We have previously covered Platypus Finance – a native stable swap for Avalanche build on some unique logic (you can read more about its difference from more traditional DEXes in our article and also be sure to check out our coverage of their differences with Curve for more context). However, the whole game was put on its head with the newly released “PTP wars” or “Platypus Party” as it’s officially called.

What is Platypus Party and who is Partying?

Platypus rewards Liquidity Providers with its native PTP token giving around 6-7% APR on stablecoins, which is already quite good. However, people looking to improve their yield can stake their PTP coins and receive vePTP in return. Holding vePTP gives a massive boost to returns and allows for APR of up to 35%, but those returns come at a price and that price is having a massive (sometimes 50%) exposure to the PTP, as depositors lose all their vePTP even if they unstake some of it.

Protocols participating in the Platypus Party are set out to solve this problem: even though exact mechanics are different between them they all hold and accumulate vePTP in perpetuity to give LP depositors the best APR. In future when vePTP will have more features such as voting rights for adding new coins and pools to Platypus those protocols will be able to offer even more benefits (e.g. bribes). At the moment there are three partying projects: Yield Yak, Echidna Finance and Vector Finance.

YieldYak

If you are an avid Avalanche user you probably have heard about YieldYak before, they are the biggest yield optimiser on the network so it is no surprise that they want a piece of the PTP pie to offer their users the best returns. They plan to do that by committing 250k of PTP over the 18th month and reinvesting 10% of the profits back into vePTP, additional tokens are acquired from users that exchange their PTP for yyPTP.

On YieldYak:
LP depositors grow their position as 80% of boosted PTP rewards are sold for stables.
PTP providers get 10% of PTP revenue, YAK rewards and future Platypus fees

Echidna Finance

Stablecoin / LP Token Model

Echidna is a new protocol developed specifically for Platypus. It acquires PTP by aggregating it from users and offering them liquid ecdPTP in exchange. They can then stake their ecdPTP to receive a share of ECD emissions, ECD is then can be locked for up to two years to receive a share of the platform’s revenue in PTP. Similar to Yield Yak portion of the revenue is locked for vePTP to additionally increase the APR.

On Echidna Finance:
LP depositors get 80% of boosted PTP rewards.
PTP providers get ECD tokens that can be locked to acquire 10% of revenue and future Platypus fees.

Vector Finance

Vector is another new protocol developed specifically for the Platypus Party by Magnet DAO’s team. Its approach is similar to Echidna’s, but the tokenomics are “flipped” so that investors who exchange their PTP for xPTP (Vector’s wrapped version similar to yyPTP and ecdPTP) and stake it receive the majority of platforms’ revenue and LP providers get project’s native token – VTX. Vector then distributes the remaining PTP revenue to people locking their VTX for 16 weeks.

On Vector Finance:
LP depositors get VTX tokes that can be locked to receive ~29% of the revenue.
PTP providers can stake their xPTP to get ~79% of the revenue.

State of the Party

The platypus party has just started and we are still waiting for all the participants to arrive but we have already seen it have a large impact on Platypus (+34% in TVL and +35% in price of a token in the last 7 days) and the wider ecosystem. We are still waiting for YieldYak to deploy their strategies with Vector already accumulating ~1.3M PTP and Echidna pulling slightly ahead with ~1.4M tokens under control, so far ecdPTP has been more successful trading at a 17% premium to PTP while xPTP at the time of writing is worth 0.94 PTP. However, it is still very early to crown a king of a party and the whole landscape might change very soon.

1 comment
Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.