View source for Axie Infinity (AXS)

==Basics ==
* Based in: Vietnam
*[https://research.thetie.io/axie-infinity/ Launched] in 2018
* [[Mainnet]] release:
* [[NFTs]]
* [https://andrewsteinwold.substack.com/p/-quick-overview-of-the-nft-ecosystem From] [[Zima Red]] (1-10-2020):
''"The most popular crypto [https://axieinfinity.com/ game]. It features “fierce, fantasy pets that you can battle & collect while earning crypto.”"''
== History ==

* [https://research.thetie.io/axie-infinity/ From] [[TheTIE|The Tie]] (21-7-2021):

''"Axie Infinity initially launched in 2018 as a traditional online game but gained notoriety with the addition of the AXS [[token]] into the Axie ecosystem in November of 2020."''

==Audits & Exploits==

*[[Bug bounty]] program can be found [insert here].
*Got [https://cdn.axieinfinity.com/landing-page/AXS_Audit_Report.pdf audited] by [[Quantstamp (QSP)|Quantstamp]] (24-10-2020).

===Bugs/Exploits===

*[https://decrypt.co/106186/axie-infinity-ceo-moved-3m-in-tokens-before-622m-hack-disclosure-report From] [[Decrypt (DCPT)|Decrypt]] (29-7-2022):
''"Sky Mavis CEO Trung Nguyen transferred $3 million worth of tokens just before the hack was disclosed, but he says today that claims of insider trading "are baseless and false." Nguyen’s token transfer occurred just three hours before Sky Mavis disclosed the Ronin network hack, nearly a full week after the attack occurred, and closed off access to the network until late June."''
*The hack on the bridge is linked to the [[Lazarus]] Group. Hackers [https://www.theblock.co/post/156038/how-a-fake-job-offer-took-down-the-worlds-most-popular-crypto-game duped] a senior engineer at Axie Infinity into applying for a job at a fictitious company.
*[https://decrypt.co/96322/hacker-622-million-axie-infinity-ronin-ethereum From] [[Decrypt (DCPT)|Decrypt]] (29-3-2022):
''"Ronin has been targeted in a hack that saw an estimated $625 million worth of cryptocurrency drained from its [[bridge]]. Developer Sky Mavis [https://roninblockchain.substack.com/p/community-alert-ronin-validators?s=w announced] the news today, writing that the exploit took place on March 23 but only discovered earlier today. The attacker used “hacked [[Private Key|private keys]]” to execute the exploit, per the team’s report, and thus was able to forge [[Transaction (Tx)|transactions]] to claim the funds. According to the report, the attacker was able to sign [[transactions]] from five of the nine current [[validator]] [[nodes]] on the Ronin network, which is the threshold needed to approve signatures. Ultimately, the attacker gained access to Sky Mavis’ own four validators, along with one operated by Axie DAO. Sky Mavis discovered the breach after someone attempted to withdraw 5,000 [[Ethereum (ETH)|ETH]] of their own funds from Ronin and found that they were unavailable via the bridge."''
*On July 13, 2021 Axie Inifinity NFT marketplace [https://twitter.com/AxieInfinity was] [[Denial-of-Service attack (DoS attack)|DDoS-ed]].

== Governance ==
=== Admin Keys ===
=== DAO ===
=== Treasury ===

*[https://www.coindesk.com/nft-game-axie-infinity-axs-governance-token-sale Will have] a community treasury which gets part of the [[fees]] (19-11-2020). Still being built (20-7-2021):

''"In early 2021, the Community Treasury will go live and begin to receive revenues generated by Axie Infinity as well as a portion of [[Proof-of-Stake (PoS)|staking]] rewards. This treasury will be governed by AXS [[stakers]] once the network has become sufficiently [[decentralized]]."''

== Token ==
=== Launch ===
=== Token allocation ===

* 270,000,000 total amount of [[tokens]]. From Binance Research (26-10-2020):

{| class="fandom-table"
|Binance Launchpad Sale
|11.00% of the total token supply
|-
|Private Sale
|4.00% of the total token supply
|-
|Play to [[Earn]]
|20.00% of the total token supply
|-
|[[Staking]] Rewards
|29.00% of the total token supply
|-
|Team
|21.00% of the total token supply
|-
|Advisors
|7.00% of the total token supply
|-
|Ecosystem Fund
|8.00% of the total token supply
|}

=== Utility ===
* [https://www.coindesk.com/nft-game-axie-infinity-axs-governance-token-sale From] [[CoinDesk]] (19-11-2020):
"''The tokens will not only have [[governance]] functions but also fee-sharing features where proceeds will go into a Community Treasury."''

