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Phoenix Finance Set to Mainstream Leverage Tokens in DeFi

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by Julia Sakovich · 4 min read
Phoenix Finance Set to Mainstream Leverage Tokens in DeFi
Photo: Phoenix

With the goals of increasing TVL, adding liquidity, attracting traders, and boosting platform stability, Phoenix Finance is working towards providing the best conditions possible to attract more users to its platform and grow within the DeFi sector.

The success of DeFi in the past 12 months has been remarkable, with the amount of funds in DeFi protocols rising to over $40 billion.

DeFi protocols are now providing a vast array of financial services like borrowing and lending of funds, trading cryptocurrencies, market prediction, earning interest in savings-like accounts, insurance against risks, asset management, and speculation on price movements on a range of assets. 

Yield farming and staking are the two most popular forms of investments, but new trading options have emerged as the sector continues to evolve. Phoenix Finance (PHX), formerly known as FinNexus, intends to mainstream decentralized crypto options and introduce leverage tokens to the DeFi sector. We explore some of the key features of Phoenix Finance. 

Options Trading 

Options provide a unique investment tool for traders looking to leverage their risks. The volatile nature of DeFi tokens has seen traders turn to options trading, and Phoenix options are among the best in the market.

Phoenix options include underlying assets like BTC, ETH, LINK, SNX and MATIC. They are traded within a unique pooled liquidity system that allows efficient use of funds. Phoenix Options contracts are written collectively by the pool and premiums are shared among participants. This ensures that risks are limited and option buyers can set flexible parameters, thus maximizing their opportunities.

Phoenix Finance users will access liquidity pools on popular decentralized exchanges, including Quickswap, Sushiswap, Uniswap, ApeSwap, PancakeSwap, and Wanswap.

Innovative Decentralized Leveraged Tokens

Phoenix Finance is also introducing leveraged tokens to DeFi. Decentralized leverage tokens are derivatives that allow users to obtain leveraged exposure to cryptocurrency markets without going through the trouble of managing a leveraged position and suffering liquidation risk. 

Take, for instance, the ETHBULL/USD, also known as 3X Long Ethereum Token. This token can be used instead of 3 times the daily return of ETH. When the value of the normal ETH increases by a certain percentage, the value of ETHBULL rises by 3 times the percentage.

BTC, ETH, USDC, USDT can be used as collateral for accessing any of the products launched, with APYs derived from lending interest (for leveraged tokens), premiums (in options), PHX basic incentives, and PHX boosting incentives.

Improved Mining and Staking Options

Phoenix Finance has developed a unique mining and staking mechanism that is designed to provide sustainable gains. PHX token will serve as a booster for mining and provide direct multiplying effects in Phoenix Pools.

Users are only required to stake the tokens in the mining contract across the different pools, to boost their rewards. Miners can boost a desired mining pool by staking PHX. 

A minimum of 500 PHX must be staked for the boosting to become effective, and the more tokens staked, the higher the boosting factor. Stakers also receive rewards according to the amount staked, and the higher the stake, the bigger the rewards. 

Cross-Chain Protocol 

Phoenix Finance is a cross-chain protocol that will support multiple blockchain networks. The protocol will first launch on the popular layer 2 platform Polygon on August 9. Following the successful deployment, migration to Wanchain will occur on August 16, while Binance Smart Chain migration will be rolled out on August 23. 

Phoenix intends to leverage the low transaction fees and scalability on these platforms to offer unique products for users. The Phoenix team will also consider the Ethereum Layer-2 project Arbitrum in the future. 

Final Thoughts 

With the goals of increasing TVL, adding liquidity, attracting traders, and boosting platform stability, Phoenix Finance is working towards providing the best conditions possible to attract more users to its platform and grow within the DeFi sector.

To learn more about Phoenix Finance, visit their website and social media channels, including Medium and Twitter.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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