Aavegotchi is a decentralized social network that enables trustless lending and borrowing on the blockchain. It’s launching an ICO to fund its project, which will be powered by Aave tokens used as collateral for loans.
What is blockchain? Blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The “Aavegotchi Innovates with Trustless On-Chain Lending Mechanism” is a cryptocurrency project that uses blockchain technology to provide trustless lending mechanisms for its users. Read more in detail here: what’s blockchain.
The Aavegotchi, the magnificent 8-bit spooks, are returning with a little more innovative nous. This time, they’re introducing a cutting-edge new loan facility. Soon, owners will be able to rent out their prized Gotchis with no risk.
The play-to-earn industry is experiencing a temporary crisis, which is producing a backlog in operations. As the popularity of games grows, so do the registration fees. Simply creating new assets, on the other hand, would jeopardize the scarcity of those currently in circulation. What’s needed is a scalable system that doesn’t penalize current users while enabling new players to explore these new realms.
A variety of loan platforms have popped up to address this issue. In other words, serving as a go-between to discuss the finer points of any rental agreement. The conventional approach, on the other hand, is unreliable since it is based on a trust structure. As a result, the Aavegotchi team is creating a trustless, on-chain system for lending assets to aspiring players. Risk-free loans and fast transactions are two of the advantages.
Aavegotchi will allow gamers to lease their 8-bit spectres to anybody in the globe in the future. The business end will be handled by a smart contract, while the owners will select parameters such as time, fee (if any), and percentage share of assets gathered. The borrower will have restricted powers under this smart contract, making the item hard to steal. As a consequence, the borrower gets to participate in the play-to-earn period while the owner earns a return on their underused asset.
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