Non-fungal tokens (NFT) finally began to receive sunshine when they appeared in the most popular smart contract applications.

The average purchase price of NFT on peer-to-peer exchanges is skyrocketing. Six-digit sales are no longer uncommon. The Dapper Labs company behind the great-grandfather of NFT’s merged ventures, CryptoKitties, made significant investments in the original Flow blockchain, including investments from NBA stars.

All this progress makes some people wonder: what do you want to do next?

Those who can pick up some ideas are Aavegotchi co-founder Jesse Johnson. Johnson has been working on asset-backed products in the NFT space long before they became popular. One of his first projects, Bullionix, was one of the first platforms to offer NFTs supported by real goods, especially gold.

With Aavegotchi, Johnson goes beyond tangible assets and transforms real estate-backed NFTs into a whole new field: Decentralized Economy (DeFi).

According to the Aavegotchi article, Aavegotchi digital assets are backed by Aave interest rate codes. Using a mix of different NFT standards, including ERC-721 and ERC-998, Aavegotchi has many value-determining properties, including random coin properties, aTokens bet values ​​and NFT-enabled wearables. “Baby” NFTs that can be programmatically linked to each Aavegotchi.

In an interview with Cointelegraph, Johnson revealed that the Aavegotchi team currently has up to 9 full-time employees, and that they are also considering joining a small army of volunteer artists and enthusiasts. Going forward, Johnson aims to immerse Aavgotchi deeper into the DeFi card by mixing NFT and this explosive new economic sector in new and exciting ways.

After talking to him, one thing became clear: this is just the beginning of NFT and Aavegotchi.

NFT exceeds cultivation
Cointelegraph: How is NFT best for DeFi? NFT can create a shortage of digital content and can be customized, but what are the unique features of NFT that will make smart contracts especially useful and important for DeFi?

Jesse Johnson: I think there are certain things we see in relation to crops. It’s an idea to take up NFTs, and that’s fine – I feel like everyone’s trying to do that now – but when it comes to real DeFi, you can get a lot more interesting NFT products.

What if the NFT you manage is the key to a specific liquidity pool or is a debt instrument – it has something like that when it guarantees you something from another platform. I think you can start seeing unions, so to speak, because that’s not exactly the right word, but you need all that consistency across all DeFi platforms. If there may be NFT standards that are cost-effective across platforms, or about the same as brands that make money on one platform and are accepted on another, you will begin to see how NFTs are used to integrate all of these platforms on very interesting ways. .

Trademarks. Before, I thought of brands only when it comes to games, but in reality there can be many more.

For example, if you want to take out a DeFi loan now, with the vast majority of loans, it will depend on your security – this is not your credit rating, this is your security.

“But I think one of the really exciting things that NFT can solve is the idea of ​​a reputation system that permeates the entire Web3, no matter what platform you use, and even if you want to be semi-anonymous.”
As long as you maintain an NFT that shows that you have achieved such a reputation, and that NFT has been in this portfolio for X period, you can start looking for solutions for a kind of credit score system where, well, we will check that you have half a dozen brands. – Who – For these brands, starting point and time in your portfolio, you are entitled to the best price – something like that.

I do not think we can point to a project that does this now, but I think it is very possible and makes sense as a solution to the problem of the need for a reputation system that maintains a certain degree of anonymity. I think this can be a lot of fun.

CT: It feels like bringing the concept of an NFT game into the DeFi metaverse with interoperability and plug-and-play quality. This is similar to using NFT as a reputation and engagement team.

JJ: Yes, yes. Since all wallets accept 721, they only meet the compatibility requirements for everyone, at least Ethereum. So you can really go on and on. We can see many examples of this.

This is not the most important use case for Aavegotchi, but we know about it.

Source: CoinTelegraph