The Platypus Finance protocol is a single-side AMM (decentralized exchange) designed for exchanging stable cryptocurrencies (ERC20 tokens) on the Avalanche blockchain.
The protocol is implemented as a set of smart contracts; designed to prioritize censorship resistance, security, self-custody and maximum capital efficiency. Platypus features single-token provision, eliminating impermanent loss risk for liquidity providers, and minimizing slippage for traders.
The key concept underpinning Platypus’s design is asset liability management (ALM). Most DeFi protocols today do not use the concept of liability. By introducing the concept of ALM, Platypus allows each token to grow organically based on its natural supply and demand. This is notably different from Curve or Saddle which requires all tokens to have the same liquidity, thus making the least popular token the bottleneck for the growth of the pool. We refer to this design as “Extendable Liquidity Pool”. This design also allows Platypus to enjoy other benefits such as a method to track its financial health, ability to lend out idle assets, enabling of new stablecoin solutions, and removal of impermanent loss.