What Is Platypus Finance (PTP)? Complete Guide Review About Platypus Finance.

What Is Platypus Finance (PTP)?

Platypus Finance provides a technical discussion of Platypus’s liquidity mining design. The design has referenced Curve’s veCRV setup, but with different inner mechanics, with the aim to prevent mercenary capital. In short, a new token vePTP, which is not transferable nor trad able, is introduced. Staked PTP token can yield vePTP which can be used to boost the APR with provided liquidity.

A higher coverage ratio leads to a higher adjustment factor and hence a higher weight and more rewards delivered to the stable coin account. If a certain stable coin on Platypus’ pool has a lower interest rate, the higher rewards delivered can incentivize the demand for this stable-coin. More users would swap for it and deposit it on Platypus Finance.

Platypus Finance Storage Key Points

Tokenomics

Team and advisors token are locked for first 12 months,and subsequent linear vesting in the next 30 months. Treasury token has 5% initial unlock, then 6 months cliff and subsequent 36 months linear vesting. Platypus Finance liquidity has 50% initial unlock, then 6 months cliff and subsequent 6 months linear vesting. Base Pool, Boosting Pool and AVAX-PTP Pool (Pool 2), which respectively account for 30%, 50%, and 20% of the aggregate allocation. The percentages can be changed in the future by the team, or via voting after governance is enabled.

Terminology

The following introduces the key concepts and terminology covered in this paper. Readers may consult Platypus Finance another yellow paper for a detailed technical discussion of its design as a stable swap-focused automated market maker (AMM). In essence, Platypus incorporates the concept of asset liability management, adopting coverage ratio as the key input parameter. In its system, each stablecoin i has an independent account.

For each account, the liability Li represents the liquidity of stablecoin i supplied by depositors, while the asset Ai stands for the current amount of Platypus Finance held by the protocol. The corresponding coverage ratio Ai/Li measures the account’s default risk. The PTP tokens supplied through the Base Pool and the Boosting Pool are ultimately allocated to the stablecoin depositors, who are also known as liquidity providers in the protocol.

Boosting Pool

The Boosting Pool differs from the Base Pool in that its liquidity emission is subject to staking of PTP tokens. In the Boosting Pool, depositors have to stake PTP tokens to mine PTP tokens. While new issuance tends to dilute a token’s market value with its enlarged market supply, the staking requirement offsets such impact through restricting its market supply.

Base Pool and other depositors

In most cases, the equal capital distribution that can maximize the return of the Boosting Pool does not exactly maximize the total return. Platypus Finance The optimal capital distribution for maximizing the total return of a deposit is impacted by factors other than the depositor’s individual budget constraint, including the return of the Base Pool and other depositors’ weight shares and capital distributions. Still, depositors tend to earn higher total returns by making their deposit sizes comparable to the value of PTP staked.

Compared to depositing all capital

The bottom line is that, as compared to depositing all capital as Platypus Finance to solely gain rewards from the Base Pool, a user tends to gain a higher total return by allocating a proportion of his/her capital as staked PTP, such that the increase in return from the Boosting Pool outweighs the decrease in return from the Base Pool. Proof This proof aims to show that, assuming all users except user x are allocating equal distributions of their capital on stablecoin deposit and staked PTP, user x can gain a higher return by following the equal distribution, compared to allocating all his/her capital to stablecoin deposit.