With an unrestricted liquidity pool stableswap and one-sided liquidity supply, Platypus reshapes the idea of liquidity balance, enabling for the addition of fresh assets, the expansion of utility cases for one-sided LP tokens, and the supply-and-demand-driven development of assets.
Platypus additionally employs its capital to produce stablecoins — its unique selling proposition – with all of these advancements neatly packaged in a streamlined user experience. USP also addresses stablecoins’ long-standing collateral concerns. The intrinsic Platypus Finance stablecoin was created to eliminate the splitting of liquidity and dispersion of assets that are inherent to several protocols.
USP is tied to the US dollar and functions as an overcollateralized stablecoin with a distinct ‘responsive peg stabiliser’ that offers a degree of protection in the event of depegging. The value of the coin is automatically maintained via the Platypus stableswap AMM algorithm and coverage ratio framework.
The native stablecoin of Platypus significantly improves the capital productivity of Avalanche DEX users. It makes use of one-sided collateral and affords consumers less smart contract danger, allowing them to relax. By collateralizing their LP coins with a maximum of 20 times leverage, users may earn USP. In this manner, investors may use their USP as a liquidity providing asset and eventually boost their earning capacity.
USP may first be generated in the primary pools LP and will later extend minting chances to the secondary pools LP. The USP advantages consist of the following.
- Maximizes capital efficiency – Users are able to generate USP utilizing LP tokens as collateral on Platypus Finance and convert staked assets into cash.
- Allows 20 times leverage farming — By repeatedly minting Platypus, leverage farming is enabled a maximum of 20 times.
- Reduces smart contract risk — Minting and collaterals are powered by a single platform, which significantly decreases systemic risks.
- Utilizes single-sided collateral – Permanent, loss-free, one-sided LP collateralization permits more crypto token generating flexibility and risk management.
Platypus keeps growing with the introduction of USP as a follow-up to the platform’s ‘vote indicator’ system. The tool effectively allowed users the ability to direct PTP emissions via the gauge and collect bribes in exchange for their votes.