What is Axie Infinity?
It’s an ecosystem built around an online game Axie infinity… The platform is developed by the studio Sky mavis… The project uses the concept Play-to-Earn…
The gameplay takes place in a virtual environment inhabited by Axie creatures. The platform allows you to cross them, creating new characters. Players earn money by winning battles and selling virtual creatures.
In the metaverse of the project, territories owned by players are represented. The plots are used for gameplay and resource extraction, and can also be sold or rented.
GameFi-the Axie Infinity project was built on top of Ethereum. A full ecosystem was deployed on the Ronin sidechain.
The platform uses two ERC-20 tokens: Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). The developers also announced the release of the Ronin coin (RON).
Axie, virtual territories and objects exist outside of the game space. All objects are presented in the form of NFT based on Ronin. They are traded on the site Axie Infinity Marketplace… A cross-chain bridge is used to move assets between Ronin and Ethereum.
The platform allows staking AXS. The exchange of ERC-20 tokens on the Ronin network is carried out using DEX Katana… The exchange allows you to interact with AXS, SLP, USDC and WETH, as well as invest in liquidity pools.
Who Created Axie Infinity?
Vietnamese studio Sky Mavis unveiled the concept for the game in December 2017. Founder and CEO of Trung Thanh Nguyen also is the co-founder of the social network Lozi… At launch, the team received support from 500 Startups Vietnam…
The trading platform has been operating since March 2018. The developers added the ability to breed Axie in May of that year.
In October 2018, virtual battles appeared, allowing you to receive rewards. At the next stage, virtual lands appeared, provided for the ownership of users.
In November 2019, the project attracted $ 1.5 million in seed investment from Pangea Blockchain Fund, Hashed, ConsenSys and Animoca Brands. Axie Infinity Token Sale launched on Binance Launchpad in October 2020, which brought the project $ 2.97 million. At that time, the price of AXS was $ 0.1.
Within the framework of Series A funding roundheld in May 2021, the project raised $ 7.5 million.The investors were Libertus Capital, Collaborative Fund, billionaire Mark Cuban and co-founder of Reddit Alexis Ohanyan.
How to play and earn in Axie Infinity?
The main characters in the online game are Axie creatures. They can be crossed, making the Axie Infinity look like CryptoKitties… Creatures are divided into several classes: beast, plant, waterfowl, bird, insect and reptile. Additional types include dusk and dawn. You can determine the class by the color of the creature.
Axie has a variety of characteristics: health, speed, experience, and morale. Classes differ in strengths and weaknesses. For example, birds are fast and plants are very healthy.
Creatures have six body parts. These include the eyes, ears, mouth, horn, back, and tail. Each Axie is characterized by a set of elements that make the characters unique.
The individual traits of a creature determine its combat characteristics. The better they are, the more chances of winning the battles. Creatures with a certain set of characteristics are of high value.
When two Axies are crossed, offspring can be produced. To avoid overgrowth of the population, the ability to reproduce is limited. Each of the creatures can produce offspring no more than seven times. Reproduction requires payment of SLP, and a large amount must be spent at each subsequent stage.
When crossing, random variables are used, which excludes preliminary determination of the characteristics of the offspring and its value. Body parts are passed on to the cub with a certain probability. The chances of their formation are determined by heredity.
Parents have dominant (D), recessive (R1), and small recessive (R2) genes. The dominant gene has the highest chance of transmission. In this case, the probability of inheritance is 37.5%. For R1 and R2, the chances of transferring a body part are 9.375% and 3.125%, respectively. You can estimate the probability of getting an individual with certain characteristics using calculator…
Axie’s development process takes time. The creature needs 5 days to reach maturity. After that, you can find out its characteristics. Breeding produces unique characters of varying degrees of rarity. As a rule, unusual creatures have better combat characteristics and are more valuable. Unripe Axies are also sold, however the cost is lower.
There are additional restrictions on breeding creatures that prevent overgrowth of the population. For example, there is no opportunity to interbreed parents and offspring, as well as brothers and sisters.
Axie can be used in virtual battles. To participate in competitions, you must have three creatures. For winning, players receive rewards in SLP tokens. Winning also earns points that increase the user’s rating. Its high value allows you to receive large rewards, but you will have to fight with strong rivals.
For beginners, battles with monsters attacking virtual lands are available. For winning, they receive rewards in utility tokens. Users have a high chance of winning such battles, but it brings little profit. In a battle with a strong opponent, it is difficult for a beginner to win.
