Phoenix Finance (PHX) is set to relaunch its protocols on Polygon, Binance Smart Chain, and Wanchain. DeFi protocol Phoenix Finance (PHX), previously known as FinNexus has revealed that it is set to relaunch its protocols on Polygon, Binance Smart Chain, and Wanchain. This means it will expand its offerings to three of the most used and scalable blockchain platforms out there.
The protocols on the Polygon chain will be deployed first on the Ethereum layer-2 platform, rather than Ethereum because of its high gas fees.
This is expected to take place on August 9. After the successful launch of the Polygon protocols, the options product under the Wanchain chain will follow on August 16, while both options and leveraged tokens for the BSC chain will be rolled out on August 23.
The Phoenix team is also considering the Ethereum L2 project and Arbitrum as a potential future platform to deploy on.
Improved protocols for users
Phoenix is pioneering a cross-chain DeFi protocol for writing options exposure for multiple assets from within collateral pools. This Multi-Asset Single Pool mechanism for decentralized peer-to-pool options platforms enables anyone anywhere to leverage or hedge their positions in a variety of crypto assets.
With the rebranding to Phoenix Finance, users will experience a seamless and excellent experience interacting with the protocols. Phoenix has worked on ensuring that its options trading contracts provide users with options to leverage their risks. Phoenix uses an intuitive design to ensure that users have the best trading experience and trading options is simple and easy.
Users can easily create options with supported tokens as underliers. The options are traded within a special pooled liquidity environment designed to ensure efficient use of funds.
Phoenix is set to utilize liquidity pools from popular DEXs, including Sushiswap, Unisqap, QuickSwap and Wanswap. This ensures that there is always liquidity for traders to stake their tokens in options contracts.
Leveraged tokens are a core product that Phoenix Finance wants to introduce into DeFi. This token type is popular within centralized exchanges and allows users to maintain leveraged exposure to crypto-assets without managing a leveraged position. This means that traders can trade a product without the risk of liquidation.
For example, the ETHBULL/USD, also known as 3X Long Ethereum Token, offers a return that corresponds to 3 times the daily return of ETH. Thus, for every 1% ETH that goes up in a day, ETHBULL rises by 3%, with the rebalancing mechanism helping maintain the target leverages.
In addition, Phoenix Finance codes are open-source and all the mechanisms and transactions are public and on-chain. This ensures better transparency compared with leveraged tokens traded on centralized exchanges.
New mining and staking options
Phoenix Finance has also revamped its mining and staking mechanisms to ensure that users get the best investment yields, including the ability to boost earnings using PHX tokens.
Regarding the latter, the PHX token is the network token for the entire suite of FinNexus protocol clusters. It serves a variety of purposes, including liquidity mining, governance, voting, and more.
Users can boost their mining rewards by staking PHX tokens in the mining contract. A minimum of 500 PHX is required for the boosting to become effective.
Staking rewards increase based on the amount staked and boosting factor. Phoenix does not place a maximum limit to the boosting factor. However, the speed at which rewards increase reduces as the staking amount grows to ensure a sustainable system.
Phoenix Finance plans to expand its ecosystem with more blockchain platforms expected to be added in the coming months. They also plan to launch new financial products and options that will allow users to maximize their capital.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.