Phoenix (PNX)

Inspiration

Inspired by OlympusDao and Ve(3,3), the team decided to build Phoenix on Near for a number of reasons. Our team's deep knowledge of crypto systems, our competency in Rust and the overall speed in comparison to Ethereum. Additionally, from a user's perspective, we believe that Near offers the best upside for them to experiment with new innovations in Defi 2.0. With low transactions fees and high speed, users can effortlessly use the financial products they are told were built for them. Near allows us to serve all, with the dynamism the people expect from Defi 2.0.

What it does

Phoenix is the decentralized reserve currency built on Near. The Phoenix token is PNX. Each PNX token is backed by a basket of assets currently being USDC, USDT, some LP tokens in the Phoenix Treasury, giving the PNX token an intrinsic value that it cannot fall below.

At a high level, GOV consists of its protocol managed treasury, protocol owned liquidity, bond mechanism (minting), and high staking rewards that are designed to control supply expansion. Bonding in the "Bond" page generates profit for the protocol, and the treasury uses the profit to mint $ and distribute them to stakers. With LP bond, the protocol is able to accumulate liquidity to ensure the system stability.

How we built it

The protocol uses it's treasury to back all outstanding PNX tokens.

That mean each PNX is backed by the stable coin USDT. For example, the DAO determines the support value to be $ 1

When value of PNX above it's backed assets, the protocol mints and sells news PNX increasing supply.

When value of PNX below it's backed asset, the protocol buys-back PNX and lock in Treasury decreasing supply.

This allows the PNX token to achieve a stable floating value while never falling below the value of it's backed assets

Also expands it's treasury through bonds.

Bonds are sold by the protocol for different assets and in return the buyer received PNX at a discounted price.

This allows the protocol to control the supply of PNX and lock in liquidity to the treasury.

These assets are also used to back new PNX that is distributed to stakers.

What is staking ?

Staking is the primary value accrual strategy of Defi 2.0 of the Phoenix. It is designed and proven to be the dominant strategy for market participants; the most optimal method to stake, hold, and auto-compound PNX over time. Buying and staking can also be viewed as a method for passive investing and long-term strategy. You let your rewards and your initial staked amount auto-compound. Even when the market price falls below your purchase price, given a long enough time frame, the compounded rewards will outpace the drop in price.

When you stake, you lock PNX to receive xPNX. Your xPNX balance rebases up automatically at the end of every block. xPNX is composable with other DeFi protocols such as minting synthetic assets, minting NFTs, and using as common currency in MetaFi (Social Metaverse)... this will greatly reduce the supply of external PNX.

The Model like OlympusDAO (OHM) explain this through the expression (3,3), where (3,3) represents the most optimal play of staking between 2 separate parties. If everyone stakes, it creates a win-win situation that benefits everyone.

For example, Biden and Putin both have PNX and are clueless about what to do with it. If both of them decide to sell, their decisions drive the selling pressure. In contrast, if both cooperate to stake their PNX, it will create a beneficial win-win environment for both of them. This long-term focus strategy (3,3) excludes short-term speculators. Do not join us if you’re looking for quick flips and short-term gains, for those PNX, that game will not be seen.

What is Bonding?

Bonding is the process of trading an asset or LP share to the protocol for PNX. The protocol specifies the tentative ROI of bonding, the amount of PNX participants will receive and a vesting period for the trade. In a optimal scenario, participants trade their asset or LP share for more PNX tokens. Bonding is for a 5 day fixed period. Each different type of bond you can hold one of. if you buy more than one bond of the same variety, you will forfeit the previous yield you had locked in and reset the time to maturity to 5 days. A bond portfolio can look like this in simplest terms.

One bond of USDT variety, bought when PNX is worth $1000 USDT. With a 5% discount on the bond, you will be paying 950 USDT for the opportunity to own $1000 USDT of PNX at maturity.

Furthermore, your bond is not paid out the full amount only at maturity, but rather it is linearly vested, meaning that you get the proceeds from the bond handed back to you during the duration of the bond. This means that a user of Phoenix can effectively bond, claim quickly and then stake the proceeds for even more implicit yield.

Accomplishments that we're proud of

We have built a product named UPFI Network, is a stable coin partially backed by collateral, and partially stabilized algorithmically. UPFI won the 1st prize at Solana Season Hackathon - Nation Vietnam. The project also announced that it has successfully completed its funding round with more 2 million USD. Backed by reputable investors like Moonwhale Ventures, Kyros Ventures, CSPDao, Exnetwork, Mercurial Finance, OIG, Master Ventures, and others, as well as community support like TCVN, Crypto banter, and others.

Our mainnet has officially launched successfully and has over 3,700 holders and already released the UPFI protocol, Farming and Stable Swap and DAO 2.0 : Staking & Bonding with staked token is 60%.

Our Twitter has 90k + followers and Telegram has 110k + subscribers.

What's next for Phoenix (PNX)

Upgrade locking time for Staking
Build a DAO structure for decision making from Staker
Opensource the synthetic mechanism to generate synthetic tokens for increased capital efficiency for other projects, for example: USDC -> nUSDC BTC -> nBTC Near -> nNear ..... They can then use these aggregated assets as collateral to borrow/lend or use other applications in other dapps.
Build Swap AMM to use LP in Bonding, then distribute transaction fees to PNX Staker
Build a MetaFi - This world combines Decentralized Finance and the Social Metaverse, where its citizens get rewarded for their engagement and enjoyment.
Build a stable miner (like Ichi model) open source for other project can build stablecoin themself and then use Bond on Phoenix to provide LP.