Platypus Finance

The Platypus Finance protocol is a single-side AMM (decentralized exchange) designed for exchanging stable cryptocurrencies (ERC20 tokens) on the Avalanche blockchain. In contrast to AMMs like Curve or Uniswap it utilises single-variant function rather than invariant curves to calculate slippage and Extendable Liquidity Pools with Asset Liability Management (ALM) instead of traditional liquidity pool design to keep track of deposited assets.

History

Platypus Finance

Platypus Finance in alpha mode on the Avalanche C-Chain mainnet on 29th November 2021 with support for USDT, USDC, DAI, MIM stablecoins and maximum amount of deposits capped at $10 million.

The platform has moved to beta on 14th of January 2022, removing $10M cap and launching the liquidity mining campaign rewarding depositors with the native PTP token.

On January 27, 2022 the MIM pool became largely unbalanced as a result of users swapping it for other stablecoins. The platypus team has halted all. swaps, deposits and withdrawals to protect liquidity providers from a potential depeg. Trading on the other three coins was resumed during the same day with MIM being delisted from the platform indefinitely.

It was announced on April 6th, 2022 that MIM will return as part of the new Alternative Pool with two other decentralised stablecoins: UST and FRAX.

The first pool for assets not pegged to dollar was announced on 23rd of April 2022, allowing for swaps between AVAX and its liquid staked version (sAVAX).

Asset Liability Management

Platypus treats all deposited liquidity as a liability and coins actually held in a pool as assets. It therefore defines coverage ratio (r) as relation between assets and liability. The ratio is calculated for each token, if it is 1 (i.e., assets = liabilities) the pool is said to be in equilibrium, if it is < 1 the token is under-covered, if it is > 1 it is over-covered. To maintain the balance the protocols encourages trades that bring r closer to 1 and punishes those that increase the divergence.