* From their [https://axieinfinity.com/axs/ website] (20-7-2021):

''"AXS holders will be able to claim rewards if they [[stake]] their tokens, play the game, and participate in key governance votes. Players will also be able to earn $AXS when they play various games within the Axie Infinity Universe and through user generated content initiatives."''

=== Token Details ===

* [https://research.thetie.io/axie-infinity/ From] [[TheTIE|The Tie]] (21-7-2021):

''"Axie Infinity Shards (AXS) are the governance tokens behind the Axie Infinity platform, while Smooth Love Potions (SLP) are the [[utility token]]."''

== Coin Distribution ==

* [https://medium.com/etherscan-blog/ethereum-bridges-four-months-on-10ee36f889ae From] [[Etherscan]] (6-10-2021):

''"AXS is by far the most concentrated token per [[bridged]] chain out of the top tokens, with AXS locked in Ronin making up 56% of its circulating supply!"''

== Technology ==

* [[Whitepaper]] can be found [https://whitepaper.axieinfinity.com/ here].
* Code can be viewed [https://github.com/axieinfinity here].
* Built on: [[Ethereum]], but [https://cryptobriefing.com/axie-infinity-ubisoft-binance-ethereum-sidechain/ announced] (24-12-2020) its own [[layer Two|layer two]] [[blockchain]] called Ronin (RON) to avoid Ethereum’s low throughput.
=== How it works ===

*[[Bankless DAO (BANK)|Bankless]]' Axie 101 can be read [https://metaversal.banklesshq.com/p/axie-infinity-economics-101?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0MjYwNTU3NywiXyI6IitrN3VtIiwiaWF0IjoxNjM0NTM5OTEyLCJleHAiOjE2MzQ1NDM1MTIsImlzcyI6InB1Yi0yNDIxODEiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.Y86aEqfR98jDr6rkb here] (10-2021).
*[https://research.thetie.io/axie-infinity/ From] [[TheTIE|The Tie]] (21-7-2021):

''"AXS is released through the ecosystem fund, play-to-earn as a reward for winning tournaments, and in the future through staking. Smooth Love Potions, on the other hand, are uncapped and are [[distributed]] based on user engagement. A few ways to generate SLP on the Axie Infinity platform include winning matches in the Arena and Adventure Mode, winning tournaments with prize rewards, and having other users interact with your land.  Smooth Love Potions, on the other hand, are uncapped and are distributed based on user engagement.''

''Users can expect to receive anywhere from one to eight SLP for each win they get in the Arena against other players or in adventure mode for completing new levels.  In order to win more matches (and thus earn more tokens), users look to enhance their Axies’ skill sets and genetic makeup through breeding. Users on the platform can breed Axies using Smooth Love Potions (SLP) given to them as a reward for winning battles in-game or bought on exchanges. Once a user has bred Axies, they are given an egg which takes five days to mature. Upon maturation, users can use the new Axie in Arena or Adventure Mode to earn more SLP, breed the Axie (as long as it isn’t bred with a direct relative), or sell the Axie on the Axie Marketplace. The ability for Axies to reproduce to yield more desirable traits has led some Axies to be more valuable than others, with the most valuable Axies fetching hundreds of thousands of dollars at auction.''

''The most valuable Axies are known as the “Origin Axies”, the original 4,088 Axies that were released at the start of the game and are marked with the Origin Axie tag. These Axies serve as a [[status]] symbol within the game, similar to holding a piece of limited edition sports memorabilia. 1,375 of the 4,088 Origin Axie supply was dedicated to in-game prizes and future promotions and were stashed for later use. These unreleased Axies were given the title “Axie Origin Coins” (AOC) and can be exchanged 5:1 for Origin Axies. At the time of writing, 1,237 AOC remains in the Axie Deployer to be released over time, according to Bloxy, equivalent to about 247 Origin Axies. Within these Origin Axies, a distinct group of roughly 30% is given the additional tag of “Mystic Axies,” which are the most valuable characters due to their rare genetic makeup and skill set, which can not be inherited. These Mystic traits are the only traits in the game that can be upgraded to ‘Legendary’ skills, making them even more powerful in battle than other Axies. Some Axies can have more than one Mystic trait, making them even rarer and thus more valuable to users. In addition to the ‘Mystic’ trait, Axies can more than one Mystic trait, making them even rarer. "'' 

=== Fee Mechanisms ===
=== Upgrades ===

* [https://stake.axieinfinity.com/ Launched] the AXS staking system, and unveiled their latest progress on [https://axie.substack.com/p/october Battles V2 and Ronin DEX] (10-2021).

