Aavegotchi is DeFi-staked Crypto Collectibles, created by the team behind the Aave DeFi dapp, the core element is the Aavegotchi (Aave+Tamagotchi) characters.
Each one is an Ethereum based NFT, which is created using a new ERC20 token that Aave is creating. Called GHST (Ghost), users will spend GHST to create each Aavegotchi and each Aavegotchi will need to be backed with the interest-bearing aTokens that run the Aave dapp.
These are generated when a user deposits collateral into Aave, so depositing DAI generates aDAI, USDC generates aUSDC etc.
In this way, each Aavegotchi is created with some inherent financial value. Indeed, because each aToken has an interest rate attached to it, so each Aavegotchi will increase in value over time.
