In brief
- Aave will distribute AAVE tokens to winners of an Axie Infinity blockchain-based game.
- Axie will also offer AAVE token holders a unique Aave-themed NFT.
- Axie launched its AXS governance token November 4.
Aave and Axie Infinity, leading protocols within the Ethereum-based DeFi and NFT worlds, are joining forces in a crossover to promote the blockchain-powered intersection of finance and gaming.
Aave announced today a partnership with blockchain-based Axie Infinity—a “Pokémon inspired digital pet universe,” but with battles, of course.
Aave will sponsor Season 13 of the Axie Community Alpha and put up AAVE protocol tokens worth more than $4,000 in rewards for in-game battle winners. Community Alpha seasons coincide with updates to the game, which is still under development. Existing AAVE token holders can also claim a limited-edition Aave themed NFT, a unique character to use in the Axie Infinity universe.
It’s an example of crypto projects getting creative about gaining new users by bringing together otherwise unrelated industries for fun and profit.
Axie Infinity is a blockchain-based game that uses NFTs, short for non-fungible tokens, to allow users to battle and trade with unique ‘Axie’ creatures. NFTs use blockchain technology to create digital assets that are completely unique and can’t be copied or replicated, which has created a market for bespoke goods.
Axie Infinity is currently the most popular game on the Ethereum blockchain, having attracted nearly 10,000 total users over the last 30 days, and has grown from less than 100 daily active users in June to more than 1,200 in November, according to blockchain activity tracker DappRadar.
Axie's AXS protocol token has been listed on Binance after the token sale concluded November 4. The AXS token will allow holders to vote on proposals for the future of the project, as well as distributions from a community treasury.
✨ AXS is live on @Binance! 🔷
This is a momentous day made possible by the Axie community and our stalwart allies-- thank you!
Our quest is just beginning.
👇 The detailshttps://t.co/EcH9ixdqGK pic.twitter.com/WDcjBw1HKW
— Axie Infinity (@AxieInfinity) November 4, 2020
Aave is a DeFi protocol that lets users lend and borrow cryptocurrencies and dollar-pegged stablecoins. Decentralized finance grew over the summer, capturing the promise of decentralized networks by replacing banks with smart contracts running on a blockchain network. Aave grew its total value locked, a measure of crypto collateral added to let the protocol function, from less than $100 million at the beginning of July to nearly $1 billion in November, according to blockchain aggregator DeFi Pulse.
Aave has become a popular DeFi protocol, releasing novel financial products like flash loans and credit delegation while providing relatively favorable rates on lending and borrowing services. The AAVE token being given out during Season 13 of the Axie Community Alpha can be traded on many crypto exchanges, or used to participate in governance of the Aave protocol, similar to the AXS token.
By offering a unique, themed Aave NFT on the Axie platform and AAVE tokens as a reward, users of both protocols are likely to get exposure to elements of the crypto ecosystem they might have otherwise ignored. If Axie Infinity and Aave continue to grow, the battle rewards could be much bigger the next time around.