Afit Finance

Aavegotchi Finance (AFIT) represents a unique approach to Decentralized Finance (DeFi) by gamifying yield farming and governance through the use of Aavegotchis, pixelated ghost avatars backed by Aave’s interest-bearing tokens (aTokens).

At its core, AFIT aims to incentivize long-term participation and engagement within the Aavegotchi ecosystem. Instead of solely rewarding users based on deposited capital, AFIT leverages a combination of on-chain and off-chain factors to determine rewards. These factors include, but are not limited to, the rarity score of an Aavegotchi, its kinship score (representing community engagement), and participation in governance activities.

The AFIT token itself serves multiple functions. Primarily, it’s a governance token, granting holders the right to propose and vote on changes to the Aavegotchi DAO. These proposals can range from altering the game mechanics and rarity farming rewards to allocating resources for community initiatives and partnerships.

Beyond governance, AFIT plays a crucial role in incentivizing participation within the Gotchiverse, Aavegotchi’s metaverse platform. It’s distributed as rewards for completing tasks, engaging with other players, and contributing to the overall growth of the ecosystem. Players can earn AFIT by participating in mini-games, exploring the Gotchiverse landscape, and providing liquidity to the ecosystem.

A key component of the AFIT ecosystem is Rarity Farming. This innovative mechanism rewards Aavegotchi holders based on their Aavegotchi’s rarity score, kinship score, and XP (experience points). These three factors are calculated based on various on-chain and off-chain activities, encouraging users to nurture their Aavegotchis, actively participate in the community, and contribute to the overall success of the platform. Rarity Farming distributes AFIT rewards on a periodic basis, providing a consistent incentive for long-term engagement.

AFIT also facilitates the creation of a decentralized and self-sustaining ecosystem. The token is integrated into various aspects of the Aavegotchi experience, from purchasing items in the Gotchiverse to upgrading Aavegotchi traits. This creates a closed-loop economy where value accrues back to the community.

One significant aspect of AFIT’s finance is its integration with Aave’s lending protocol. Aavegotchis are backed by aTokens, which generate yield from lending activities. This means that even while owning an Aavegotchi, users are still earning interest on their deposited collateral. This synergistic relationship between gaming, DeFi, and governance creates a unique and compelling value proposition for participants.

In summary, Aavegotchi Finance, powered by the AFIT token, provides a compelling and gamified approach to DeFi. It incentivizes community engagement, long-term participation, and active governance, all while leveraging the underlying yield-generating capabilities of Aave’s protocol. The integration of gaming, DeFi, and governance makes AFIT a unique and potentially disruptive force in the ever-evolving landscape of decentralized finance.