Summary: 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.
Their platform is modelled from the popular stablecoin swap Curve Finance on the Ethereum network, however they have added some interesting innovations. Most notably:
- Platypus Finance offers better slippage than Curve thanks to their optimized liquidity pools.
- Platypus Finance provides higher yields of up to 20% APY to deposit stablecoins like USDT or USDC.
- Platypus Finance is cheaper to transact than Curve Finance because it is on the Avalanche C Chain.
- The largest and most trusted stablecoin swap protocol on Avalanche.
- Best liquidity and lowest fees to trade USDC, USDT, DAI and other stablecoins.
- Secure and battle-tested smart contracts for their DEX.
What is Platypus Finance?
Platypus Finance is a decentralized exchange protocol built on the Avalanche blockchain, with a focus on stable cryptocurrencies (ERC20 tokens). 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 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.
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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.
Is Platypus Finance Safe?
Yes - Platypus Finance is an extremely safe decentralized protocol because they are backed by top tier investors like Three Arrows Capital, and have audits from the best security teams. There is currently over $1 Billion locked in the Platypus Finance protocol, which means it is trusted by large institutions.
If you need to get funds onto the Avalanche blockchain to use Platypus, read out ETH to AVAX Bridge Guide.
Platypus Finance Stablecoin USP
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, and users can 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.
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Final Thoughts
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. The protocol is implemented as a set of smart contracts, prioritizing censorship resistance, security, self-custody, and maximum capital efficiency.
The protocol's safety is backed by top-tier investors and has audits from the best security teams. Additionally, vePTP and USP are features of the Platypus Finance protocol that offer yield boosting and stablecoin collateralization options, respectively. By using LP tokens as collateral, users can borrow USP while maintaining its peg to the US dollar. Overall, Platypus Finance offers a suite of innovative and secure DeFi features that make it a top choice for investors and traders on the Avalanche blockchain.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
