ARC: List Aavegotchi $GHST token as collateral on Matic Aave network

ARC: List Aavegotchi GHST token as collateral on Matic Aave network

Description: Add GHST token as collateral on Matic\Polygon Aave network.

Rationale

Aavegotchi utilizes Aave aTokens in game as collateral assets for Aavegotchis (“playable bank”). Given Aave’s recent launch onto Polygon (where Aavegotchi is deployed) the Aavegotchi community believes it would be a great idea to have GHST token as collateral on Matic Aave. If GHST gets listed as an collateral on Aave, users of Aavegotchi will be able to use aGHST as collateral to play game.

Motivation

Increasing traffic flow, usability and user base for both Aave and Aavegotchi companies.

Specifications

  1. Author of the AIP is a summoner of Aavegotchi.

  2. Aavegotchis are crypto-collectibles (NFT). Aavegotchis are pixelated ghosts living on the Matic blockchain, backed by the ERC-721 standard. Their value is determined by rarity level, which is calculated via multiple factors, such as base traits, amount of staked collateral, and equipped wearables. GHST token is the backbone of Aavegotchi Realm. GHST is an in-game asset, used in all operations in-game (excluding usage of GHST as a collateral for summoning your Aavegotchi, which are aTokens powered by Aave) such as buying portals (opened\closed), wearable items, potions and etc.

  3. Users of Aavegotchi will borrow GHST, to use it as an in-game asset, to speculate on in-game values or for other in-game purposes. Users of Aavegotchi will use it as a collateral to summon their gotchis with it because aTokens are another backbone of the game. To summon your Aavegotchi you need to have a specific amount of aTokens to make it possible.

  4. GHST token has been live on Ethereum Mainnet since September, when it was launched via a continuous bonding curve DAICO sale (still live today at aavegotchi.com/curve). The token was launched at 0.2 DAI / GHST and currently sits at around 1.2 DAI. The all-time high is around 1.9 DAI / GHST. GHST is priced in DAI because unlike most tokens in crypto, it is actually backed by a DAI reserve at a 33% connecting weight. This makes the price more stable because it takes more in/out to change the price.

A significant challenge for Aavegotchi as a project was deciding to migrate our ecosystem from Ethereum to Polygon (then known as Matic). Expensive gas fees would have made it impossible for our players to use Aavegotchi NFTs (which require constant onchain attention). However, from January to March, we were able to complete the migration and launch successfully onto Polygon.

  1. GHST is the official utility token of the Aavegotchi ecosystem and can be used to purchase portals, wearables, and consumables.
  2. The inflation of GHST tokens through purchases on the bonding curve is positively correlated to the GHST price. The bonding curve has been mathematically programmed to increase the price of GHST as the circulating supply of GHST increases.
  3. The bonding curve has minting and burning permissions, but these permissions are governed by the AavegotchiDAO which exists on Ethereum Mainnet. GHST tokens are not arbitrarily minted or burned. The supply is determined by inputs via the bonding curve.

Market data

  • Market Cap - $51,749,216
  • 24hr Trading volume - $37,126,549
  • Currently listed on 14 exchanges: Binance, Okex, Poloniex, Uniswap, Gate.io, LBank, Bilaxy, Hoo, MXC, BiBox, 0x, BamBoo Relay, QuickSwap, 1ich Exchange;
  • Maturity - 8 months.

Socials

Token Stats

  • Contract’s date of deployments: 14 September 2020 (Ethereum)
  • Number of transactions:
  • Number of holders for tokens
  • Currently circulating Supply - 43,451,634 GHST,
  • Current total supply - 47,011,598.

Full Disclosure

Proposition Power

We request that interested parties delegate their proposition power to coderdan.eth (0xC3c2e1Cf099Bc6e1fA94ce358562BCbD5cc59FE5) so we can apply to create the AIP vote.

Thanks for your consideration!
Coder Dan, CEO of Pixelcraft Studios, Summoner of Aavegotchi

34 Likes

“Increasing traffic flow, usability and user base for both Aave and Aavegotchi companies.”

I’m holding both $AAVE and $GHST so I support this ARC!

3 Likes

I support it, imagine for a second.

what kind of strategies can we create using $GHST as collateral!

2 Likes

BIG Aave/GHST fan here. GHST was early to the Polygon party and brought alot of people including me over to Polygon.

1 Like

$GHST has my support. I also own $AAVE and think it’s a perfect pair.

1 Like

Really love the bonding curve mechanism implemented, especially the impact of token burns.

Whenever GHST is spent in the Aavegotchi ecosystem, 33% of it is automatically sent to a burn address. Unlike most cryptocurrencies, burning GHST (except via the bonding curve) does not actually lower the total value of GHST, since that value is stored as DAI within the bonding curve.

What burning does do is trap DAI within the bonding curve, essentially increasing the reserve ratio over time, which stabilizes the price of GHST.

A great asset to both lend & borrow

3 Likes

I support this recommendation. It will add value to AAVE and GHST. Also interested in the long term benefit of financial models with this bonding curve.

1 Like

Would be amazing to have GHST accepted as a collateral. Aavegotchi is the largest project on Polygon (besides Aave) so it’s a no-brainer in my opinion.

3 Likes

This should coincide with haunt 2.

1 Like

Bumping because it’s relevant again and would allow Aavegotchis with GHST as collateral for Haunt 2.

2 Likes

Thanks for this proposal

Could you please provide a Risk Analysis for example based on Methodology - Risk

2 Likes

Yes, preparing this now!

3 Likes

I strongly support this measure. Both AAVE and GHST communities would benefit.

2 Likes

BIG UPDATE: We just launched a Snapshot for this Proposal, with 26,000 AAVE already voting YES.

https://snapshot.org/#/aave.eth/proposal/QmXtz8SHLFD2gFrHBb9QNjkVfKKtYWBkB6g2rk1BhVjzfY

We also recently published a useful overview of why GHST is a great DeFi collateral: The DeFi Case for GHST. Why GHST is the perfect collateral for… | by Aavegotchi | Aug, 2021 | Medium

Thanks for your support Aave fam :ghost::heart::ghost:

5 Likes

Hello :wave:t3:

Great to see this. I am voting in favor of this proposal.

Hey @coderdan just wondering :thought_balloon: once this is approved and added to Aave, what are your thoughts of having a GHST pool on PoolTogether with Aave as the yield source?

Thanks.

:wink:

1 Like

that sounds really fun!

2 Likes

The army of gotchies says AYE!

1 Like

The Aavegotchi project is an unprecedented way to introduce new users to defi and polygon by way of an NFT game. Allowing GHST as collateral on Aave polygon will almost certainly guarantee increased adoption of Aave polygon by a new class of users.

The stability that the bonding curves adds to the GHST price also makes it a meaningful and rare opportunity to have NFT gaming intersect with Aave. Many other NFT gaming tokens would not be such clear candidate to consider due to extreme price volatility.

As both an AAVE token and GHST token HODLer, not only am I in favor of this proposal, but I plan to deposit a meaningful amount of GHST into Aave polygon as collateral if this proposal is accepted by the community… as long as those aGHST tokens earn FRENS :slight_smile:

2 Likes

Great :+1:t3: If we need to discuss this further we can do it here on the forum, Discord community call or any medium (Twitter Space, etc).

I am excited to see how Aavegotchi is evolving.

:sunglasses:

1 Like

Let’s this Frens.

GHST would be a safe we can help each other and help gamify aave

1 Like