Stellar Community Fund

By Phoenix

Phoenix Hub v2

SCF #20

$100.0K

Legacy v5.0 Community Award

Awarded

Phoenix's AMM enables decentralized swaps of crypto assets and is the first of a full suite of synergistic DeFi protocols.

Products & Services

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 certainty 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.

Our AMM's architecture is modular and robust, featuring a series of interconnected smart contracts - Pool, StablePool, Staking, Multihop (routing), and Factory - each serving specialized functions. From facilitating basic swaps in the Pool contract to complex routing of trades, we've created an efficient and flexible structure. This modular design allows for quick adaptations to market trends and easy incorporation of future upgrades. Particularly, the Staking contract will uniquely support a reward-boosting mechanism, where loyalty in providing liquidity is incentivized with up to a 30% reward increase over 60 days. The Factory Contract not only allows us to deploy new pools but also provides the flexibility to deregister them, ensuring an agile response to market dynamics. This architecture not only solves the common DeFi issues but is also highly scalable and interoperable, thanks to its integration with Soroban.