As the crypto world grows, more innovations in the ways of making money are born every day, powered by blockchain technology Axie Infinity is a Play To Earn game where players earn crypto by playing this cute game every day.
I have been playing this game for over 9months and in this article I will explain everything about axie infinity, where the money comes from in this game as well as 4 ways to make money on Axie Infinity (with numbers so make sure you read the whole thing).
This is an Axie, it’s an NFT (Non-Fungible Token), which is basically a fancy way of saying a unique token, just like an uber driver uses his car to earn, you use this Axie to earn money in the game, at the time of writing you need 3 axies to start playing, battling monsters and other players and earning crypto, these axies are worth real money and you can buy them with ethereum.
You see here a team of 3axies battling another team of 3 axie, at the end of the match the game will mint $SLP for the winner as a reward, SLP is an erc20 token with real-life value and you can easily exchange it for ETH or any other crypto/fiat.
There is also a PvE mode where players play against AI monsters and win SLP up to a maximum of 100SLP per day.
You can check the price of SLP on coingecko here, As I said $SLP is minted by the game and rewarded to players so why is it not worth zero? in fact, it’s been steadily rising since last year from $0.01 to $0.24?
the answer is that SLP is needed to breed axies, breeding is the process where you marry two axies of yours to create a new one, you have to burn SLP to do so, this creates demand for the token, this burning mechanism is what keeps the price of SLP high as more and more people breed they have to buy SLP from market/ earn it.
You can see here the amount of SLP minted vs burned and we notice the increase of both activities in recent weeks as the game got more and more popular, this was an overview of the game and its economy and now I start talking about the 4 ways you can make money in the game.
1: Farming $SLP:
This the most straightforward way to earn money in-game, you buy 3 axies, and you start playing the game, after some grinding for a couple of weeks you will easily start making 200SLP (250 if you are good) per day playing for 2hours at most.
At $0.25 per coin, 200SLP is $50 a day which is higher than minimum wage in a lot of countries, and for 1-2h playtime a day that’s more efficient than some jobs even in developed countries, not to mention the game is fun.
obviously, you need 3axies to start playing, a decent team will cost you between $700-$1000 -in today’s prices- to start making $50 a day, that’s 5% daily APR (1825% yearly APR), ideally you will make your money back in 20 days (more than that since you will only make 150slp or so a day for the first month)
If you are not willing to put the money or can’t afford it, there are scholarships that you can join, a scholarship is an agreement between someone who has axies and you, he lends you his axies, you play and share the revenue between you two at a predetermined split, usually, the player takes 70% and the axie owner gets 30%, just keep networking, join the axie discord server and facebook groups and you’ll find someone.
2: Breeding Axies:
Breeding is an art that if mastered can be a very lucrative business, basically, you breed two axies and they give you other axies to sell or play with, each axie can have up to 7 children, you need $SLP and $AXS to breed, right now it cost 4 $AXS tokens and $SLP according to this table (the team usually changes this to control the axie economy).
let’s take an example strategy doable right now, if you go to the marketplace and check for the cheapest axies being sold right now, you’ll find the floor at 0.15ETH, a virgin axie can be found at around 0.25eth, you’ll need to buy 3 of them at a cost of 0.75eth, breed 2 together up to the third child (you won’t be profitable if you breed more for this strat) at a cost of 1800 SLP (300+600+900) SLP tokens and 12 $AXS tokens (4*3), after 5days, you’ll get 3 new virgin axies and you can breed them with your third axie from generation 0, (you can’t breed siblings,mother and child), so let’s calculate our profit.
Prices: ETH: $2200, SLP: $0.2, AXS: $10 Floor axies: 0.15ETH($330)
3 virgin axies: 0.75ETH ($1650)
SLP 1800 token: 0.163ETH ($360)
AXS 12 tokens: 0.019ETH ($40)
3 Previously virgin axies: 0.45ETH ($990)
3 new virgin axies: 0.75ETH ($1650)
Total: 1.2ETH ($2640)
You can repeat this loop indefinetly.
Now, by the time you read this article chances are the numbers can be much different, you just need to calculate your average cost for acquiring axies and how much you sell them for once you breed them out.
Also, when you get involved in the game, you’ll learn that some axies are way more expensive then others and if you can build a farm around a popular axie your profit margins will be much higher, good luck.
Let’s say you don’t have the time to play the game and have some capital that you want to put work, maybe you’re a veteran breeder and you have axies sitting in your wallet collecting dust, you can open a Scholarship program where you find someone to play with your axies and you split the earnings, usually scholars take 70% and you take 30% but you can negotiate any split with your scholar.
So you put together a team with $600-$1000, share the team safely with your scholar and he will grind SLP for you, at the end of a period you set, you split the earnings, after the first month people can easily earn 200SLP a day (6000SLP a month) if you go with 70-30 split you’ll collect 1800SLP ($360) for basically doing nothing, notice how you can earn back your initial capital after a few months.
One pitfall to avoid if you’re planning on doing this, make sure you trust your scholars not to multi-account with their devices, it is against the rules to play on multiple accounts and doing so will result in your axies getting banned for a long period of time, pro tip: on small scale, just get your irl friends and family in on the action, people you trust.
4: Flipping Axies/Land:
Just like flipping houses, or pokemon cards, flipping axies is becoming a thing with the way the marketplace is structured people setup auctions on their axies/land, look for auctions that start high and end lower than the average worth of similar axies, follow a couple of auctions and you might be able to scoop it up lower than what it worth, these bargain deals happen more often than you think and you just need to put the hours, learn the game and be involved. good luck
None of this financial advice btw.