Investing in Axie Infinity. Preparing for the experiment

4 semanas ago 0 17

Cryptocurrency investments are not limited to trading and mining digital currencies. You can even make a profit in games. And earning in GameFi can be not only highly profitable, but also exciting.

CryptoProGuide.com editorial staff decided to conduct an experiment – invest in the Axie Infinity project, buy a team of fighting characters and outsource their management under the scholarship program system to another person. He will work for a percentage (60/40%, 50/50%) according to the preliminary agreement with the account owner.

We have interesting and ambitious tasks in front of us:

To gather information about the project.
To find out which characters are worth buying.
What size of investment in the project will be optimal.
Where and how to look for an outsourced account tenant.
What questions to ask a potential hire of a scholarship program, so as not to make a mistake in the choice.
Whether you need to sign a contract and what points need to be talked through before you start working together.
How to properly transfer the account to work, so as not to become a victim of scammers.
How to adjust the accounting.
How much you can earn in a day, a week.
How quickly will pay off investments, and whether it will be possible to reach a net profit.

Readers can learn about all this and much more from our new weekly reports on the progress of the experiment with investments in Axie Infinity.

Today’s post is an introductory one. We have prepared a brief introduction to the game, from which you can learn what this Axie beast is, what the essence of the project is and what types of earnings there are. What we expect from the experiment and what approximate payback can be obtained. Let’s go…

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About Axie Infinity project

This is a game on blockchain. The developer is a Vietnamese company Sky Mavis. The project was released in March 2018. Over $159 million was raised for the development of the game. Among the largest investors are A16z, Hashed, Pangea Blockchain Fund, ConsenSys, 500 Startups, as well as American entrepreneur and cryptocurrency enthusiast Mark Cuban. A detailed review of the project can be read on our website.

The game became world famous in 2021 after a series of publications on CNBC and other top media outlets. According to DappRadar, in the third quarter of 2021 Axie Infinity trading volume amounted to 19% ($2.08 billion) of all NFT transactions ($10.6 billion) for the same period.

The game project continues to evolve. Currently there are 2 modes available – PvE (battles against artificial intelligence) and PvP (one-on-one battles with the enemy).

In the future it is planned to add new levels to the game, including elements of farming (earning tokens) on land plots.

It’s worth noting that Axie Infinity is the first, but not the only brainchild of Sky Mavis. The developer has launched:

A proprietary blockchain called Ronin.
A cryptocurrency wallet with the same name (there is a browser extension, and a mobile version will be launched in November 2021).
Decentralized exchange Katana, which provides liquidity pools between the project tokens Axie Infinity Shards (AXS – game project management token), Smooth Love Potion (SLP – farming token), as well as Wrapped Ethereum (WETH) and USD Coin (USDC).

In development is RON, a blockchain management token that will be used to pay for gas for internal transfers in the system. For now, there is no fee for users. Each is given 100 free transactions daily.

Why Axie Infinity is not a scam

This project is not a one-day project. For more than 3 years, the developers have been diligently building the game strategy and token economy in order to adapt them to the constantly changing market conditions.

Institutional investors regularly invest here. For example, a Series B round in October 2021 alone raised $152 million for the company, led by Andreessen Horowitz (a16z), Accel and Paradigm. After that, the gaming project’s valuation reached the $3 billion mark.

In 2021, Axie Infinity experienced a huge boom. In just a couple of summer months, the number of daily active wallets (unique users) in the game reached 2 million. This is a record high among NFT and DeFI projects.

For Q3 2021, the game generated a fifth of all sales in the NFT-sphere, generating a trading volume of over $2 billion. Of course, such popularity has led to an overload of free tokens on the market.

The value of the farmer token SLP has dropped from $0.34 to $0.039 at the time of writing. This is due to the large supply in the market and the general downtrend in the cryptosphere heading into November 2021.

Investing in Axie Infinity. Preparing for the experiment — Digital Asset Chart

Aware of the problem with the token economy, developers are taking steps to fix it. One of the November innovations was the revision of the rating system and the cutting of rewards for those whose rait in the game is below 800.

In December, it also became known about an attempt to give SLP more practical weight, so that users engaged in bridging (breeding) axes, purchased it to pay for this process. The developers decided to increase the number of SLPs needed for a single breed by a factor of 3.

Thus, let’s summarize why the project is not a scam:

The game has been on the market since 2018.
A strong team of developers.
Active measures are taken to stabilize the token economy.
Institutional investors regularly invest in Axie Infinity.

The game has a strong community and a clear earnings scheme. These factors have made it megapopular and in demand.