The gameplay requires an initial investment. To breed Axie or participate in battles, you need to buy creatures. The game also uses virtual items to increase the likelihood of winning. Game objects can be purchased on the marketplace. Users can also rent Axie. Similar services are provided by game guilds…
In addition to battles, there is the possibility of gameplay in the metaverse called Lunation. The latter consists of lands where you can search for virtual items and resources. AXS tokens can also be found there.
There are 90,601 regions in the metaverse represented as NFTs. The lands are divided by region. Only some of the lots are owned by the players.
Users have several ways to generate income. One of them is Axie breeding and sale. The second source of income is rewards for winning virtual battles.
Users can also sell found items. Game objects can be bought for subsequent sale at a higher price. Trading operations are carried out on the Axie Infinity Marketplace.
Axie Infinity can generate income for players. Average gamer earnings is $ 500… Axie Infinity is especially popular among Filipinos, many of whom even left their jobs to play. The Philippine authorities have even announced the need to tax gamers.
How does Axie Infinity tokenomics work?
Initially, ERC-20 and NFT tokens were placed on the Ethereum blockchain. At the time of writing, the assets are being released on the Ronin sidechain. The latter supports AXS, SLP, USDC and WETH (ETH wrapped) tokens. NFTs have been released on the sidechain representing Axie, lands and in-game items.
The main token of the ecosystem is AXS. SLP coins are used in gameplay to pay rewards and when breeding Axie. Their maximum emission is limited to 3.2 billion, with all tokens in circulation. Developers plan to use RON coins to pay rewards in the ecosystem.
The maximum emission of AXS is 290 million. Tokens are issued gradually. Assets are channeled to the project team to implement the Play-to-Earn program, to pay staking rewards, and other tasks.
21% of AXS tokens are reserved for developers. The project team is interested in the development of Axie Infinity, since the unlocking of their assets is being carried out on schedule. For payments under the Play-to-Earn program, 20% of the AXS issue is used. These funds can be thought of as Axie Infinity’s marketing budget. The current asset release schedule is presented in white paper…
The platform operates a treasury, which began full-fledged work in 2021. It receives transaction fees (4.25% of each NFT sale). Part of the funds received from Axie’s breeding is also sent there.
The white paper plans to regulate the amount of Axie using absorbers. This decision is aimed at reducing the population and limiting the cost of virtual creatures.
How does the Axie Infinity ecosystem work?
Axie Infinity was launched as an online game using blockchain technology. Further development of the platform made it a cutting edge GameFi project that provides financial opportunities.
Axie Infinity allows you to make AXS staking… The site provides analytical information: the total amount of blocked funds, daily rewards and projected annual profitability.
The functionality of the project has expanded after the transition to the Ronin sidechain. Blockchain Explorer allows you to track transactions and get other information about the network. Web3 wallet required to use sidechain Ronin Wallet… At the time of writing, other solutions are not supported. Each user has 100 free transactions available.
A cross-chain bridge is used to add and withdraw assets to the sidechain Ronin bridgewhich only interacts with the Ethereum network. The solution also allows you to deposit funds in fiat currency.
The ecosystem includes the Katana decentralized crypto exchange. The trading platform is based on Ronin. It allows you to exchange AXS, SLP, USDC and WETH tokens.
The exchange uses pools of liquidity to which users can deposit funds and receive rewards. Liquidity providers’ commissions are 0.3%.
How is Axie Infinity evolving?
The functionality of the ecosystem is expanding and improvements are being made to the gameplay. V road map in 2022, it is planned to implement gameplay in the lands of Lunatia, as well as the launch of the alpha version of the Lunacia SDK. It is a map editor that allows territory owners to create mini-games and virtual real estate. Since 2021, the gameplay has been available to iOS and Android users, which expands the audience of the project.
Initially, gaming assets were placed on Ethereum, but in 2020 NFT was transferred to Ronin. The creators plan to use the sidechain as a GameFi-oriented platform. Ronin will allow third-party developers to run games and decentralized applications.
At the time of writing, Sky Mavis coordinates the ecosystem components. This creates risks to users… The stated goal of the platform is the transition to a decentralized management model. An important step in this direction will be the ability to vote using AXS. This feature is planned to be added in 2022.
Late 2021 launched DEX Katana. The development of the ecosystem was facilitated by the addition of WETH and stablecoins to the exchange. The ability to quickly convert project tokens into “stable coins” allows players to store funds on the platform. This reduces exchange rate risks caused by the high price volatility of the GameFi project tokens.