=== Staking ===

* [https://axieinfinity.com/axs/ Not live] yet (20-7-2021). Went live (see above). AXS holders have [https://thedefiant.io/2-5b-of-axs-staked-in-axie-infinity/ $2.5B staked] in Axie Infinity in the first two weeks.

=== Liquidity Mining ===
=== Scaling ===

==== Ronin (RON) ====
*[[DeFi Safety]] [https://medium.com/defi-safety/ronin-is-the-least-secure-network-in-defi-c5b8cacf0049 called] Ronin 'the least secure network in [[Defi|DeFi]]'.
*Got its token [https://twitter.com/hassanbassiri/status/1486723612937625602?s=21 launched] (27-1-2022). To 'improve its utility' free tx were reduced and users need to own RON for fees ([https://twitter.com/Ronin_Network/status/1518988188781617152 26-4-2022]).
*[https://coin98insights.com/what-is-ronin-network-ron#How_does_Ronin_Network_work? From] [[Coin98 (C98)|98coins]] (26-11-2021):

''"Ronin [[mainnet]] uses [[Proof-of-Authority (PoA)|Proof-of-Authority]]. PoA is a modified version of [[Proof-of-Stake (PoS)|PoS]] and [[validators]] on PoA are usually less than 25. In the early stage of the Ronin Network, Sky Mavis will have sole discretion around validators. Therefore, the team has recruited an all-star cast of partners from the traditional gaming, crypto, and NFT space to serve as validators of the network such as [[Binance]], [[Unisoft]], Animoca, [[Nonfungible]].com, [[Dapp.com]]"''

* Ronin went [https://axie.substack.com/p/ronin live] on [[mainnet]] (1-2-2021). A RON token for Ronin got [https://twitter.com/SkyMavisHQ/status/1448325940359024640 teased] on 13-10-2021, shortly after Sky Mavis raised 152m in private investment, hinting that RON is probably their way of returning money to their investors.

*[https://cryptobriefing.com/axie-infinity-ubisoft-binance-ethereum-sidechain/ From] [[Crypto Briefing]] (24-12-2020):
"''French gaming giant [[Ubisoft]] is the inaugural [[validator]] on the Ethereum sidechain. Besides Ubisoft, the list of validators includes leading cryptocurrency exchange [[Binance]], NFT data provider NonFungible.com, gaming company Animoca Brands, and investment firm Sparq."''

*[https://ournetwork.substack.com/p/our-network-issue-43?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjoxMjIyOTcwOCwiXyI6ImM5eFJuIiwiaWF0IjoxNjAzMTExOTI2LCJleHAiOjE2MDMxMTU1MjYsImlzcyI6InB1Yi0yMTM2MiIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.VZyAJdflPmI1RtURsSBG6zh6MSqErgrlhS29kAtEyeY From] [[Our Network]] #43 (16-10-2020):

''"We are hard at work on [https://medium.com/axie-infinity/introducing-ronin-axie-infinitys-ethereum-sidechain-8745e31eaef1 Ronin], an application-specific [[Ethereum]] [[sidechain]] for the Axie ecosystem which will be a crucial element in the pursuit of true hyper-growth."''
=== Different Implementations ===
=== Interoperability ===

* The Ronin bridge [from Axie to Ethereum] is [https://decrypt.co/103999/axie-infinitys-ethereum-bridge-back-online-after-622m-hack back online] (28-6-2022) more than three months after attackers completed one of the largest [[Decentralized Finance (DeFi)|DeFi]] heists to date.

=== Other Details ===
== Oracle Method ==

*[https://bravenewcoin.com/insights/axie-infinity-integrates-chainlink-oracles From] [[Brave New Coin]] (16-11-2020):

''"Is integrating [[Chainlink (LINK)|Chainlink’s]] [[decentralized]] price feeds and verifiable randomness tool."''
== Privacy Method ==
== Compliance ==
== Their Other Projects ==

=== Katana ===

* Axie Infinity has their [https://thedefiant.io/axie-infinity-new-amm/ own marketplace] (4-11-2021):

''"Axie Infinity has launched an [[Automated Market Makers (AMM)|automated market make]]<nowiki/>r called Katana for its sidechain Ronin, and it had 25,000 people interact with it less than 10 hours into its existence, according to [[Jiho Zirlin]], co-founder of the team that built the game. There is already [https://axie.substack.com/p/katana $115M] in assets locked into Katana."''

