Allow Aavegotchis to take on debt

Ideas
1

With the release of S2 gotchis will come native Polygon aTokens available as spirit force collateral. Since we are degens who like to have fun, I think it would be great if aavegotchis could take on debt using its spirit force collateral. This would incentivize putting more spirit force into aavegotchis as users can use their aavegotchi to hold leveraged positions, and would make for some great twitter moments when gamblers get liquidated and lose their aavegotchis. (I may be a bit sadistic)

What do you all think?

3 Likes
2

i mean ultimately i would want to be able to do this with even season 1 aavegotchis. as well as delegate my proposal power to causes that align with my values. a step in the right direction if you ask me.

1 Like
3

The problem with s1 aavegotchis is that they use collateral from mainnet aave which doesn’t work as collateral on polygon aave, and so can’t draw debt. I don’t think there’s anything that can be done about this on a technical level.

4

until there is cross chain composability fren. this will change many things

1 Like
5

I am hoping we can eventually use our gotchis, items, and land all as collateral. Aave governance voting to approve GHST as collateral is a huge first step. I wonder if it makes more sense for an outside project to accomplish this; i.e. I stake my parcel as collateral for a loan and lose it if GHST drops below xxx. I would probably prefer your concept of risk to be external to the GHST economic universe, but I still want it to exist.

1 Like
6

That would be awesome @Mori

Imagine going to the baazar and having a financing plan via Aave borrowing to buy the goodies you want :hugs:

1 Like
7

so crazy it just might work.

1 Like
8

Agree with you. Lets do it.

1 Like
9

Great idea definately need partnership with aave but they also can’t take control of the gotchi as collateral it should stay with you unless it needs to be liquidated… also valuation is going to be a challenge. Is the value of the gotchi included or only it’s bags? I’d it gets liquidated can you re summon it by adding more or does it die like sacrifice?

1 Like
10

This is only for the spirit force collateral. amTokens represent deposits into AAVE, which can be borrowed against. As the gotchi is the holder of these amTokens, this means that the gotchi is entitled to borrow against the amToken value. There’s no formal partnership with AAVE needed, and your gotchi’s value wouldn’t play a part in this feature at all. The proposal is simply to add the functionality for your gotchi to borrow against its collateral in the same way that any user normally can.

1 Like