Vector Finance provides users with increased returns on Platypus stablecoins without the need to own a PTP token. PTP holders can benefit by converting their PTP to xPTP to get a share of Vector's profits.
About Vector Finance
To understand how Vector Finance works, it is important to understand Platypus Finance. Platypus, recently launched on the Avalanche network, is a low fee, low slippage platform for stablecoin swaps. It uses a unique single-pool liquidity structure that delivers a better user experience, reduces slippage and improves scalability. Platypus also has extremely unique tokenomics: by holding PTP and staking, users can earn increased returns while providing liquidity on the platform.
To access increased earnings, users must own PTP and wager to receive vePTP. vePTP accumulates over time, and once any amount of PTP is withdrawn, the vePTP user's balance is reset to 0. vePTP also helps to vote on important Platypus governance decisions, such as which stablecoins to stimulate yield and which tokens are added to the protocol.
Other features:
| 1 | Deposit your stablecoins. |
| 2 | Earn higher returns with Vector's accumulated vePTP balance. |
| 3 | Get rewards in PTP and VTX. |
Vector allows users to earn higher returns on their stablecoins even if they don't have PTP. Vector can do this by aggregating PTP from users who choose to convert their PTP to xPTP. In doing so, Vector also reveals the utility of the PTP token: users who convert their PTP to xPTP receive a large percentage of all the revenue, generated by the protocol. This improves capital efficiency and expands the Platypus user base.
In the future, Vector may extend its usefulness to other projects that use “ve” type tokenomics, such as veJOE.
Why should you pay attention to this defi app?
Vector allows stablecoin savers to earn higher PTP returns without having to wager PTP themselves. PTP holders earn income by converting and staking xPTP. Vector provides a lot of flexibility for users. By accumulating PTP and never selling it, a large vePTP balance is created, which will be very effective in achieving increased earnings and allow members to enter and exit as they please without having to worry about resetting their vePTP balance.
Vector unlocks value from voting rights, accumulated via vePTP. Most users are reluctant to participate in governance, but large organizations, DAOs and whales care a lot about voting and will likely be willing to pay for votes in the future, creating significant value for the VTX token.