Axie Infinity is an online game developed by Vietnamese studio Sky Mavis in 2018. In the game, you can breed and fight creatures called Axies, whose appearance is inspired by the amphibian axolotl.
The main feature of Axie Infinity is that it allows you to receive tokens after each victory. So, each player can earn tokens worth several tens of dollars every day. We figured out how the popular NFT game Axie Infinity works, how you can earn tokens in it, and what are its future prospects on the crypto market.
Few Words About Axie Infinity
Axies creatures are unique tokens (NFT) based on the Ethereum blockchain technology, so they can be traded. You play Axie, earn digital assets, and exchange them for real money. In the Philippines, due to the pandemic, the game has become a real source of income for thousands of people. The daily fan base of the game as well as the number of Axies owners has grown 30 times to 1 million people since March.
The success of the game is reflected in the value of its digital asset. Over the past six months, the price of the AXS token has grown 40 times and the daily revenue has grown from $4,000 to $14 million.
If you’re interested in learning more about Axie Infinity, as well as about its key features and the nearest plans of developers for the future, then check the article on this topic in our blog, we already have one!
We have collected five ways to make money in Axie Infinity. Let’s consider them in detail!
Strategy #1 Just Play the Game
For winning battles and completing quests, you are given Smooth Love Potions tokens (SLP). In mid-August 2021, the token was trading at $0.20. SLP is needed to breed Axies. You have three main ways to earn SLP: quests, adventure mode (player versus environment, PvE), and arena mode (player versus player, PvP).
Quests
Axie Infinity offers a daily quest (play 10 games in adventure mode and 5 games in arena mode), by completing which the player receives 50 SLP or $10.
Adventure Mode
In this mode, you earn SLP tokens for defeating computer-controlled monsters. The battles get more difficult as you move from level to level, but the rewards also increase. The maximum sum you can earn in Adventure mode per day is 100 SLP or $20.
Arena Mode
You can also test your strength in Arena mode by battling other participants. Players earn SLP for each victory. The sum of SLP you can earn in matches depends on your rating. The higher your rating, the more SLP you get. At the highest ratings, that’s 12 SLP ($6) for a victory.
Strategy #2 Breed and Sell Axies
You can breed Axies for sale or lease them (you let other players use your Axies in exchange for 20-30% of the SLP they earn).
The process is very simple. Choose 2 of your Axies, click ‘Start Breeding’, confirm the transaction, and get the egg. After 5 days, click on the egg, then click ‘Morph to Adult’, and voila, you have Axie ready to fight or sell.
Breeding costs 4 AXS and a variable SLP fee depending on how many times the chosen Axies have been bred previously. The new Axie can be bred a maximum of 7 times.
Strategy #3 Providing Liquidity for AXS and SLP Tokens
One way to make money on Axie Infinity is to act as a liquidity provider (LP) on decentralized exchanges. Players need to exchange their AXS and SLP earned in the game for other currencies. If you have these tokens, then you can swap them on the exchange. You will receive income from the commissions that traders pay for exchanging tokens.
If you’re wondering where to buy AXS, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy AXS in the fastest and most convenient ways using any available payment method. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
For example, let’s take an AXS/ETH pool on a Sushi exchange. You will need these two tokens in equal proportions (for example, the equivalent of $100 in AXS and ETH). You provide these tokens to the pool and earn 0.25% commission every time someone exchanges AXS for ETH or vice versa. The reward is paid in SUSHI tokens in proportion to your share in the pool. This pair has an annual return of 8% on Sushi at the time of writing.
Profitability reaches 60%, depending on the exchange and trading volumes. It’s important to remember that the higher the profitability, the higher the risks. When providing liquidity, there are two main risks: the risk of a smart contract (theft of your funds from the account) and the risk of impermanent losses (occurs when an asset is highly volatile).
We’ve found the following liquidity pools on the Ethereum and Binance Smart Chain:
Ethereum
Binance Smart Chain
Strategy #4 Speculation on the Price of Rare Axies
If you believe in the long-term success of the game, then you can try to profit from the price increase of exclusive Axies. This Axie is split into many ERC20 tokens that are traded like any other cryptocurrency.
For example, Almace is an extremely rare Axie that has been split into 10,000 ALMX tokens.
Strategy #5 AXS Staking
The game developers promise to launch staking of AXS tokens by the end of 2021.
Staking replaces mining and makes it possible to mine new blocks without using a lot of computing power. The point of staking is to ensure all operations on the blockchain and support the network. For this, holders of digital coins receive a reward — a part of the tokens from the game treasury.
Now all the proceeds of the game go to the treasury of the community of AXS token owners. The game community will decide through a vote how to use these proceeds. More AXS tokens, more votes in decision making, and thus higher rewards.
Conclusion
A couple of years ago, only a few earned money in computer games. Professionals won money in tournaments, some amateurs upgraded player characters or traded their skins. But the main beneficiary of internal purchases was the game’s creator. Axie Infinity pioneered the Play-to-Earn model and empowered all players to make money.
Axie Infinity is a promising and ambitious project that can advance the NFT gaming sector. It may seem like a very expensive game, but it’s actually a relatively affordable way to invest in the NFT asset market.
Have you ever played Axie Infinity? Feel free to share the photos of your Axies in the comments!
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