Yield Guild Games (YGG), a key investor in the “play-to-earn” arena, has teamed up with the stablecoin-focused decentralized finance (DeFi) project HaloDAO to allow its gamers to cash out using its stablecoin and gain yield.
YGG describes itself as a “play-to-earn gaming guild.” It allows gamers to earn tokens through blockchain-based economies, most notably with the Axie Infinity video game.
The agreement with HaloDAO involves the firms building out financial tools to track performance and give gamers a way to increase their earnings with yield farming and other DeFi applications.
YGG founder Gabby Dizon said the project will help people gain access to “income-earning opportunities in crypto,” and she said it “improves their income-earning capacity.” The rise in popularity of Axie Infinity has been so pronounced that regulators in the Philippines are reportedly weighing how to tax gaming-related earnings.
In August, YGG received $4.6 million in a funding round led by venture capital firm Andreessen Horowitz (a16z) with the firm stating it plans to invest in digital assets in virtual worlds.
Last month, YGG and cryptocurrency exchange FTX also signed a sponsorship deal in which Axie Infinity players from developing countries will receive scholarship funds. The deal with FTX involves YGG loaning non-fungible tokens (NFTs) to players who cannot afford to buy their own, under a revenue-sharing agreement.
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