{"id":46508,"date":"2023-03-11T15:03:41","date_gmt":"2023-03-11T19:03:41","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46508"},"modified":"2023-03-11T15:03:43","modified_gmt":"2023-03-11T19:03:43","slug":"aavegotchi-bonding-curve-closes-on-exact-day-of-dai-depeg","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/aavegotchi-bonding-curve-closes-on-exact-day-of-dai-depeg\/","title":{"rendered":"Aavegotchi bonding curve closes on exact day of DAI depeg"},"content":{"rendered":"\n

Aavegotchi closed the bonding curve<\/a> defining the exchange rate between its namesake (GHST) and the DAI U.S. dollar-pegged stablecoin.<\/p>\n\n\n\n

\"Aavegotchi
Aavegotchi bonding curve closes on exact day of DAI depeg<\/figcaption><\/figure>\n\n\n\n

The DAI stablecoin depegged on that same day as a result of the continued destabilization of the Dollar Coin, which was brought on by $3.3 billion in stalled stablecoin collateral deposits owing to its issuer Circle by the long-gone Silicon Valley Bank<\/a>.<\/p>\n\n\n\n

The community voted at 2 a.m. UTC to end a two-and-a-half-year contract sale of Pixelcraft Studios' native GHST token and “derisk from DAI,” according to a statement from CMO Nigel Carlos. As Carlos said:<\/p>\n\n\n\n

\n

“The vote closed a smart contract (bonding curve) that provided liquidity for the minting and burning of GHST, the Aavegotchi ecosystem\u2019s base currency and governance token that has a market cap above $76.6 million and a total supply of 54.6 million. Which was bound to DAI and has DAI treasury in the smart contract.”<\/p>\n<\/blockquote>\n\n\n\n

The $33 million DAI tokens that were used to mint GHST in the contract are “intended to go toward growing the gaming protocol's ecosystem,” claims Carlos, who also claims that GHST is now a fixed supply token. <\/p>\n\n\n\n

The GHST token is referred as as a “access ticket” into the Aavegotchi game, where users can use it to pay for NFT portals, wearables, consumables, stake to earn rewards, or take part in DAO governance. On September 14, 2020, the Aavegotchi bonding curve was established with an initial price of 0.2 DAI per GHST.<\/p>\n\n\n\n

The bonding curve smart contract, powered by Aragon, ensures that new GHST tokens\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> are created when consumers buy GHST using DAI and vice versa. <\/p>\n\n\n\n

GHST has a greater market cap than its DAI reserve because to the fact that after the first buyer of a GHST token, each additional buyer will have to pay a little higher price for each token.<\/p>\n\n\n\n

A total of 30.3 million DAI were given to the system in what was basically a multi-year token sale. Developers first suggested in January that the DAI funds be split 20\/40\/40 between the Aavegotchi DAO, its parent Pixelcraft Studios, and the protocol liquidity.<\/p>\n\n\n\n

The bond curve has been eliminated, making the GHST exchange rate free-floating and independent of DAI. At the time of publication, the token's price had dropped to $1.12 per token, an 18.09% decrease over the previous 24 hours. <\/p>\n\n\n\n

In the meantime, the cost of one DAI stablecoin <\/a>dropped 6.76% in the previous day to $0.9314. The DAI depegging incident caused a meaningful loss to the token sale revenues even though they were no longer linked.<\/p>\n\n\n\n

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when this shitstorm is over i fully expect all of the mainstream crypto news to writes articles on how @aavegotchi<\/use><\/svg><\/span><\/a> somehow picked the EXACT DAY OF DAI'S DEPEG to close the $GHST<\/use><\/svg><\/span><\/a> bonding curve

holy shit what a story<\/p>— coderdan.base.eth \ud83d\udfe6\ud83d\udc7b (@coderdannn) March 11, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Aavegotchi closed the bonding curve defining the exchange rate between its namesake (GHST) and the DAI U.S. dollar-pegged stablecoin. The DAI stablecoin depegged on that same day as a result of the continued destabilization of the Dollar Coin, which was brought on by $3.3 billion in stalled stablecoin collateral deposits owing to its issuer Circle […]<\/p>\n","protected":false},"author":43,"featured_media":46510,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[13728,5109],"class_list":["post-46508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-aavegotchi","tag-dai"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/03\/croc_1678555457898.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46508"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/46510"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}