Decentralized finance has been a major point of interest for the crypto space over the past year. To that end, Platypus, the Avalanche X Scholarship winning project, aims to be the most scalable, capital-efficient, and easy-to-use StableSwap ever built on Avalanche.
The problem with previous stableswaps
As with any other new technology, DeFi products like StableSwaps leave plenty of room for growth and development for the benefit of the user. With a novel liquidity pool design, Platypus aims to provide comprehensive solutions to the most pressing issues for stable swaps, namely liquidity fragmentation, sub-par user experience and heavy penalties for completing individual token transactions.
What is platypus?
Platypus aims to become the AVAX based reference stable swap platform. The protocol is designed to address the above issues and to provide all trades within the cryptosphere with a more powerful DeFi protocol that offers less slippage, greater scalability and a far better user experience than ever before.
The value proposition
To better show why Platypus excels at its design and has a truly unique value proposition, it is worth looking at older Stableswap logs and better understanding the team’s progress.
First, most older generation stable swaps operate on a closed liquidity pool model, which means that liquidity is not split into separate asset pools, which leads to liquidity fragmentation. In addition, the price slide is calculated taking into account the invariant of this specific liquidity pool. With Platypus, however, all of the token liquidity can be split between the assets of a pool, effectively increasing the liquidity depth and reducing slippage.
Second, the design of the older stable swap made it more difficult or even impossible to integrate new assets. As with traditional stable swaps, this is the case; Tokens must be subject to a very strict equilibrium mechanism in which all assets within the pool must have the same amount of liquidity in order to complete a swap.
The key to Platypus’ innovation lies in its unique interpretation of the liability concept that has not previously been explored as extensively by other AMM protocols. This type of approach redefines the concept of equilibrium based not on liquidity but based on coverage ratio so that the assets within a liquidity pool can grow organically based on supply and demand.
The benefits of using Platypus are numerous, from a far better technology and UX experience that is easy to use even for inexperienced traders, to its groundbreaking open liquidity pool design that enables the scalability of Stableswap.
The ease of trading that such a platform offers would make Platypus a favorite in the crypto ecosystem and thus have a positive impact on scalability.
A growing community
Despite being a young project, Platypus enjoys the attention of an enthusiastic community that is expanding seamlessly. Recently, the user base that can be found on Twitter, Telegram, and Discord has exceeded 10,000 members for each of the platforms and engagement is more present than ever. Platypus is working to further expand its community through updates and developments related to the project, but also through competitions designed to consolidate the community’s identity in the crypto space, while maintaining a constant active interest in Platypus
Why Avalanche (AVAX)
AVAX is a novel layer-one blockchain developed by Ava Labs that impresses with the ease with which developers can create dApps. This blockchain choice is supported by several aspects of Avalanche that fit perfectly with the vision of the Platypus team.
Avalanche is a lightning fast, inexpensive and environmentally friendly ecosystem. These advantages make up the perfect setup for greater scalability and stability, which are some of the key achievements of Platypus.
The team behind Platypus consists of real experts in the blockchain industry, each with many years of experience. The team is innovative and remains true to its goal of improving some of the most pressing problems for DeFi as we know it.
For those who, in the meantime, would like to look for more information, the Platypus online platforms can be accessed via the following link: https://rittenr.ee/platypusdefi
Further details are to be announced in the next few weeks.