What's Illuvium (ILV)?

About Illuvium (ILV)

(Source: IIIuvium’s Official Website)

As an open-world RPG game, Illuvium allows players to participate in the game by collecting creatures named Illuvial. Each Illuvial exists in the form of NFT, has the corresponding occupations, and is endowed with affinity.

There are a total of 5 occupations and 5 affinities in Illuvium. Each has its own advantages and disadvantages. They are divided into 100 categories. Users can now choose from two types of gameplay, PVE and PVP, and earn rewards after completing tasks. This way, users will make their Illuvial combination more powerful.

(Source: IIIuvium’s Official Website)

ILV (Illuvium) and sILV2 are Illuvium’s two mainstream digital currencies other than BTC for ERC-20 projects on Ethereum. Token holders can use ILV to participate in liquidity mining and governance and earn rewards. There will be a lock-in period for ILV rewards, but users can use sILV in the game immediately. Overall, Illuvium adopts the current mainstream dual-token model to run the economic system within the ecosystem.

(Source: IIIuvium’s Official Website)

NFTs are also adopted by Illuvium to represent each Illuvial and in-game items which can also be traded on external NFT marketplaces. Users can purchase the corresponding tokens on the Gate.io platform, and then start to stake gameplay on Illuvium’s official staking platform to obtain profits.

Illuvium is founded by Kieran Warwick and Aaron Warwick. One of the most key reasons for the two founders to attract attention in the crypto space is that they are the brothers of Kain Warwick, the founder of Synthetix. The success of Synthetix can help Illuvium to receive higher awareness when it is officially launched.

Launched in 2022, Illuvium is currently in an external beta test. Its main creative team is over 150 people from around the world. Although the team has no well-known star founders, it is worth noting that more than half of the members are responsible for game-related work. The project has attracted a number of art creators to create detailed and unique avatar designs for each Illuvial in the game.

(Source: IIIuvium’s Official Website)

Although blockchain-related technologies have shown explosive growth in applications of the game field in recent years, especially NFT-related technologies, the reality is that users have not witnessed a product whose gameplay is not so different from that of traditional games, regardless of whether those various GameFi products are popular or not. The main creative team of Illuvium has promised to launch a higher-level game experience to further explore the metaverse and the benign mode of revenue generation. In this regard, developers need to find out whether Illuvium itself has the corresponding characteristics to achieve this point.

What kind of game is Illuvium?

Illuvium has only published the beta version. After creating an account, the game client can download the PC version. Users can choose from free and subscribed games.

(Source: IIIuvium’s Official Website)

Currently, the core mechanism of Illuvium is that users capture, collect and cultivate their own NFT Illuvial. Each Illuvial in the game has a corresponding affinity value and occupation.

If the user’s Illuvial is powerful, it can combine occupation and affinity, and can be used in battle with other Illuvials with the same affinity and occupation. Users can get rewards after completion, which is called creating synergy effects. It is similar to Combos in other games, which can provide different tactical options for users to use and collect Illuvial.

Users can also merge their own Illuvials to create new Illuvials, which will increase power after reaching a certain level.

Each Illuvial needs to be captured in the initial stage, and the user must conduct the capture game through fragment props. The more powerful the wild Illuvial, the higher the level of shards used to capture, which can increase the probability of capture.

When Illuvial is damaged in battle, users can put it in fragments to restore health, pay a certain fee to speed up the recovery, or use items to speed up the recovery of health. Some Illuvials are quite unique in rarity and appear as sparkles, gold, or holograms.

Illuvium has five distinct classes: Warrior, Guardian, Psion, Rogue, and Empath. Their details have not yet been announced. The current known information indicates that players need to match multiple Illuvials, and they need to consider the synergistic effect of occupation and affinity, especially when building a “sublimated” mixed occupation. For example, Berserker is a combination of Warrior Illuvial with Rogue Illuvial. Players can combine two of the same class to create an Illuvial with specific skills for that class.

There are five Affinities in Illuvium: Air, Nature, Fire, Water, and Earth. Each Illuvial with an affinity can bring about and take damage. For example, Water Illuvials will bring about extra damage to Fire Illuvials, but less damage to Earth Illuvials. Players can mix the five Affinities in Illuvial to form an Affinity Combination.

(Source: IIIuvium’s Official Website)

Meanwhile, Illuvium has also launched its own Land system as economic assistance for gameplay, which will be put into use after the official release. However, lluvium’s Land has already started an early auction in June 2022, with a total of 20,000 of five levels of Land. It accounts for one-fifth of the total number of Lands in the game. The Land of the T1-T4 grades adopts the form of a Dutch auction, while the most advanced T5 Land adopts the British auction.
In the Auction, a batch of 282 lots is listed every hour, with a total of 72 batches. The selling of each batch lasts 2 hours. After listing, it will drop at a rate of 2.5% per minute until it is sold or the time runs out.

