What is Phoenix Finance?¶
Phoenix Finance is a suite of multi-blockchain decentralized finance protocols with a focus on derivatives. It is a marketplace for various products, including options, leveraged tokens, and more.
What does your platform do?¶
At Phoenix, we offer a number of DeFi products to our users. Besides attractive mining and staking opportunities, we are specialized in financial derivatives, providing discerning investors with the possibility to:
Trade decentralized options on various underlying assets, using an innovative pooled liquidity mechanism that greatly increases capital efficiency.
Acquire decentralized leveraged tokens, which allow users to take leveraged positions by simply holding the token, without worrying about liquidation. Decentralized leveraged tokens are also known as an instrument that can be bought as a spot position but works like a margin product.
Where can I find out more about Phoenix Finance?¶
We strive to keep our users updated about everything that is going on with the project. For more information, please visit our official social media pages and blogs:
Where can I find out more about the PHX token?¶
The PHX token is the network token for the Phoenix Finance suite of protocols. It serves a variety of purposes including payment medium, settlement medium, collateral, liquidity mining, governance, voting and more.
More details on the distribution of PHX tokens can be found on the dashboard and in the tokenomics section.
Mining & staking¶
Can I mine and stake on Phoenix Finance?¶
Absolutely. To mine and stake, please go to the trading page and choose the blockchain you plan to mine on. Connect your wallet, select a pool and provide liquidity to begin earning rewards.
PHX and cPHX tokens function as a booster for mining. Feel free to use the calculator on the staking interface to work out the details, but please note that as a rule of thumb the longer you lock PHX, the more PHX tokens you stake, the higher boosting factor you can get.
Which tokens could be staked to mine?¶
There are currently 4 pools. USDC/USDT pool for Options, WBTC pool for Leveraged Token, ETH pool for Leveraged Token and USDC pool for Leveraged Token. You can stake the relative tokens in the pools to earn rewards.
What is the current APY?¶
Your returns depend on the parameters you select when mining and staking. Please refer to our UI to figure out the exact numbers.
Do you have any guide to mining and staking?¶
Is there any financial risk to stake？¶
Pools for Leveraged Token have the same risk exposure as lending pools in other lending protocols, like AAVE, Compound, etc. The lending pools will earn interest by lending assets to power the leveraged tokens. Pools for DeFi Options will gain premiums from the issuance of options and take the risk as collective option sellers. For more details on risks, please check here and here.
What is the difference between cPHX, vePHX, and PHX?¶
PHX is the tradable token that underpins Phoenix Finance. It can be used in a variety of ways - including as a means of payment and as a governance tool. It is traded both on centralized exchanges and dexes.
cPHX is convertible PHX token, and the token users receive when they mine, functioning as a voucher for mining rewards. cPHX tokens can be minted and claimed anytime, and they are convertible at a 1:1 ratio to the PHX in 6 months.
vePHX is vested PHX, coming into play once PHX tokens are staked in the protocols as mining boosters.
What is the Phoenix Finance Protocol for Options?¶
The Phoenix Finance Protocol for Options is our state-of-the-art set of smart contracts, powering a new, innovative way to trade both put and call options. We do not rely on a traditional order book, but rather on a pooled liquidity system, whereby assets are aggregated, premiums for options writers shared and risks automatically diversified.
You can find a full description of our mechanism here and a guide on how to buy and sell options here. Or just start trading using the dapp.
I am new to trading options. Where can I learn?¶
Many think that options are difficult instruments to master. But they do not need to be! Check out our introduction to options and our guide on options strategies on Phoenix Finance. Get ready to trade now.
How can I trade options with Phoenix Finance?¶
Trading options on Phoenix Finance is intuitive. Open the dapp on the top right of the page and connect your wallet. You can then select one of the various assets offered as underliers, and customize the options type, size, strike price, expiration, and means of payment. Once you have confirmed your transaction, keep track of your positions on the options page and exercise them anytime before expiration.
If you need more details, feel free to check our step-by-step guide.
How is Phoenix Finance different from other options platforms?¶
Phoenix Finance aims to bring professional-grade products to the DeFi space, marrying innovation and quality. Specifically, we offer an innovative MASP model with pooled liquidity, and a series of products designed to satisfy every investor’s needs, across multiple blockchains and layers. From options to leveraged tokens and mining, we got you covered.
What is a decentralized leveraged token?¶
Leveraged tokens are derivatives giving holders leveraged exposure to cryptocurrency markets, without having to worry about actively managing a leveraged position.
They are powered by no-loss lending pools, where participants can earn interest through a permissionless, censorship-resistant, and non-custodial protocol. Leveraged tokens usually offer fixed leverages or leverage ranges through rebalancing mechanisms.
What is advantage of leveraged tokens compared with perpetual contracts? Leveraged tokens have a stable leverage which is rebalanced automatically. There is no risk of being liquidated in unfavorable market movement, provided the rebalancing transitions can be carried out smoothly on chain.
How do you trade leveraged tokens?¶
Acquiring and managing leveraged tokens is as easy as it gets - in fact, simplicity is one of the main advantages of this derivative. All you need to do is going to our trading page, connect your wallet and buy a token, just like you would do with spot trading.
Is a decentralized leveraged token for me?¶
Decentralized leveraged tokens are for everybody interested in having a diversified and profitable portfolio. Especially if the time and energy you can dedicate to manage your leveraged position are limited.
Holding a bull or bear leveraged token entails taking an equivalent leveraged exposure to the bullish and bearish trend. The leveraged positions are automatically managed by smart contracts periodically. It is the easiest and the most comfortable way to take leveraged positions in DeFi.
However, we would like to caution that due to their leveraged nature, the Phoenix Finance decentralized leveraged tokens should be considered trading rather than holding products. Furthermore, please be aware that just like with every other financial product, risks cannot be completely eliminated. Please read our guide and do your own research before investing.
Understand the risks¶
Phoenix Finance pays the utmost attention to making sure that funds are safe at all times. We follow strict multisig procedures to access our protocols, which have all been audited by Peckshield, a leader in the field of DeFi security.
However, please be aware that risks could arise due to a host of both technical and financial reasons. Always conduct your own research before investing and never trade more than you can afford to lose.