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What makes the PTP token so attractive to hold (Platypus Finance)?

Platypus Finance is an innovative platform built on Avalanche, ideal for swapping one stablecoin to another, and ideal for storing and staking your stablecoins in order to enjoy high interest rates. But, what makes it so interesting? And what is the deal with the PTP token making it so interesting?

We have already written an article about Platypus Finance, so if you want to learn more about the protocol in general, we suggest that you read that article as well.

But, what makes the PTP token so interesting? Why is it a token worth holding for investors? Why do we consider this a token with great potential?

This is not financial advice. Do your own research, and never invest money that you cannot afford to lose!

platypus finance interest

What makes the PTP worth holding long-term?

Why should anyone buy PTP tokens? And what gives you an assurance of the fact that people will not just dump the token, but rather hold their tokens?

There are currently two ways in which you can get the PTP token.

  • You can buy it from an exchange.
  • You can stake stablecoins on Platypus Finance and receive PTP as staking reward.

But, what will inspire and encourage those with PTP tokens in their wallet to keep them and not just sell them? What is the purpose of the PTP token?

  • If you stake your PTP tokens on the platform, they will generate vePTP, which will give you a reward booster on your stable coins. Instead of getting “only” a 5-7% APR on your stable coins, you can get a boosted APR of more than 100% if you hold PTP tokens.
  • When you stake PTP tokens, vePTP tokens are generated. The more vePTP tokens you own, the bigger the interest boost will be.

In other words, it is in the interest of anyone with stablecoins on the platform to own as much PTP as possible, which again will generate vePTP tokens.

You are punished for removing PTP tokens from the platform

This is one of the interesting things that makes the PTP token worth holding, and not selling. If you stake 1000 PTP tokens on the platform, or maybe 50, or maybe 50,000, you will receive vePTP rewards all the time. vePTP cannot be traded, it is only generated by staking PTP on the platform.

And here comes the key.

If you ever unstake your PTP tokens from the platform, your vePTP holdings will be depleted to zero. You will then start “earning” vePTP over again with whatever remains on the platform of PTP holdings on the platform.

But, if you enjoy boosted interest on your stablecoins on Platypus Finance, why risk losing a fantastic interest by unstaking PTP? It isn’t worth it, at least not if you have a lot of stables.

The good thing is, the whales who own a lot of stables and the ones also owning a lot of PTP. They might sell their rewards, but they will most likely keep their staked PTP tokens. And that is what will cause stability to the token price, and as people discover the possibilities of the platform, also increase the demand for the token.

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