Aavegotchi Bonding Curve Closes on Day of DAI Depeg

• Aavegotchi closed the bonding curve between its GHST token and DAI stablecoin on March 11th.
• The closure was due to the USDC depegging caused by $3.3 billion in stablecoin collateral deposits stuck in the now-defunct Silicon Valley Bank.
• GHST is now a fixed supply token with $33 million in DAI tokens that were spent to mint it going towards developing the game’s ecosystem.

Aavegotchi Closes Bonding Curve With DAI

On March 11, 2021, nonfungible token (NFT) protocol Aavegotchi closed its bonding curve defining the exchange rate between its Aavegotchi (GHST) token and the Dai (DAI) U.S. dollar-pegged stablecoin. This closure was due to the ongoing fallout from the collapse of Silicon Valley Bank and the Circle-issued USD Coin (USDC) depegging, which caused DAI to lose its U.S. dollar peg as well.

GHST Token Now Fixed Supply

As a result of this closure, GHST is now a fixed supply token with $33 million in DAI tokens that were spent to mint it going towards developing the game’s ecosystem. According to Nigel Carlos, chief marketing officer of Pixelcraft Studios, users can use GHST as an “entry ticket” into Aavegotchi; they can purchase NFT portals, wearables and consumables within the game, stake to farm rewards and participate in decentralized autonomous organization (DAO) governance with it.

Bonding Curve Smart Contract Details

The Aavegotchi bonding curve smart contract — powered by Aragon — was created on September 14th 2020 at an opening price of 0.2 DAI per GHST token when purchased via Dai; this ensured new GHST tokens would be minted each time someone used it for that purpose and vice versa when someone burned them through buying or selling them on exchanges or transferring them away from their wallet address until all 54.6 million available tokens had been distributed over two-and-a-half years‘ time according to Carlos‘ statement to Cointelegraph .

Community Vote To Derisk From Dai

At 2am UTC today, community members voted to end their contract sale of native GHST tokens and „derisk from Dai“, according to Carlos who stated that this vote closed off their smart contract which provided liquidity for both minting/burning of these coins but also had a market cap above $76 million dollars at press time with a total supply of 54 million coins overall as mentioned before .

Funds Going Towards Protocol Liquidity & Ecosystem Development

The funds will primarily go towards protocol liquidity (20%), the Aavegotchi DAO funds (40%) and parent Pixelcraft Studios‘ development costs while still leaving some room for more speculative investments down line since there are only six months left before their deadline ends – December 31st 2023 but so far no official statements have come out yet concerning what those might be exactly .

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