Temperature Check - Haircut adjustment (sAVAX, yyAVAX and ankrAVAX pool)

Temperature Check
1

Abstract
Adjust the haircut of sAVAX, yyAVAX and ankrAVAX pool to stay competitive

Motivation
To enhance the competitiveness of the swap of the liquid staking pools, we have to keep an eye on the ecosystem and to keep our haircut competitive.

Haircut is very vital to us because it is the major revenue source of our protocol. If our haircut is the lowest among all Dexs on Avalanche, we can gain more fees while most of the DEX aggregators suggest using platypus to route their assets.

Specification
Existing haircut for sAVAX, yyAVAX and ankrAVAX pool:
sAVAX: 0.03%
yyAVAX: 0.03%
ankrAVAX: 0.1%

Suggested haircut for sAVAX, yyAVAX and ankrAVAX pool
sAVAX: 0.02%
yyAVAX: 0.02%
ankrAVAX: 0.02%

Next Steps
If the proposal passes both temperature and consensus check, Platypus team will adjust the haircut accordingly.

References
N/A

Shall we adjust the haircut of sAVAX, yyAVAX and ankrAVAX pool?

  • Yes

0 voters

2

What are the aggregators that have integrated Platypus ?

I know Paraswap for SAVAX / AVAX and with the current commissions at 0.03% it is still the best

3

Paraswap, 1inch, and Yak Swap

4

1inch network doesn’t have sAVAX, yyAVAX and ankrAVAX… it only has wAVAX (before accepting the proposal it would be the case to implement them).

Furthermore, on Paraswap, the Platypus protocol is the best possibility of exchanging sAVAX/AVAX despite the current commissions.
Furthermore, it is not taken into consideration for the exchange of the yyAVAX and ankrAVAX tokens (only TraderJoe and PangolinSwap) therefore it would be the case that Platypus is first implemented and then only then to evaluate whether to lower the commissions.

2 Likes
6

Yes that makes sense, we will reach out to 1inch team and see if they can implement these LSD tokens first!

1 Like
7

Like you said, the haircut is our main income. Just to shrink it without a good reason is a very bad idea. We should dynamicly adjust the haircut to stay cheap, but if there is no competition, we also should rise our fee to get the most attractive revenue for all vePTP holders.

1 Like
8

TJ v2 is a strong competitor lol.

9

If there is liquidity Platypus is more efficient… the problem may just be low liquidity as large amounts traded can lead to an easily changeable coverage ratio which affects trades… it really depends on the TVL.

Furthermore, the problem of liquidity fragmentation is not felt during the bear market but could have a very negative impact on dexes such as traderjoe during the bull market as the TVL increases and they do not manage it in a single pool like Platypus.

10

Just took a glance and it seems like the TVL of these pools are higher on Platypus.
TJ v2 has barely any slippage because they’ve adapted to the design of Uniswap v3. So it is not easy for Platypus to solve it by attracting more TVL.

11

Hey folks, thank you for all the comments! This proposal has passed the temperature check, so I will create a consensus check post. Feel free to head to the new post and engage with this topic again!