Chainfir Capital Completes Investment in Phoenix Finance
Published：Aug 26, 2021
We are excited to announce that Chainfir Capital has made a strategic investment in Phoenix Finance in April 2021.
In addition to Chainfir Capital, Phoenix Finance also embraced investments from other world-famous investment institutions encompassing Wanchain, Jubi, Superatom, TRG Capital, Consensus Lab, and others.
Chainfir Capital believes that the transition from centralization to decentralization of options is an inevitable trend of historical development. At present, the focus of competition in the options market is essentially the grab for liquidity. As the first decentralized platform using the MASP model, Phoenix has solved the liquidity problem in the options market and greatly lowered the threshold for options participation, making the trading experience more friendly.
We believe that based on the professional financial capabilities and development capabilities of the Phoenix team, we have every reason to expect an easy-to-understand and easy-to-use options product, an incredibly promising options trading protocol.
About Phoenix Finance
Phoenix Finance refers to a protocol suite that leverages blockchain technology to build an "open financial connector" for the interaction between assets, users, and different service providers in order to meet the needs of investment diversity, convenience and value basis.
Founded by Yang Tao, the original WanChain co-founder, in early 2019, it focused on the derivatives track and landed on decentralized options. Phoenix's long-term vision is to become a DeFi top-layer protocol, creating richer DeFi assets from the asset level and providing users with more inclusive and decentralized financial products.
What sets Phoenix Finance apart?
● Unlimited liquidity
Phoenix Finance creatively designed the pooled liquidity model(MASP model) in DeFi options, applying the automated market maker (AMM) mechanism to options, and concentrating different underlying assets and different types of option margins into a unified liquidity pool. The greatest strength of this design is that it solves the problem of liquidity.
● Lower the threshold for options participation
Users are able to trade options merely with the most basic knowledge of options, participate in options and share the seller's income simply by joining the pool. At the same time, as more users participate in the pool's transactions, the risks of the pool itself are also hedged.
● Better expansion
FPO v1.0 supports the creation and trading of any type of underlying assets. The USDC stablecoin is used as margin settlement, and now supports options for BTC, ETH, MKR, LINK, SNX, and other encrypted assets. In the future, real-world options such as oil, gold, and stocks can also be opened. Compared with BTC or ETH for margin settlement, USDC settlement has better expansion for options.
● Options pricing by contract
Phoenix strictly implements the Black-Scholes model. When users purchase options on FPO v1.0, the options price is automatically calculated by the Black-Scholes formula embedded in the smart contract. An adjustment coefficient has been added to the pricing formula to dynamically adjust the risk balance of the fund pool.
● Stronger risk control
The minimum collateral ratio (MCR) requirement is introduced into the fund pool to control the options risk of the fund pool to prevent insufficient collateral; a pricing adjustment coefficient is introduced to automatically prevent users from purchasing options that are already overweight in the pool, thereby mitigating the risk of fund pool concentration; the "one-hour freezing period" is implemented to prevent lightning loan attacks, etc.