Thread by @BarryFried1

@CurveFinance $CRV on steroids?

Let’s dive into @Platypusdefi, and how they’re making stableswaps even more efficient 🧵👇
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Traditional AMM stableswaps like Curve suffer from liquidity fragmentation.
Since there are so many different stable pools, liquidity isn’t as deep as it could be. (Spread out across multiple pools)
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In addition, LPers deposit LP tokens made up of two different stable assets, whatever they may be.

Even though both assets are relatively equal in price, if one token gets exploited or loses its peg, you’ll suffer from major impermanent loss!
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@Platypusdefi has come up with solutions to these problems- using ALM (asset liability management).

Users can provide one-sided liquidity (USDC, USDC.e, USDT, USDT.e, or DAI, on the Avalanche network) and receive $PTP tokens (more on that later).
app.platypus.finance/pool
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How does this work?

In normal stablepools, there must be equal amounts of liquidity across all stablecoins in the pool, making the least popular token the bottleneck for the growth of the pool.
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With @Platypusdefi, stablecoin liquidity grows based on supply and demand, through coverage ratios! (asset/liability=% covered, liability meaning the amount deposited)

Platypus incentivizes convergence towards equilibrium and penalizes divergence through slippage fees.
How?
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1. Those who swap from a stable asset with too much liability (too many LPers staking relative to demand) will be rewarded extra tokens through slippage!
Liquidity from the asset with too many depositors will flow to an asset that needs more liquidity.
This is efficiency.
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Here’s an example. If one were to swap from $USDT to $USDC.e, they would receive positive slippage, because the liquidity (liability) would move from $USDT to $USDC.e, upping the $USDT coverage ratio, while lowering the $USDC.e ratio, incentivizing equilibrium.
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This allows for extremely low amounts of slippage, as liquidity is being used to its full potential!
Even on a 10 million dollar swap, there’s a positive price impact ;).
The .1% “haircut” fee goes to LPers.
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2. Pools with higher coverage ratios will receive higher $PTP APRs, as seen above.

Now what about the $PTP token utility?
Similar to $veCRV, $PTP stakers receive $vePTP, boosting $PTP APR! More features coming to $vePTP soon!
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Staked $PTP will generate .014 $vePTP per hour, taking about 10 months to reach the $vePTP cap of 100 times the $PTP staked, giving the highest possible $PTP APR!

If you unstake your $PTP, you will lose ALL of your $vePTP, dropping your APR. Talk about lockup incentives👀
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Obviously, there’s a race between protocols to acquire the most $vePTP, called Platypus wars (just like Curve wars, won by Convex).

Not going to go so in depth here, but as of now @echidna_finance and @vector_fi are the leading Convex-type projects.avaxholic.com/platypus-finan…
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https://twitter.com/rossboothr/status/1501648244538953734

The TVL on Platypus is 1/20th that of Curve🤯, while the $PTP token has a 14x smaller mcap than $CRV.

We’re gonna see billions of dollars deposited into Platypus and $PTP tokens, as depositors chase their highest possible yield.
Don’t sleep on @Platypusdefi 🚀
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Thank you for reading
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@BarryFried1
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