I created an ARPG using Unity in my free time. All the art is FPO as I mainly focused on game design and mechanic testing. The game features a fairly complex loot and equipment system. The equipment system draws heavy influence from games such as The Division and Destiny 1 & 2. There are multiple tiers of weapon quality: gray, green, blue, purple, gold, and exotic (peach).
The game also features a smart loot system where loot drops based on your current Power (an aggregate number derived from the average Power of all your gear). The different quality / color of gear is tiered based on certain Power ranges, so you won't get gear that's very far above your current Power.
Loot dropped is a controlled random system so you will generally get gear that should improve your Power score. Also, the loot takes into account the loot you've recently recieved so that you don't get the same type of gear multiple times in a row, this allows for a more even Power spread and better sense of progression.