Platypus Launching own Native Stablecoin USP
Platypus Launching own Native Stablecoin USP the new currency is a USD-pegged over-collateralized stablecoin that provides additional price stability.
Why Platypus Launching USP?
By using stableswap TVL as LP collateral, Platypus Launching own Native Stablecoin USP they were able to significantly increase capital efficiency. Platypus is a system that can combine stableswap and stablecoin, which offers them the possibility for optimal capital efficiency.
Platypus can always liquidate collateral to any other stablecoin apart from USP, through liquidation routing. Think of LUSD — it’s quite similar.
How Does it Work?
- Stage one mints USP stablecoins using Main Pool LP tokens! Users can continue to farm on Platypus liquidity pool with their LP tokens.
- USP’s coverage ratio in the Main Pool will determine the borrowing interest rate.
- All actions from deposit and farming to minting and liquidation happen on Platypus Finance only and smart contract risk is minimized
- Each token has different collateral factors
- Users can enjoy up to 20x leveraged farming
How USP pegs maintained?
Platypus stableswap AMM and interest rate model sustain the peg. The key in maintaining USP peg is the solvency of the balance sheet.
Final Thoughts
Platypus values capital efficiency for the economy and its people. Our native stablecoin (USP) allows LPs to leverage their holdings by using issued USPs for further investment.
About Platypus
Platypus Finance is a stable cryptocurrency single-side AMM on the Avalanche blockchain (ERC20 tokens).The protocol’s smart contracts promote security, self-custody, censorship resistance, and capital efficiency.
SOURCE: https://medium.com/@Platypus.finance/platypus-to-launch-native-stablecoin-usp-d68906da25b5
