An Introduction to Vector Finance
We are excited to announce the launch of Vector Finance! Vector provides users with boosted stablecoin yields from Platypus, without having to own the PTP token. PTP holders can benefit by converting their PTP into xPTP to earn a share of Vector’s profit. Vector is launching soon so get your PTP and stablecoins ready!
Understanding Platypus Finance
To understand how Vector Finance works, it is important to first understand Platypus Finance.
Recently launched on the Avalanche network, Platypus is a low-fee, low-slippage platform for stablecoin swaps. Platypus uses a unique single pool liquidity structure, which creates a better user experience, lowers slippage, and increases scalability. Platypus also has an extremely unique tokenomics: by owning and staking PTP, users can get boosted yields when supplying liquidity on the platform.
Since its launch in January, Platypus has grown very quickly, amassing over half a billion dollars in TVL. With the median APR for their boosted stablecoin deposits at ~32%, it’s easy to see why.
To get access to these boosted yields, users must own PTP and stake it to receive vePTP. vePTP accrues over time, and once any amount of PTP is withdrawn, the user’s vePTP balance is reset to 0. vePTP is also used to vote on important Platypus governance decisions, such as which stablecoins to incentivize yield on, and which tokens get added to the protocol.
What is Vector Finance?
Vector Finance is a protocol that symbiotically works with Platypus Finance.
Vector enables users to generate boosted yields on their stablecoins, even if they don’t own any PTP. Vector is able to do this by aggregating PTP from users who choose to convert their PTP into xPTP. In doing so, Vector also unlocks utility for the PTP token: users who convert their PTP into xPTP receive a large percentage of all yield generated by the protocol. This allows for better capital efficiency and a more diverse user base for Platypus. The Vector token, VTX, also unlocks the highly sought after voting power from PTP holders who may not be as interested in participating in governance, and allows users to share in the profit of the platform as well.
In the future, Vector may expand its utility to other projects which utilize “ve” type tokenomics, such as veJOE.
- Vector enables stablecoin depositors to earn boosted PTP yields without having to stake PTP themselves
- Vector enables PTP holders to generate yield by converting to and staking xPTP, receiving yield from protocol fees and VTX emissions
- Vector provides greater flexibility for users. By accumulating PTP and never selling it, we will generate a large vePTP balance — which will be highly effective for achieving boosted yields and allowing participants to come in and out as they please, without having to worry about resetting their vePTP balance
- Vector unlocks the value from voting power accrued via vePTP. Most users don’t feel strongly about participating in governance, but large institutions, 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
Vector for PTP Holders
- Convert your PTP to xPTP
- Stake xPTP to earn a share of the performance fees generated by the VTX platform
- Receive rewards in PTP and VTX
Vector for Stablecoin Depositors
- Deposit your stablecoins
- Receive boosted yields, thanks to Vector’s accumulated vePTP balance
- Receive rewards in PTP and VTX
Vector for Liquidity Providers
- Supply liquidity for PTP-xPTP and/or AVAX-VTX on Trader Joe
- Stake the LP tokens on our platform
- Receive rewards in VTX and stake that for a percentage of the protocol’s profit
The Vector Launch
The launch of Vector Finance is coming soon! Our code is complete and we have begun our audit process with Omniscia — the same auditor that audited Platypus’s smart contracts. We are also working with the Platypus team to get our contracts whitelisted.
Tokenomics? Launch Date? Audit Results?
All coming soon. Join our socials below and stay tuned for updates on these and more!