We have followed Platypus Finance very closely since the launch of the platform, and it just seems to get more and more interesting. More and more projects are interested in using Platypus Finance to boost the rewards of their own users, and this is absolutely heading in the direction of what will be known as the Platypus Wars.
First of all, you can find the Platypus Finance website at https://platypus.finance/. When you visit the website, it seems like a place where you can stake your stablecoins and receive an interest in PTP tokens in return. If you stake your PTP tokens, they will generate vePTP tokens, which will give you access to boosted interest on your stablecoin deposits. The more vePTP you have generated and keep in your wallet, the higher the boosted rewards will become. As a result, you can actually get a stablecoin interest above 100% if you own and stake enough PTP (which generates vePTP) and you stake some stablecoins.
- If you want to learn more about Platypus Finance and how you can use the platform, check this article.
But, how will this lead to the Platypus Wars? What is it all about?
Welcome to the Platypus Wars
If you have $10,000 worth of DAI in your MetaMask wallet, that is very cool. But, wouldn’t it be cooler to get a 10% interest, or maybe 20% or 30% interest, instead of just storing them in your wallet?
If you stake them on Platypus, without owning any PTP tokens, you will receive an interest of 6% at the moment.
In order to boost your interest, you could buy a lot of PTP tokens and stake them on the platform, but that might feel complicated (and expensive) to some. And this leads to the Platypus Wars.
Vector Finance, Echidna Finance, and YieldYak are all planning on taking advantage of the Platypus platform. How will they do that?
All these platforms will buy a giant portion of PTP tokens and stake them on Platypus Finance. This will give them a giant boost on all the deposits they do to Platypus Finance. So, when you go to YieldYak and deposit your DAI tokens on the platform, you will receive a yield from Yield Yak of 100% (at the moment). But, imagine YieldYak owning lots of PTP tokens, meaning that your deposited DAI tokens can be boosted at Platypus Finance, meaning that YieldYak will receive much higher interest on the Platypus Finance platform based on your deposit.
This makes them able to raise the promised APY on your deposits to the platform, and thus, it will attract even more investors who would like to get a higher interest on their stablecoins.
Yield Yak tweeted about this and how they imagine the cooperation to work at the moment in January, and they described it all with the following image.
Echidna Finance is going to operate with a project quite similar to what is planned by Yield Yak. They released a fairly detailed post on Medium on February 8th describing their plans.
This sounds very similar to Yield Yak, and it also reminds us a lot about Convex and what Convex is doing in the Curve Wars.
This is a project launched by the team behind MagnetDAO, one of the rebase tokens that is a part of our rebase-token experiment. MagnetDAO hasn’t been a big success yet and it has mostly followed the general trend when it comes to price decline among the rebase tokens. But, the developers are now working hard on Vector Finance, a platform that is meant to magnify your stablecoin yields.
Since Vector Finance is built by the developers of MagnetDAO, MAG token holders will enjoy certain advantages, and hopefully, this partnership/relationship between the two protocols will be fruitful for both. In what way will this relationship work? Below you can see an image posted in the MagnetDAO Discord channel.
If we had to just quote what we consider to be the most important information from the Discord post above, we would say this is the essence:
Vector is a protocol built on the top of the Platypus platform which enables users to amplify the yield on their stablecoins. We are able to do this by aggregating PTP on Vector and staking it forever, accumulating vePTP. This will allow our stablecoin depositors to take advantage of boosted APRs without having to own PTP themselves. PTP holders will be able to benefit from Vector by converting their PTP into xPTP – a token which receives a significant portion of Vector’s revenue.
The Magnet treasury, as well as MAG stakes, will receive a portion of the initial VTX token supply. VTX will be the governance token for Vector. More detail to come on the distribution which we can’t announce just yet, but rest assured, MAG holders are the top of mind for us.
In other words, Vector Finance will be quite similar to Echidna Finance and Yield Yak, but it will bring extra rewards to MAG holders and those already invested in MagnetDAO.
The Platypus Wars is on!
What is this information telling us? The battle is on! All the platforms taking part in this battle will have the interest of acquiring as much PTP as possible in order to get higher interest on any stablecoin deposit on the Platypus Finance platform. Not only will they try to acquire as many tokens as possible, but they will also stake more and more, in order to keep the high interest coming. They will have to sell some PTP in order to share interest and the promised APR to the investors using their native platform (Echidna, Vector, Yield Yak), but this will still mean that the buy pressure for the PTP token will increase and the sell pressure will decrease.
It might take a little while for this to really set in, also considering that early investors and VCs still hold quite a lot of tokens and some of them will only be “released” in the months to come, but still, this sounds really promising for the future of the Platypus Finance platform and to the future of PTP holders.
What do you think? Are you ready for a Platypus War?