Aavegotchi bonding curve closes on exact day of DAI depegAccording to Arkham Intelligence, a provider of on-chain analytics, Voyager has sold crypto assets worth $358.5 million during the past six weeks. These assets included ERC-20 tokens traded on Binance.US, Coinbase, and directly through over-the-counter trades facilitated by market maker Wintermute.
At 2 am UTC yesterday, the community of Pixelcraft Studios voted to end their two-and-a-half-year sale of GHST tokens. Nigel Carlos, the chief marketing officer of Pixelcraft Studios, said in a statement said that this decision would “derisk from DAI.” The vote closed a smart contract (bonding curve) that provided liquidity for the minting and burning of GHST, which is the Aavegotchi ecosystem’s base currency and governance token with a market cap of over $76.6 million and a total supply of 54.6 million that was bound to DAI and had a DAI treasury in the smart contract.
Carlos has confirmed that GHST is now a fixed-supply token, with the $33 million worth of DAI tokens minted in this contract dedicated to developing the Aavegotchi gaming protocol’s ecosystem. GHST serves as an “entry ticket” into the game, allowing users to purchase NFT portals, wearables, and consumables, stakes to earn rewards and participate in DAO governance. The Aavegotchi bonding curve was launched on September 14, 2020, at an initial price of 0.2 DAI per GHST token.
When users purchase GHST tokens using DAI, the Aragon-powered bonding curve smart contract ensures new GHST tokens are minted and vice versa. This process means that each subsequent buyer of a GHST token will have to pay a slightly higher price per token, leading to an increased market cap for GHST compared to its DAI reserve.
In what was essentially a multi-year token sale, the protocol has raised a total of 30.3 million DAI. Developers initially proposed in January that these funds should be distributed for protocol liquidity (20%), the Aavegotchi DAO (40%), and its parent Pixelcraft Studios (40%).
Following the removal of the bond curve, GHST’s exchange rate is now free floating and not linked to DAI. As of this writing, it has declined 18.09% in the past 24 hours to $1.12. Concurrently, DAI’s price has also decreased 6.76% over a similar time period, settling at $0.9314. As a result, the proceeds from the GHST token sale have been adversely affected by the sudden DAI depegging event.
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