In a new development today, prominent DeFi platform, Platypus has launched its protocol stablecoin, USP on Avalanche. In a thread of Twitter posts today, the DeFi platform announced that the stablecoin will provide users with various ways of earning passively.
As revealed, vePTP holders are bound to enjoy rewards in the USP pool as Platypus aims to revolutionize users’ experience through its stablecoin and stableswap fusion. More so, in the posts, the protocol said the invention of the USP stablecoin will eliminate idle funds and capital fragmentation.
Additionally, Platypus said the latest development will provide traders the privilege to maximize their capital efficiency. The DeFi platform indicated that for traders to maximize their capital, they’ll need to turn their staked-assets into liquid form. Therefore, aiding them to earn rewards from farming.
Likewise, the annoucment indicated that both minting and collateral are based on a sole platform. With that, Platypus stated that users are immune to enduring some risks relating to smart contracts. More so, using a single platform for minting and collaterals protects users from suffering impermanent loss.
Notable side note about Platypus and USP
In a December 1, 2022 Blog post, Platypus explained how the stablecoin is designed to maintain its peg. The team stated that the USP stablecoin maintains Its peg through an Adaptive Peg Stabilizer. Accordingly, the stablecoin peg is conserved by the Platypus stableswap AMM algorithm and interest rate system.
Further, the team established that the solvency of the balance sheet is the main key that helps maintain the USP peg. In the blog post, the team established that the USP over-collateralized. More so, Platypus said the stablecoin gives an extra layer of security from the unwanted swings other stablecoins are subject to.
The firm disclosed that from time to time, it’ll publish the balances of every UPS in circulation and their collateral assets on its dashboard. Thus, aiding Platypus to establish itself as a transparent DeFi project. Worth noting that Platypus can always liquidate collateral to any other stablecoin apart from USP, through liquidation routing.
Following the release of USP, Platypus revealed that it’ll be launching another feature on its platform soon. As revealed, the DeFi platform said it will be providing a BTC borrowing initiative soon. The firm divulged that the service will provide its users the opportunity to take out loans using BTC.