Echidna Finance ($ECD)

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$PTP wars is heating up. Tokenomics of @echidna_finance & @vector_fi and why they have incredible potential for passive income and token price appreciation

W elcome to the Platypusdefi wars, friendo. Quick thread on stats and key differences between Echidna and Vector

LINKS

Website - https://www.echidna.finance/

Documents - https://docs.echidna.finance/docs/info/why-echidna

Twitter - https://twitter.com/echidna_finance

Discord - https://discord.com/invite/YaH8yP4X3D

Telegram - https://t.me/echidnafinance

Chart - https://coinmarketcap.com/currencies/echidna/

Medium - https://medium.com/@echidnafinance

WHAT IS IT

Echidna is a yield-boosting protocol for Platypus Finance. If you don’t know what Platypus Finance is I suggest going and reading that research document as most of this won’t make sense otherwise.

Echidna basically aggregates $PTP and stakes it into Platypus permanently in order to build their $vePTP treasury. Users can then maximize their stablecoin APRs on Platypus without locking up their $PTP for the 10 month period required. They can instead leverage Echidna's treasury.

Echidna will benefit Platypus by acting as an investment vehicle. By users benefiting from the Echidna platform they simultaneously provide the following benefits to the Platypus protocol in a synergistic matter.

Increase TVL, stability and legitimacy by growing the liquidity pools of the protocol. Ultimately attracting more capital from LPs and alpha seekers. Benefiting the growth of Platypus and Echidna simultaneously.

$PTP accumulation increases APRs over time. Building the largest treasury of $vePTP via buying and staking $PTP will reduce $PTP supply, increase $PTPs token price and raise APR’s on both Echidna and Platypus. Again attracting more LPs and alpha seekers.

Encourage future market making for Platypus. As LP rewards become more attractive due to the boosted rewards available, the user base will increase which increases demand for $PTP and higher APRs. This will lead to more market making on Platypus and benefit both protocols.

There are a few ways to utilize Echidna.

Stablecoin staking to generate passive income

Maximize your stablecoin APR’s with Platypus Finance WITHOUT holding any $PTP

Unlock utility and earn extra passive for your $PTP tokens

OPTIONS 1 & 2

OPTION 3

STABLECOIN HOLDERS & PLATYPUS LIQUIDITY PROVIDERS

Users holding stablecoins can either deposit their stablecoins into Platypus directly through Echidna’s zap feature. This conveniently combines stablecoin staking on Platypus and subsequent LP token staking on Echidna into a single user-friendly process.

Platypus LP tokens can be deposited into the Echidna platform in order to maximize your yield without actually holding an $PTP. This allows users to take advantage of the $vePTP accumulation from Echidna and benefit from higher APRs due to the boosted rewards.

Through depositing on Echidna they also remove the following complications for the user

Capital allocation

Rewards claiming

Price volatility

$vePTP withdrawal penalties and losing all accumulated $vePTP

$PTP HOLDERS

Users can unlock additional utility for their $PTP tokens by using Echidna. Echidna creates a fungible and tradable token derivative in exchange for users’ $PTP contribution. Users deposit $PTP into the treasury and are rewarded with extra passive income via the native Echidna token $ECD, on top of a % of Echidna’s $PTP revenue. In the future when Platypus introduced gauges users can also monetize $PTP’s voting power on these gauges via $vePTP.

TOKENOMICS

There are 3 native tokens on Echidna and they are $ECD (Native token) and $veECD (vote-escrow Echidna token), and $ecdPTP (Echidna Platypus token). I will explain the use cases of each below.

$ECD (Native token)

Echidna rewards $PTP contributors on the protocol with extra liquidity and income via their native token, $ECD. $ECD is the native platform token and is used for the following

Additional liquidity and income for $PTP contributors

Tokenised and fungible $vePTP

Can be swapped for $AVAX via $ECD/$AVAX pool on TraderJoe

Can be staked into $ECD/$AVAX pool to receive emissions

Can be locked for up to 2 years for $veECD

$veECD (vote-escrow Echidna token)

Once Platypus voting gauges are enabled, veECD holders can vote on Platypus rewards allocations via Echidna’s vePTP treasury. You can vote to allocate rewards in favor of your investments or receive financial incentives from stablecoin protocols to allocate rewards to their pool on Platypus. $veECD will be used for the following.

Hold to gain voting power on Echidna protocol to vote in Platypus voting gauge

Hold to earn 5–10% of Echidna protocol revenue (paid in $PTP)

Voting power decays linearly over time as $ECD lock period moves closer to expiration. Time lock can be renewed before expiration

Users can choose to exercise their vote or monetise voting power in the future

$ecdPTP (Echidna Platypus token)

When you contribute $PTP to Echidna, it becomes a yield generating asset. PTP is exchanged for $ecdPTP at a 1:1 ratio. You can earn $ECD by staking your $ecdPTP in Echidna. $ecdPTP can be used for the following.

Tokenised deposit of $PTP tokens; fixed 1:1 exchange rate with $PTP

Similar to $cvxCRV from Convex

Stake $ecdPTP to earn $ECD emissions

$PTP to $ecdPTP conversion is not directly reversible on Echidna

The full token model is displayed in the photo below. The lower half (in red) is the model for liquidity providers and the distribution of $PTP rewards generated by Platypus LP tokens.

The upper half of the chart (in blue) represents the flow of $PTP tokens and their derivatives in Echidna.