This article is about what is Platypus Finance. Decentralized finance is a rapidly-evolving field, and new projects and platforms are emerging frequently. There are different platforms on different networks and in this article you will learn a decentralized exchange protocol built on the Avalanche blockchain.
What is Platypus Finance?
Platypus Finance is the largest stable coin swap exchange on the AVAX network. They offer very slow slippage and low fees to swap between USDT, USDC, DAI and MIM on the Avalanche network. The protocol uses a first-of-its-kind open liquidity pool stableswap, which allows for single-sided liquidity provision and eliminates impermanent loss risk for liquidity providers. The protocol is implemented as a set of smart contracts, prioritizing censorship resistance, security, self-custody, and maximum capital efficiency
Platypus Finance Yield Farming
The Platypus Finance protocol provides great yield farming opportunities thanks to their popular stablecoin swap. If you deposit a stable coin like USDC or USDT, you will be able to earn a yield paid on PTP that is a reward for users swapping on the platform. This is a way to redistribute protocol revenue to investors who provide liquidity to the Platypus stable swap. You can also get boosted yields with vePTP staking.
Platypus Finance vePTP
vePTP is a feature of the PTP protocol that acts as a yield booster to maximize earnings and gives users the right to vote and decide PTP emissions. It is a non-transferable and non-tradable asset that is locked in the user's private wallet. Users can obtain vePTP either by staking PTP or by locking PTP. By staking PTP, users can receive vePTP every hour and the maximum amount of vePTP received is 180 times the amount of PTP staked. Locking PTP also allows users to earn vePTP, with a multiplier of 0.336 vePTP per day, and a maximum locking period of 357 days.
Holding vePTP allows users to participate in airdrops and fee sharing, and they can extend their locking period as long as it does not exceed 357 days. However, users will lose all their vePTP if they unstake or unlock their PTP. Users must also unvote on the gauges before unlocking their PTP, if they have already voted.
What is the Stablecoin of Platypus Finance?
USP is a stablecoin created by Platypus Finance that is used to maximize capital efficiency for liquidity providers on the platform. It is minted by using LP tokens deposited into the MasterPlatypus as collateral. Each collateral has its own collateral ratio and liquidation threshold can, and borrow up to their loan-to-value ratio. The minimum USP borrow amount is $200. and a borrowing fee of 0.3% is charged upon minting. USP also has a stability fee applied based on the coverage ratio in the Main Pool, which is used to maintain its peg to the US dollar.
Bottom Line
In summary, Platypus Finance is a decentralized exchange protocol on the Avalanche blockchain that offers great yield farming opportunities through their stablecoin swap, which provides a way to redistribute protocol revenue to liquidity providers. This article discusses about what is Platy.
