Platypus: The StableSwap to Redefine DeFi
Platypus has devised a whole new kind of StableSwap for enhanced capital efficiency, scalability and user experience. This pioneering protocol will be Platypus’ first major step in driving DeFi innovation in the Avalanche ecosystem.
Here we discuss why and how Platypus can solve the limitations faced by existing StableSwap.
Do We Need a Better StableSwap?
A BIG YES.
The existing StableSwap design inevitably results in higher slippage and subpar user experience, which subsequently hinders the protocol’s scalability and efficiency.
- Liquidity Fragmentation ➡️ Higher Slippage
Most existing AMM, including StableSwap, has closed liquidity pool design, means that liquidity between separated pools are not shared. Such liquidity fragmentation will inevitably lead to higher slippage - Complicated Pool Composition ➡️ Lower Scalability + Poor User Experience
Existing Stableswap has an equilibrium condition defined by where all tokens inside the pool need to have the same amount of liquidity. The consequence is that the least popular token in the pool will become a growth bottleneck, and hinder the scalability for the pool to expand into more tokens.
To cater for this, existing Stableswap requires pairing up LP tokens with new tokens. Such design is complex, leading to poor user experience and inflexibility to replace existing pools even when new assets emerged (think MIM versus DAI).
- Single Token Transaction ➡️ Heavier Penalty
Perhaps a lesser problem for retail users, but depositing and withdrawing with single-token using existing StableSwap may result in a large penalty when it is sizable compared to the overall pool size. For Platypus, no penalty (or only a small fee) will be charged even when you deposit or withdraw a single-sided token in bulk.
Rewrite The Rule
All of the shortcomings above will remain if no fundamental changes are made to the StableSwap design.
To challenge the status quo, Platypus has strived to devise a new mechanism that rewrites the rule of DeFi, and we will begin with a StableSwap on Avalanche.
Here we compare the first generation StableSwap with Platypus.
Platypus StableSwap : The Problem Solver
Perhaps what’s in your mind is “don’t bring me problems, bring me solutions.” No sweat, we’re on it.
Platypus is thoughtfully crafted against existing StableSwap limitations, as mentioned above. We hope to offer there critical benefits to the Avalanche ecosystem:
1.Lower Slippage
The groundbreaking single-sided open liquidity pool promotes higher capital efficiency hence resulting in lower slippage compared to existing StableSwap.
2. Higher Scalability
The Platypus liquidity pool composition gives room for flexibility and scalability. We can easily add or remove new tokens to the main pool, hence they are allowed to scale naturally based on their organic demand and supply. Besides, the UX is going to be greatly simplified when users don’t need to worry about these complicated pool compositions.
3. Better User Experience
The design of Platypus’ exchange is simple to use. Users can always deposit and withdraw tokens of the same kind without worrying about the pool compositions or size.
Where is Platypus Heading to?
To infinity and beyond.
It might sound a bit over the top, but StableSwap is just the beginning of our adventure.
In no time, Platypus is expected to be -
- the dominant native StableSwap on Avalanche
- A DeFi protocol that challenge the status quo
Evolve with Platypus
- Join our community on Discord, Twitter, Telegram
- To dive deeper into our endeavour, have a look at our yellow paper
- Visit our website
In the meantime, we’re preparing for the Platypus Testnet launch, together with token airdrop and a series of give-away programs for all our Puggles (a.k.a. baby Platypus :)) . So stay tuned, join us and shake things up!
