StableSwap : The Classic, and The Vanguard
Platypus is born to challenge the status quo for StableSwap.
We keep on saying we’re a “pioneer”, and Platypus is “re-writing DeFi rules.” Well, how far have we gone? To answer your question, we will compare Platypus with existing StableSwaps / AMMs below.
Platypus and the rest: how they differ
- Shared Liquidity
The first-generation AMM usually comes with closed-liquidity pools. Liquidity between separated pools are not shared, and that’s where liquidity fragmentation arises.
Consider the following case:
When a user tries to swap USDT to DAI, the slippage is calculated by holding the invariant between the liquidity in the USDT-DAI pool. Using the classic StableSwap invariant and assuming A = 100 will give us 0.05% slippage.
In Platypus, liquidity for all tokens are shared. The pool in Platypus will look like:
Under the Platypus mechanism, the slippage will only be 0.01%. While one can always cherry pick the parameters to make the slippage looks lower, one main reason for Platypus’ improvement is due to the fact that the USDT’s liquidity between the two closed-pools are now shared. By doing so, less slippage incurs.
2. Flexible Pool Composition
Multiple assets integration wasn’t possible (or at least, very difficult) in first-generation StableSwaps. For example, the base 3 CRV token cannot extend beyond USDT, USDC and DAI.
It’s down to the mechanism. Existing StableSwap invariant’s equilibrium state is defined when all the tokens inside the pool need to have the same amount of liquidity. If one of the tokens is significantly smaller than the other in terms of its organic supply, the whole pool’s equilibrium liquidity is pulled down.
As a result, when adding more tokens to pool, Curve has a complicated pool compositions comprised of pairing up the 3CRV LP token with the new token (e.g.: MIM):
The Platypus liquidity pool composition gives room for flexibility. Our equilibrium state is defined by the same coverage ratio instead of the same liquidity. Assets in the pool are allowed to scale naturally based on its organic supply and demand.
3. Single-Sided Token
Liquidity provision is made simple in Platypus. Users can always deposit and withdraw tokens of the same kind without worrying about the pool compositions or size, or even the difference between token and LP token.
Therefore, we name the Platypus design as an Open Liquidity Pool.
Platypus: A Whole New World
Our whole new protocol is thoughtfully crafted against existing StableSwap limitations. Platypus innovates a new mechanism, pool design and user interference.
A brand new StableSwap on Avalanche, trading in Platypus means lower slippage, higher capital efficiency and greater asset scalability. We believe these benefits will make us a dominant native StableSwap on Avalanche in no time.
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 community members. So stay tuned, join us, let’s shake things up!
