Over the past few months, Decentralized Finance (DeFi) platforms have grown in popularity amid a bullish cryptocurrency market. This digital money revolution is now moving through the gaming industry, creating an intersection between DeFi and the gaming experience that experts say will now play a huge role in the next generation of games.
DeFi-focused tokens such as Polkadot (DOT), Solana (SOL), and Chainlink (INK), to name a few, have seen euphoric moments in the markets, gaining ground as they go. as major developments continue.
Investors and speculators should expect even more in the future, given the bold move by companies like the Solana Foundation and Houbi Ventures to invest in early-stage blockchain-based gaming platforms that integrate DeFi into their system.
The emerging game-to-win model is designed to highlight the benefits of blockchain technology in the gaming industry and beyond. In this article, we take a look at some of the latest developments in the DeFi gaming space with a discussion of what the future holds for this emerging industry.
DeFi Simplifying Games
DeFi Land, a game designed as a multi-channel farming simulation aimed at enabling a gamified decentralized finance experience, has just raised $ 4.1 million in a funding round that saw the participation of more than 40 investors.
Founded in 2021, DeFi Land is privately owned and headquartered in India and primarily focuses on creating educational and entertainment solutions for users looking to explore the DeFi space.
DeFi Land’s agricultural simulation is designed with all the features you would find on a conventional DeFi platform. Unlike most DeFi platforms, however, DeFi Land has an interoperable ecosystem capable of running on other established platforms such as Uniswap or even Binance Smart Chain’s PancakeSwap.
This approach should help DeFi Land avoid reinventing the wheel, giving its users access to automated market-making protocols, decentralized exchanges, and leading protocols on other blockchain networks. On DeFi Land, each digital asset is represented as a plant. For example, Solana’s SOL token is a sunflower and the USDC stablecoin is a corn plant. Users can farm these tokens and earn a percentage of annual yield which comes in the form of a bountiful harvest.
To make it even easier for users to learn the ins and outs of DeFi, DeFi Land offers a practice mode where users can learn all about DeFi using fake assets while playing in a guided version of the game.
Brian Lee, a senior executive at Alameda Research – one of the companies that took part in DeFi Land’s investment round – said that DeFi Land mixes up “two of the most interesting things happening in crypto right now – games and DeFi ”.
Huobi Ventures bets big on DeFi games
With a growing wave of institutional capital flowing into the DeFi space, more and more companies are starting to pay serious attention to the sector, and Huobi Ventures is one of them.
The investment arm of the Huobi cryptocurrency exchange, Huobi Ventures, recently announced a $ 10 million fund that will invest in early stage projects that combine a gaming experience with decentralized financial features, to know GameFi.
In addition to the financial support of Huobi Ventures, the startups that take up the challenge will also benefit from the support of Huobi in terms of legal and technical support for their project, not to mention PR and commercial assistance.
Huobi Ventures Director Unica Yin said, “Blockchain technology has the potential to revolutionize the gaming business model and will play a pivotal role in the next generation of games. “
Huobi Ventures also announced a $ 100 million fund dedicated to DeFi projects, which would apparently help Huobi establish strategic mergers and acquisitions in the blockchain and crypto space.
The model play to win
Along with investors and project developers who are fueling the gaming furnace to win, communities of non-fungible token (NFT) gamers and enthusiasts are also joining the fray, as evidenced by recent developments such as Crypto Gaming United and Zebedee which managed to close $ 5 million and Fundraising rounds of $ 11.5 million, respectively.
Crypto Gaming United – a startup aiming to build a global community of gamer guilds in the gaming space to win – has raised $ 5 million in an oversubscribed seed funding round. The round was led by leading Australian venture capitalists Mark Carnegie and Chrono.tech.
Crypto Gaming United is an NFT based gaming guild with over 1,500 members. The guild works across multiple gaming platforms, providing gamers with education as well as financial literacy on the digital economy. It earns money by sharing the income generated within sponsored gaming platforms with its members.
Headquartered in Singapore, the guild primarily includes players from South Africa, India and Indonesia with a common theme of players from low-income economies. Since most players are unable to purchase expensive gaming equipment and assets, guild sponsors can provide funding that allows players to generate income. The founders of the guild also recognize that Singapore is a forward-looking jurisdiction in terms of digital assets and cryptocurrencies.
“At Crypto Gaming United, we overcome the cost required for admission to the game, thereby enabling players to generate income from their gaming exploits,” noted Carnegie.
Crypto Gaming United is not the only organization in the race. Zebedee is also getting in on the action as seen with its Series A funding which grossed $ 11.5 million.
Zebedee provides a suite of tools and products that allow developers to integrate Bitcoin (BTC) into their games while giving players access to wallets, streaming tools, and other gaming infrastructures that enhance gaming performance. performance.
The game is a tipping point
The relationship between the DeFi sector and the gaming industry is mutually beneficial. On the one hand, players who spend endless hours and money on gaming platforms will now be able to monetize their time and progress. DeFi platforms and the industry as a whole will also have an easy process of onboarding new users, thus increasing adoption by the general public.
Experts are already predicting that the gambling trend for winning will further blur the lines between financial assets and in-game collectibles that were once considered worthless. This will allow a new generation of gamers to trade in-game assets beyond the gaming platform.
DeFi mechanics allow various gaming platforms to make the gaming experience not only entertaining but also lucrative as gamers will be able to win just by playing.
Already, blockchain-based collectible and trading games such as AXIE Infinity and Splinterlands are demonstrating that a game-to-win business model has the potential not only to disrupt the gaming industry, but also to change the way games are played. users learn and interact with DeFi platforms.
Given that the video game industry is valued at $ 175 billion and the DeFi space currently sits on a total locked-in value of nearly $ 100 billion, an intersection of the two industries could be a game-changer.