Phoenix’s AMM DEX intends to be the first of several products launched by Phoenix. The DEX will serve as a cornerstone of the Phoenix and Soroban ecosystems. Phoenix should not be thought of as “just a DEX” or a singular DeFi product, rather it should be regarded as a suite of synergistic DeFi applications designed to synergize with all other Phoenix products to drive outsized value accrual.

Initially, our DEX will launch with features found standard on many DEXs, such as swaps, adding liquidity, creation of xy=k pools, and allowing liquidity providers to earn rewards. We describe this initial deployment as Phoenix DEX "Phase 1". Having studied several DEXs, we have identified the unique needs of both liquidity providers and traders. The needs of both traders and liquidity providers are our North Star in how we approach product design. Traders desire low fees, low slippage, fast order execution, and a variety of trending and "blue chip" assets, while liquidity providers want sustainable yields, reduction in impermanent loss, low “hold up” of liquidity, and certain quality of life features such as auto-compounding. Our DEX and our future suite of products will leverage Soroban’s 5-second finality and 150 TPS to provide DeFi users with a seamless and high-speed experience.

As additional Phoenix products are launched in the future, the utility and features of the DEX will become richer for Phoenix users. When Phoenix Liquid Staking Derivative (LSD) assets are launched, these assets can replace the underlying base assets in a liquidity pool, which allows liquidity providers to earn more sustained yields which will help offset impermanent loss. By making Liquidity Providing more attractive, we expect higher inflows of liquidity to Phoenix, which also reduces the slippage for traders. When lending and borrowing are released, underlying LP positions (LSD based) can serve as collateral for borrowing, further increasing capital efficiency within the Phoenix ecosystem. This will also add greater utility to LP positions, which should also be accretive LP TVL. Additionally, by allowing users more access to capital we also expect an increase in trading activity and in trading fees. By offering lending and borrowing on LSD assets, collateral depositors can earn underlying compounded staking yield on top of borrowed interest.

Over time Phoenix DEX will iteratively upgrade beyond Phase 1 as the products mentioned above are launched. With each product launch, Phoenix DEX and the Phoenix ecosystem will provide more utility to the Soroban ecosystem. We are submitting this application to fund the deployment of Phoenix AMM DEX Phase 1. We intend to submit future applications for LSD and Lending & Borrowing to further upgrade the Phoenix DEX to strengthen the utility of Phoenix and the Soroban ecosystem.

Yes

$150.0K