How to start earning in the game Axie Infinity

What you need to get started:

Gadget or PC, laptop. It is recommended to play on the former because of better optimization. On laptops and PCs you can conduct operations with tokens and work on the internal market (buy, sell axies).
Registered account in the game.
A team of 3 characters.
Wallet on the Ronin blockchain.
Verified Binance account for withdrawal of funds.

Ways to earn money in Axie Infinity

This project allows you to earn income in several ways. Both personally and with the help of passive earnings:

Daily token farming (personally).
Running a scholarship program (outsourcing farming from 1 to hundreds of accounts).
Buying and reselling promising axi with profit.
Breeding and selling aces on the internal marketplace or open markets.
Winning in regular tournaments of arena winners. In Season 19, the prize pool is 3000 AXS ($426k).

In our experiment, we will focus on passive income on farming tokens called Smooth Love Potion (SLP). As well as buying an account, finding an outsourced player and getting a percentage of their daily output.

How much you can earn per day

Farming is guaranteed to earn 75 SPL per day. More details – in the table.

Earnings	What you need to do
50 SLP	Defeat bosses. There are 36 ruins on the first and so far the only available PvE level Lunacia Ruin. As you progress through each subsequent one, the number of SLPs for defeating bosses increases.
25 SLPS.	Complete the day quest (5 PvP victories in the arena and 10 successfully completed ruins).

Players also receive SLP for good luck in PvP battles in the arena (20 energies are given per day, on average the user successfully completes 50% of battles). The size of the reward depends on the rating.

The average daily result of an experienced user on a regular (not e-sport/enhanced) team ranges from 160 to 230 SLP. At a price of $0.039 per token on Binance, the income will range from $6.24 to $8.97.

How to properly farm SLPs

Cryptocurrency farming is a well-established step-by-step process:

Every day at 03:00 MSC, the number of energies in the account is updated. Holders of 3 to 9 axi have 20 of them, 10 to 19 axi have 40 energies, and over 20 have 60 energies. It is true that it is pointless to keep more than 3 axis on one account. It is better to create more profiles, distribute them to tenants and earn quietly.
During the next 24 hours you should first use these 20 energies. It is also worth considering – the account is new or already pumped:
1. New. Spend everything on PvE (battle against bosses), pumping the level (level) of characters (max – 25). The higher the level, the further you can go in the battle with bosses. Many people pump up to level 17-18 and then spend all the energy on the arena.
2. Pumped. Spend everything on PvP, earning SLP to the maximum. Tokens are given for the victory, and the account rating grows. The higher it is, the more SLP the user gets for success (1200 – 6 slp, 1400 – 9 slp, up to 1800 – 12 slp). This can vary depending on the strength of the opposing team. If a weaker team wins, more tokens are given, and vice versa.
After 20 energies have run out:
- New. We play arenas until 5 victories are accumulated. At the same time, the account rating grows, but no SLP reward is given.
- Pumped. Play 3-4 rounds in PvE to collect 50 tokens for passing ruins. You can choose the easiest one and pass in a row the required number of times.
The last stage is to give out the reward for the daily dailies (a regular task, for the completion of which you can get 25 SLP). At this point, there are already 5 victories in the arena and passed part of the 10 mandatory ruins. You need to complete the missing number of passes on the easiest first ruin.

A new account appears in the arena with a rating of 1200 points. With each defeat, this indicator decreases. When falling below 800 points, no PvP rewards are given. In this case, you can either pump up the rating or wait for the start of the next season of prizes in the arena, when the index of everyone returns to the original 1200 points.

Withdrawal of funds

Earned SLPs are stored on the player’s account. You can withdraw them once every 14 days. After this period, the stigma button is activated, and it will be possible to order the receipt of tokens to your Ronin wallet. Then there are 2 ways to withdraw cryptocurrency:

Through the Ronin-Ethereum bridge (a linking tool for transferring assets between blockchains) to the Metamask wallet and then to an exchange or exchanger (there is a commission).
To Binance exchange without commission. Exchange SLP to USDT, ETH or BTC and withdraw to a wallet, through an exchanger – directly to a bank card.

On average you can earn for 2 weeks 2200-2400 SLP. For a month – 4700-5000 SLP. This is $183-$195. With the average cost of teams from $400-700, the return on initial investment will be from 4-7 months.

As part of our experiment, we will not play ourselves, but will open a scholarship program. We will rent out the account and receive passive income.

This will slow down the return on investment, but will not require us to waste time, pay for electricity, equipment amortization and other expenses. You can learn how to do this in our future posts. Keep an eye on the publications.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.