* [https://thedefiant.io/axie-infinitys-katana-breaks-1b-in-tvl-after-launch-of-governance-token/ From] [[The Defiant]] (8-11-2021):

''"Has attracted more than $1.2B in [[total value locked]] since [https://thedefiant.io/axie-infinity-new-amm/ launching] on Nov. 4, as users load in [[liquidity]] in order to [[farm]] the [[Sidechain|sidechain’s]] new governance token, RON."''

* Scored a miserable [https://www.defisafety.com/pqrs/348 5%] on [[DeFi Safety]] (24-1-2022):

''"[[Address|Addresses]] are not listed in their documentation. [[Smart Contract (SC)|Contracts]] are [https://katana-analytics.roninchain.com/home active], though this cannot be identified without being able to choose a specific [[contract]]. No public software repository could be found. Code testing cannot be measured with a private [[GitHub]] repository. Katana is unaudited. No [[bug bounty]] is offered on Katana. There is no information on [[Admin Key|Admin Keys]]. No pause control information was found. No [[timelock]] information was found. No [[oracle]] information was found."''

== Roadmap ==
* Can be found [Insert [[LINK|link]] here].

== Usage ==
* [https://ournetwork.substack.com/p/our-network-issue-43?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjoxMjIyOTcwOCwiXyI6ImM5eFJuIiwiaWF0IjoxNjAzMTExOTI2LCJleHAiOjE2MDMxMTU1MjYsImlzcyI6InB1Yi0yMTM2MiIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.VZyAJdflPmI1RtURsSBG6zh6MSqErgrlhS29kAtEyeY From] [[Our Network]] #43 (16-10-2020):
"''With over 6,000 [[on-chain]] monthly active users, Axie Infinity is now the most-used game on [[Ethereum]]. MAUs have doubled in the past 6 weeks, with growth driven by players from developing economies such as Indonesia, the Philippines, and Venezuela. Axie demonstrates how the nature of work is evolving; work and play are merging in this digital-first playground/economic laboratory. MAUs spiked by 62% during the week of September 24th which coincided with [[Delphi Digital]]’s acquisition of [https://decrypt.co/42958/delphi-digital-buys-five-ethereum-nfts-for-162000?utm_source=twitter&utm_medium=social&utm_campaign=auto rare Mystic Axies].''

''From September 13th to October 13th, the Axie [[NFT]] marketplace processed 3931.64 [[ETH]] volume (~$1.5m USD) as compared to 462.36 ETH volume during the prior one month period. This represented an 850% monthly increase in volume, spurred by increased interest in Mystic and Origin Axies. The marketplace contract was interacted with by 3,540 unique [[addresses]], an increase of 185.4% over the prior month. The Axie marketplace has a 4.25% fee, translating into a revenue of 167.09 ETH. In the future, marketplace fees will go to a community pool governed by the yet to be released Axie governance token."''
* [https://www.coindesk.com/nft-game-axie-infinity-axs-governance-token-sale From] [[CoinDesk]] (19-11-2020):
"''“We’ve overtaken [[CryptoKitties]] by quite a lot,” co-founder [[Jeffrey Zirlin]] said in an interview. Axie Infinity is currently the only Ethereum-based NFT project with over 10,000 monthly active users, according to a press statement. The data site [[DappRadar]] shows about 2,500 users in the last 24 hours, making it currently the most popular game on Ethereum."''

* From this [https://twitter.com/leah_cb/status/1417290598143332362 thread] (17-7-2021):

''"With over half a million [[daily active users (DAU)]] and ~60% coming from the #Philippines, @AxieInfinity is exploding. To put this into perspective, around the end of July 2020, just before I first wrote about it, Axie’s DAU was below 500."''

* From this [https://twitter.com/packyM/status/1417106446425149442 thread] (19-7-2021):

''"April: $670k rev May: $3M June: $12.2M July (18 days in): $79.1M. It's also the leading NFT Marketplace by volume over the past 1, 7, and 30 days."''

* From this [https://twitter.com/santiagoroel/status/1442496732458221581 thread] (27-9-2021):

''"Is on pace to generate ~$1.4B in 2021 revenue, up from ~$80M in 2020.  @SkyMavisHQ, studio behind Axie, is 3 years old w/ 61 employees making it arguably the fastest growing & most capital efficient game studio."''

* From [[Unchained]] (2-1-2022):

''"[https://twitter.com/WuBlockchain/status/1475665922220126211 According] to journalist [[Collin Wu]], data from [[Nansen]] shows that daily active [[Address|addresses]] on Axie are down more than 70% from its all-time high in July. (To be fair, the data also shows that Axie Infinity has over 300,000 daily active addresses and ranks as the [https://dappradar.com/rankings third most used dapp] in crypto on [[DappRadar (RADAR)|DappRadar]].)'' 

