Wonderous 8-bit spooks, the Aavegotchi, are back with a little more of their revolutionary nous. This time around, they are launching an innovative new lending facility. Coming soon, owners can rent out their cherished Gotchis with zero risk involved.
A minor crisis is hitting the play-to-earn sector, causing a bottleneck in operations. As games rise in popularity, entry costs also increase. However, simply generating more assets would compromise the scarcity of those already in circulation. What is required then, is an effective scaling solution that does not punish existing users, while allowing new gamers to experience these new worlds.
To counteract this problem, a number of lending platforms have sprung up. In essence, acting as a middleman to negotiate the finer details of any rental contract. However, the traditional process relies on a system of trust and is unreliable. So, the boffins at Aavegotchi are introducing a trust-less, on-chain mechanism to lend assets to would-be gamers. The benefits of which are riskless lending and instant transactions.
Going forward, Aavegotchi will enable players to loan their 8-bit spectres to anyone in the world. A smart contract will take care of the business end, while owners set parameters such as duration, fee (if any) and percentage split of assets collected. This smart-contract will apply limited rights to the borrower, rendering the asset impossible to steal. As a result, the owner gets to earn yield on their unused asset and the borrower gets to participate in the play-to-earn era.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
The post Aavegotchi Innovates with Trustless On-Chain Lending Mechanism appeared first on NFT Plazas.
