Gotchi Lending
Last updated
Last updated
Gotchi Lending is the Aavegotchi protocol’s solution to the scalability dilemma facing NFT Gaming, and our improvement on the scholarship model made popular by other play-to-earn games. It ensures Aavegotchi NFTs get into the hands of players as seamlessly as possible.
The Aavegotchi Owner sets the terms of the lending smart contract, the borrower then agrees to the terms and uses the Aavegotchi in the Gotchiverse. Once the contract is ended, profits are split and the Aavegotchi is returned to its original owner.
When creating a new Gotchi Lending listing, the owner determines how much to charge the borrower up front. Most listings have a minimal upfront cost, or none at all.
The Aavegotchi owner also determines the profit split between themselves and the borrower. They’ll choose which tokens to split, and also what percentage to divide the profits. Many guilds have predetermined rates, however on the open lending market you will find a wide range of profit splits.
Aavegotchi owners also have the ability to share profits with a third party. This feature is especially useful for guilds and larger organizations. Profits can be split between the asset owner, the borrower, and the guild’s treasury (or any other third party address).
When the Lending Contract’s duration is up, it can be ended by either party. Once it is ended the tokens earned are split per the agreed upon percentages. Note: If the agreement is not ended after time has expired it will continue indefinitely.
To claim tokens a borrower must first deposit any collected spillover Alchemica into a vortex marked on the minimap. After this either they or the Aavegotchi’s owner can claim the tokens via an on-chain transaction.
Any tokens not deposited at the vortex will be automatically distributed per the terms of the contract once the lending contract has been ended.
Gotchi Lending allows players to lend their Aavegotchis to themselves for maximum security! Players can hold their Aavegotchis on a hardware wallet, but lend them out to a hot wallet. Even if the private keys for the hot wallet are stolen, the Aavegotchis will remain safe, as lent Gotchis cannot be transferred. Set up is simple and requires just a few steps.
Head to your Aavegotchi page with your hardware wallet connected, and click the “Lend” button under the Aavegotchi you want to lend.
Before creating the listing, click the “View Whitelists” button. Then click “Add Whitelist”, and create a new Whitelist, with your HOT WALLET as the only member. This will prevent other players from borrowing your Aavegotchi.
Once your Whitelist is created, note its unique ID (a 3 or 4-digit number) then head back to the Lend dialog. Input the Whitelist ID, along with a duration (just one hour is fine). Then click the “Next Step” button.
If you’d prefer all of your profit to flow back to the hardware wallet, set Owner to 100%. If you’d prefer funds to stay in the hot wallet, set Borrower to 100%. Or if you’d like them to flow somewhere else, set “Other” to 100% and set a Third-party address.
Finally, confirm your listing, and use your hot wallet to execute the listing on-chain. Your Gotchi will be transferred to the hot wallet, and will stay there until you claim it back. Now you can enter the Gotchiverse securely and conveniently without worry!