Platypus

Market Making

Platypus is a decentralized exchange native to Avalanche focused on trades of highly correlated assets like stablecoins. It innovates upon the traditional stableswap concept with single-sided liquidity provision.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Platypus innovated upon Curve's stableswap automated market maker (AMM) concept to enable single-sided liquidity provision to eliminate impermanent loss.
What we like less
Platypus only pays liquidity providers (LPs) in its own native PTP token, which can be less desirable for users seeking to accrue the underlying liquidity tokens.
What it means for you
Offers you one of the top stableswap platforms for you to earn yield on stablecoins and tokenized assets with cheap gas fees on the Avalanche network.
Information
Exploit/Hacks
Several
Info
  • Website
  • Token: PTP
  • Tags: Market Making
Key Metrics
  • TVL: $446.3K (Rank #206)
  • TVL Ranking by Market Making: #0
  • Blockchain: Avalanche
  • Chain TVL
    • Avalanche: $446.35K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including Hacken and Omniscia
  • Anonymous team reduces transparency
  • Several documented protocol hacks
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
  • Playtypus is a single-sided stableswap AMM built on the Avalanche chain
Things to know about Platypus

How Platypus works

Platypus innovated upon the stableswap concept through the introduction of single-sided liquidity. The key concept underpinning Platypus' design is asset liability management (ALM). With a traditional AMM, users who provide liquidity receive LP tokens in return that represent partial ownership of a pool. Liquidity pools consist of two or more assets and trades against that pool by design adjust the balance over time. So when LPs withdraw their assets, they often receive a different amount than they originally deposited due to impermanent loss. With ALM, Platypus records the liability upon a user deposit and are given LP tokens that exact amount and exact token deposited. This allows each token to grow oragnically through supply and demand.

How Platypus makes money

Platypus charges a series of fees on its platform including swap fees (haircut) and deposit/withdrawal arbitrage fees. The haircut fee varies by pool and is used to support and incentivize the platform's operations. A portion of haircut remains in the AMM based on a retention ratio. The retention ratio is initially set at 100% so all fees collected remain with Platypus. Platypus implements a withdrawal fee to deter arbitragers from draining funds from the pool that can harm the protocol's long-term financial health. Similarly, the protocol also charges a deposit fee to counter such attacks.

How you make money on Platypus

You earn swap fees for providing liquidity on Platypus. Currently, all rewards are paid in inflationary PTP token emissions. When the retention ratio decreases below 100%, LPs will earn the difference in swap fees. You can also stake PTP (vePTP) to boost their liquidity mining rewards (paid in PTP).