Avalanche [AVAX] has been at a forefront of several high-profile decentralized finances or DeFi projects. Among them is Platypus, the winner project of an Avalanche X grant, which aims to offer higher scalability, lower slippage, and a user-friendly stableSwap platform to have ever been built on the AVAX ecosystem. Noted DLT writer who goes by the Twitter handle CryptoSeq elaborates on the wide array of use cases of the DeFi protocol.
In the beginning, the post analyses the existing stableswap platforms such as Curve which is known to have closed liquidity pools that cause fragmentation as the liquidity of different pools can’t be shared with each other, resulting in higher slippage. This creates an obstacle as users are required to deposit multiple tokens within the pool with equal value and its rigid pool structure prevents users to add new tokens into existing pools, thus hindering the scalability of the protocol and providing a bad user experience.
In contrast to that, Platypus aims to build a new Automated Market Maker [AMM] on Avalanche with the following features – Open liquidity single-sided AMM managing risk autonomously based on the coverage ratio, allowing maximal capital efficiency. Single-sided open liquidity pools promote capital efficiency, resulting in significantly lower slippage. Additional assets can easily be added to the existing liquidity pool providing flexibility and scalability whilst offering a far simpler user experience.
Avalanche’s native project recent funding
Notably, Platypus recently secured $3.3 Million in a funding round led by leading hedge fund management firm Three Arrows Capital and Venture fund entity DeFiance, alongside other top-tier investors such as Avalaunch, CMS Holdings, or Hailstone. In addition to that, the platform on November 9, this year launched their alpha mainnet which restricted the total value locked [TVL] in the system to $10 million [which for the record was filled within 15 mins] and is close to launching a beta version soon.
In a nutshell, the post concludes on the note that the Platypus project sets the course to become the dominant stableswap on the Avalanche ecosystem. Despite being a young project, Platypus is enjoying the backing of an increasing enthusiastic community.