ETH and sILV2 can be used to pay for the land, but not in the same transaction. While sILV2 will not attract external revenue, it will incentivize current token holders to exchange their yield tokens for sILV2. This will greatly reduce the long-term total supply of ILV, causing ILV to deflate and the token price to rise.

Landowners will have the chance to earn income from players in the main game by virtue of the innovative feature of the Balancer multi-token Weighted Pool. They will achieve this by exchanging the Fuel they generate in the game for ETH. On the other hand, Illuvium players will exchange ETH for Fuel, which is used to complete all transactions in the game except for IlluviDEX transactions between players.

How ILV works

As an ERC-20 token on the Ethereum blockchain, Illuvium (ILV) offers many different use cases within the ecosystem. The launch of the official version of the subsequent game, as well as the utility judgment in the staking, will exert an influence on the price of ILV.

(Source: IIIuvium’s Official Website)

Currently, Illuvium has completed two rounds of low-cost ILV release sales. The release process has been nearly halfway through according to the official release plan.

(Source: IIIuvium’s White Paper)

ILV rewards have a one-year vesting period, but players can use sILV2 immediately in the game. The sum of ILV and sILV2 is 3 million, so the total supply is limited. Circulation will also be lower as many users have staked their tokens.

ILVs serve three primary purposes:

1. When playing the game, players can earn rewards in ILV tokens according to their successes and achievements.

2. Holders can stake ILV in the Illuvium Vault. Stakeholders can get rewards in ILV or sILV2.

3. Holders can govern the game through Illuvium’s Decentralized Autonomous Organization (DAO). The Illuvinati Council allows the community to collaborate on building games, improving proposals, and deciding on changes to other governance models.

Users must pay Ethereum gas fees if they move ILV and sILV2 which are ERC-20 tokens. Now, the public still has no idea about how the project team successfully implemented ERC-20 transactions into the game because the official version has not yet been launched.

About ILV Liquidity Pool

(Source: IIIuvium’s Official Website)

Balancer, Illuvium’s liquidity pool, is designed to allow DeFi protocols to draw from less liquidity than is typically required for seed pools like Uniswap or Sushiswap. Balancer is able to solve this problem with variable weights of assets.

The two assets in a regular pool are matched 50:50 in value, but in BLBP, the weights change over time, creating downward pressure. When the pool goes live, the price will start to drop.

The value of those tokens must still match the weight when the number of tokens in the pool decreases. That’s why the price of the tokens will rise to compensate. The price of the token goes down gradually, which can match the cycle of the recovery of the token.

Theoretically, Illuvium is able to fairly distribute up to 1,000,000 unlocked tokens and list them at an initial price of $50 per token by using Balancer’s smart pool.

• The Initial pool weight ratio: 96:4
• Final Pool Weight Ratio: 50:50
• Time Span: 72 hours
• Progress: Linear

How to stake Illuvium (ILV)?

Users who stake ILV can earn rewards in two different ways:

1. Obtain ILV or sILV2 through liquidity mining. The lock-in period for ILV rewards is 12 months, but users can earn sILV2 and use them in-game immediately.

2. Obtain ILV via income distribution. In Illuvium, Ethereum players’ spending can be used to buy back ILV, which is then distributed to stakers. This mechanism will go live when the game launches.

To stake ILV, users need to transfer ILV to an external wallet that can be connected to the user’s one, such as Metamask.

Conclusion

The launch of ILV and the decentralized finance (DeFi) staking platform, as well as the promotion of the excellent game, have helped Illuvium gain popularity and increase ILV trading volume. The price of Illuvium has also shown solid growth momentum since the launch of IIIuvium.

Though the ILV game has not yet been launched, the team’s actions and announcements made have brought good traffic to the project in terms of what users are concerned about, including the design of the Token model, and long-term lock-up rewards. Of course, the price of ILV soared, which sparked hot discussions about GameFi 3A masterpieces. It seems that GameFi is advancing towards better game performance. We can also look forward to the implementation of other projects in the follow-up industry.

Regarding operation, Illuvium based on Ethereum layer 1 will bring users a very bad experience. Illuvium currently adopts the Layer 2 scalability solution based on immutable X in order to make the game faster and reduce the cost of in-game financial transactions.

Illuvium is similar to other blockchain games such as Axie Infinity in terms of game mechanics, but it seems to have a better look, feel, and function. If it can make further breakthroughs in the GameFi ecosystem in terms of gameplay, this game may become one of the first batches that have truly covered the traditional game player groups.

More information:

Illuvium’s official website: https://www.illuvium.io/

Illuvium’s White Paper: https://docs.illuvium.io/

Illuvium’s Promotion: https://www.youtube.com/watch?v=mzT88eN4gts&t=1s