Phenix Finance is a coalescence of DeFi applications and an elastic supply token. The protocol provides daily and yearly returns of 1.8%+ and 66,666%+ respectively, where this yield is the project’s base function and first selling point.
They also have a lossless lottery system and an NFT collection of 6,666 pieces. These NFTs can be staked for rewards or raise an investor’s chances of winning the prize of the lossless lottery, specifically a 1% chance raise for each Phenix NFT.
This article will break down the properties, built products, and upcoming products of Phenix Finance.
Properties of Phenix Finance Token & Project
RX3 Auto Staking Protocol
RX3 stands for rapid relative rebase; in layman’s terms, the number of tokens in the wallets of holders changes in each epoch of rebasing, and in the case of Phenix Finance, it is a positive rebase token, meaning the number of tokens is always rising. It rewards the holders of Phenix Token 1.8% + daily in return.
Auto Liquidity and Phenix Fund Reserve with Buy & Sell Tax
Every time a sale happens, an automatic taxing protocol initiates where the seller is taxed 15% for the transaction they perform, and the buyer is taxed by 13%.
Then these percentages are broken down for two contracts: Phenix Liquidity Reserve and Phenix Fund Reserve (PFR), which will be explained further in upcoming sections of this article.
The fees and their allocations are broken down as follows:
Buying Fees with a total of 13%
- Phenix Liquidity Reserve: 5%
- Phenix Fund Reserve (PFR): 8%
Selling Fees with a total of 15%
- Phenix Liquidity Reserve: 6%
- Phenix Fund Reserve (PRF): 9%
To clarify further how these fees differ and how they are applied can be understood with the upcoming examples:
- When 1000 Phenix Token is being purchased, 870 $PHNX will be received by the purchaser, 50 $PHNX would go to Phenix Liquidity Reserve, and 70 $PHNX would go to Phenix Fund reserve.
- When 1000 $CRO worth of Phenix Token is being sold, 850 $CRO is going to be received by the seller, and 60 $CRO would go to Phenix Liquidity Reserve, and 80 $CRO would go to Phenix Fund reserve.
As it can be seen, buying Phenix Tokens is slightly more incentivized where it differs in taxing rates from selling $PHNX.
Let’s look at how these taxes are planned to be used by the Phenix Team.
Phenix Liquidity Reserve
The team has two main things in their mind to utilize these funds:
- Stabilizing the Price Floor
- Reducing the Price Volatility
The funds can be used for stabilizing the price floor by setting buyback orders for a target floor price to hold the selling pressure of the market. Even if there is substantial sell pressure, the selling pressure is also being taxed, which funds the Phenix Liquidity Reserve, resulting in a positive feedback loop to stabilize the price floor.
Reducing the Price Volatility is virtually the same as stabilizing the price floor. Rather than setting out for a singular price point as a floor, a range of prices will be determined, and periodic buybacks will happen throughout time. Hence a dollar-cost averaging strategy holds the price in an aimed range that prevents volatility.
Phenix Fund Reserve (PRF)
The team has two main things in their minds to utilize these funds:
- Supporting RX3 Protocol
- Aiding Project Growth
RX3 Protocol is a rewarding mechanism and a base and first product of Phenix Finance. It delivers constant rewards to the holders of $PHNX Tokens. It is an inflationary mechanism, and for the price to remain at healthy levels, a fund gathering mechanism is needed where Phenix Fund Reserve is aimed towards subsidizing demand at some level.
Phenix Fund Reserve also acts as a treasury of the project to aid the project’s growth. It can fund marketing expenses, financing development, and building new products.
Phenix Vesting Vault (PVV)
The team of Phenix Finance took some measures to build their accountability for the community by creating Phenix Vesting Vault. The funds are coming from Phenix Fund Reserve Tax and LP Tokens from providing liquidity.
PVV is launched with the main $PHNX Token Contract. It is locked for two years, specifically until April 2024. The team locked tokens out of their control in terms of withdrawing them to another wallet, but they built a couple of functions that can be executed:
- Sending $PHNX tokens to burn wallet
- Increasing the lock time
This means the team can either decrease the total supply of the $PHNX tokens or increase the lock time to further the date of the unlocking period.
A locked treasure wallet that can only burn tokens until April 2024 signals several things. One is the team’s confidence that they can build the project further without touching any additional funds for a two years period. The other one is that the team does not require community members to trust that they are not going to touch the funds; they just programmatically made themselves unable to touch the funds, making the trust within the community members and the project’s team ironically trustless.
This very much aligns with the nature of decentralized applications and what cryptocurrency’s ethos is about. Programmable trustless finance!
Upcoming Products of Phenix Finance
Phenix Vault: Improving the DeFi Experience
Phenix Finance is building a set of tools under the title of Phenix Vault. This set of tools is aimed toward making DeFi more trustable, intuitive, and secure for projects, individuals, and newcomers.
The first component of this set is launched as DeFi KYC Services of Phenix Finance. It is aimed to empower trust between the community and projects without disclosing identity or sacrificing personal safety, all KYC information is stored in encrypted cloud storage, which will remain enclosed if there is no legal violation occurring by a project’s team, and the service is meant to be multi-chain(not only Cronos) and cost competitive so projects with low funds can utilize it without using too much of their treasury.
Other upcoming features can be expected as it has been disclosed in Phenix Finance’s Whitepaper:
- Customizable token vesting
- Multi-signature contract
- Blockchain activity monitoring
- 1-Click customizable token creation
- Secure and customizable token launchpad
- Rug alerts
All of the features above are meant to bring down the barrier to entry of founding new projects or becoming a sophisticated blockchain user. A complete version of these upcoming features can be found in the roadmap section of Phenix Finance’s Whitepaper.
Phenix Payroll: Infrastructure for companies to breach into DeFi for their Employees
The development of Phenix Payroll is coming from a place where the team believes that the crypto and its applications will come together with many varying industries and their departments, including the business payroll of companies.
Let’s dissect what Phenix Finance is thinking about this topic and their reasons for building such a product by quoting and explaining their stance as stated in their whitepaper.
- “The Phenix Payroll System will be a revolutionary, multi-chain, and secure decentralized application that allows business and project owners to utilize the world of DeFi to manage their payroll.“
Rather than manual labor of sending money to employees as most crypto projects do because of lacking infrastructure, Phenix Finance’s vision is bringing conventional automatic payments rolls as traditional companies employ to the hands of decentralized finance. This may create a spectrum of new applications because of the innate programmability capabilities that cryptocurrencies may introduce to company finance sheets.
- “The Phenix Payroll system will work by providing project and business owners with an interface to track their current balance and manage a series of automated crypto payments to all their employees with a fully integrated scheduling system.“
Phenix Finance firmly states that the payroll they are building will have all conventional aspects of traditional payroll systems. Scheduling payments is specifically started as it is the first component of a traditional payroll system. This property brings stability and predictability of income for people who work in crypto.
- “the interface will provide an array of statistics so that informed business and project decisions can be determined resource allocations and requirements.“
This is where the programmability of crypto gets in with the assistance of Phenix Finance regarding this particular product. A statistical analysis of payroll has a lot of potentialities and can be a very complex product when its development is extrapolated. Although there are not a lot of details shared here, the mention that statistical analysis can be leveraged to optimize resource allocation is already a very promising outlook for this upcoming product.