Platypus' Stablecoin USP: What You Need to Know
The design of Platypus' USP stablecoin
CAUTION: USP suffered an $8.5M flash loan attack on February 17th, 2023. So please treat this article for educational purposes only.
The team is working on a plan to compensate for losses with $2.4M already recovered.
Platypus Finance, an Automated Market Maker (AMM) for pegged assets on Avalanche, has launched its stablecoin, $USP.
Here’s the full whitepaper here.
In this post, I’ll take a closer look at how the $USP stablecoin works and what sets it apart from other stablecoins.
Subscribe for reviews of innovative DeFi protocols
Platypus: AMMs for Pegged Assets
Platypus Finance is an AMM for pegged assets on Avalanche.
Similar to Curve, users on Platypus can swap among various stablecoins with low slippage.
However, its main difference from Curve is the single-sided liquidity provision to an open liquidity pool, which avoids liquidity fragmentation. This approach attracts liquidity and increases capital efficiency, which is key to the success of AMMs.
Token Rewards as a Short-Term Solution