''Axie Infinity has yet to crack $2 million in daily revenue since December 7th, [https://www.tokenterminal.com/terminal/projects/axie-infinity according] to data from [[Token Terminal]]. This comes after generating over $2 million in revenue every day between July 4, 2021, and December 7, 2021. In fact, over the past 180 days, Axie Infinity has averaged daily revenue of over $6 million, marking December as a severe outlier."''

=== Projects that use or built on it ===
== Competition ==

* Other [[Play-to-earn (P2E)|Play-to-Earn]] crypto games, like [[DeFi Kingdom (JEWEL)|DeFi Kingdoms]], [[Splinterlands]] and others.

== Pros and Cons ==
=== Pros ===
=== Cons ===

* Ronin is a [[Proof-of-Authority (PoA)|PoA]] [[sidechain]] ([https://coin98insights.com/what-is-ronin-network-ron#How_does_Ronin_Network_work? 26-11-2021]).

== Team, Funding, Partners ==
=== Team ===
* Full team can be found [here].
* [https://www.coindesk.com/nft-game-axie-infinity-axs-governance-token-sale From] [[CoinDesk]] (19-11-2020):
"''The Vietnam-based startup behind the game, [[Sky Mavis]], is the most recent [[Binance]] Launchpad project."''
* Jeffrey Zirlin; co-founder and Head of Growth
=== Funding ===
*[[3AC]] was an investor [https://decrypt.co/104313/three-arrows-capital-files-for-bankruptcy-report according] to [[Decrypt (DCPT)|Decrypt]] (2-7-2022.
*Axie Infinity has [https://decrypt.co/82656/axie-infinity-creator-raises-152-million-andreessen-series-b?utm_source=telegram&utm_medium=social&utm_campaign=smt raised] $152 million in a Series B round led by [[Andreessen Horowitz]] with participation from [[Accel]] and [[Paradigm]] (5-10-2021).
*[https://research.thetie.io/axie-infinity/ From] [[TheTIE|The Tie]] (21-7-2021):

''"Delphi Digital announced their foray into the Axie Infinity ecosystem in October of 2020 by purchasing roughly $160,000 worth of Axies. All of the Axies purchased by Delphi hold the Mystic title, with four of the Axies having three Mystic traits and one of the Axies having four Mystic attributes."''

*[https://metaversal.banklesshq.com/p/axie-infinity-builders-raise-75m?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjozNjI5NDE1NywiXyI6IllKNVRlIiwiaWF0IjoxNjIwODkyMTA0LCJleHAiOjE2MjA4OTU3MDQsImlzcyI6InB1Yi0yNDIxODEiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.ut3Uwu6BbD6V Raised $7.5M] from (11-5-2021):

''"Over a dozen institutions and nearly two dozen individuals participated in the Series A, including but not limited to Libertus Capital, [[BlockTower Capital]], Animoca Brands, [[MetaCartel Ventures (MCV)|MetaCartel Ventures]], [[CoinGecko|Coingecko Ventures]], [[Mark Cuban]], [[Alexis Ohanian]], [[Gabby Dizon]], [[Peter Pan]], [[Julien Bouteloup|Julian Bouteloup]], GmoneyNFT, [[Leo Cheng]], and more."''
* [https://www.coindesk.com/nft-game-axie-infinity-axs-governance-token-sale From] [[CoinDesk]] (19-11-2020):
"''Has raised $860,000 in a strategic sale of its AXS [[governance]] token. The funding round [was] led by [[Delphi Digital]]."''

=== Partners ===
* [[Aave]] and Axie Infinity are [https://medium.com/aave/aave-x-axie-infinity-cca4fb2fa84d?source=collection_home---4------0----------------------- teaming up] to connect [[DeFi]] and NFTs (11-2020).

* Axie Infinity [https://medium.com/axie-infinity/announcing-axie-infinity-partners-with-makerdao-9466a21a868c partnered] with [[MakerDAO]] for in-game DAI reward distribution.
* Axie Infinity partnered with [[Samsung]] as a key [[dApp]] [https://news.samsung.com/global/developers-and-users-get-more-out-of-blockchain-with-samsung-blockchain-platform-sdk partner] for integrating the Samsung Blockchain Platform SDK. The Axie Infinity game is currently available in the Samsung [[wallet]].
* Axie Infinity [https://axieinfinity.com/kyber-network integrated] with [[Kyber]] Network for [[META|meta]]-[[transaction]] token [[swaps]] during the Land sale in early 2019.

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