AMA Recap: CRYPTO MINERS X PHEZZAN PROTOCOL
Phezzan Protocol is an interest earning cross-chain decentralized exchange (DEX). Its testnet will launch in April 2022 on zkSync 2.0 and will utilize Anchor Protocol to generate 19.47% APY for all collateral. Unlike most crypto exchanges, Phezzan Protocol uses decentralized stable coins (e.g., UST) and offers interest (by bridging Anchor) while users are trading or market making. The Phezzan team believes that decentralized derivative exchanges should be based on decentralized stablecoins. By being cross-chain in the long run, Phezzan Protocol will bring its unique offering to all major blockchain users, and grow, as decentralized stablecoins become more popular.
We hosted an AMA session with Phezzen Protocol on 1st April.
Mr. Ramsy was the host from Crypto Miners and Miss Cathy was the guest. She shared delightful knowledge and unique features of Phezzen Protocol.
Segment 1️⃣: Introduction
Hello everyone 👋 and welcome to the Crypto Miners AMA session With Phezzan Protocol
To help us learn more about the featured project of this AMA session, we are lucky to be joined By Miss Cathy
nice to meet you guys
Hello there 👋
Welcome here ❤️
Thanks for bringing Us Phezzan Protocol
How are you doing today mate?
a little busy but feel good
I’m pretty sure that our Community is very much excited to learn more about Phezzan Protocol ✌️
So let’s get started if you’re ready!!
of course, let’s go
First of all Please give us a brief explanation about Phezzan Protocol .What popped up in your mind to create such a platform in this Space?
Phezzan Protocol is an interest earning cross-chain decentralized exchange (DEX)
Its testnet will launch in April 2022 on zkSync 2.0 and will utilize Anchor Protocol to generate 19.47% APY for all collateral.
Derivatives trading constitutes a significant part of financial markets.
Unlike most crypto exchanges, Phezzan Protocol uses decentralized stablecoins (e.g., UST) and offers interest (by bridging Anchor) while users are trading or market making.
The Phezzan team believes that decentralized derivative exchanges should be based on decentralized stablecoins.
By being cross-chain in the long run, Phezzan Protocol will bring its unique offering to all major blockchain users,
and grow, as decentralized stablecoins become more popular.
Thanks kathy for this great start about Phezzan Protocol 👌
Now let’s see our second question from this segment
Q2) So what are your main features and advantages that discern you from other Projects?
1. Promoting the use of aUST
Funding payments and PnL in Phezzan Protocol are settled in aUST.
This will enable current aUST users to have more options,
and further encourage more people to use decentralized stablecoins, thus growing the Terra ecosystem.
2. Earn 19.47% APY on all collaterals
By bridging Anchor Protocol, Phezzan Protocol offers traders and liquidity providers 19.47% APY on all collateral.
3. Limit and Stop Orders
Phezzan Protocol will support limit and stop orders before its mainnet launch.
When a user creates a limit order on Phezzan Protocol, the limit order is posted to Phezzan Protocol’s on-chain limit order contract.
A filler bot will fill the order by submitting a fill request to Phezzan Protocol on-chain.
Because the limit orders are on chain, anyone can implement their own filler bots.
Phezzan Protocol runs its own filler bot as well, in case no one else is currently running any.
By default, stop orders will be posted to Phezzan Protocol’s on-chain stop order contract, and gets filled via filler bots. Anyone can run a filler bot.
Some traders might not want their stop orders to be publicly posted.
They may want to avoid price manipulation risks, including stop-loss hunting.
They will be able to implement their own stop-loss bots in a permissionless manner, without revealing any information about their stop-loss orders (price, size, etc) to anyone.
4. Borrower Side Integration with Anchor
The Phezzan team is working with Anchor Protocol to let users borrow from Anchor.
Users need to deposit liquid staking assets, such as bETH and bLUNA,
and will receive UST in return. As of 2022–3–15, net APR for borrowing from Anchor is 2.5%.
Q3) How has the experience and background of your team been effective in the success of your project so far?
Our cofounders have built kinds of stuff for the past 3 years, including an app that reached top 100 spot in Apple App Store’s Social Networking category.
Despite having lots of passionate customers, the business model was not sustainable
So they shut down the project, returned funds to their customers, found new jobs for all our wonderful engineers & community managers, and dived into Phezzan Protocol.
although we are start-up project, we have confidence to make it a well-known DEX
4.Since you have mentioned UST and aUST, could you please specify them?
TerraUSD (UST) is the decentralized and algorithmic stablecoin of the Terra blockchain.
Its value is pegged 1:1 to the US dollar, making it an ideal medium of exchange on DeFi and TraFi platforms.
What makes stablecoins in the Terra blockchain different is the method they use to keep the price stable.
Instead of relying on a reserve of assets to maintain their peg, as USDC and USDT do, Terra assets represent algorithmically stabilized coins.
This involves using a smart contract-based algorithm to keep the price of UST anchored to $1 by burning (permanently destroying) LUNA tokens in order to mint (create) new UST tokens.
As for aUST, aUST is a token used for savings deposits on Anchor protocol.
After depositing a certain amount of UST into Anchor, users automatically receive aUST tokens,
which can then be used to generate income on the Anchor platform.
Likewise, when you withdraw stablecoins from Anchor, you are actually trading aUST for UST.
4. What’s your mission?
M1： Decentralized Stablecoins for DeFi
The Phezzan team believes DeFi should be built on decentralized stablecoins.
While other DEXs use USDT/USDC for trading, which makes Tether and Circle single points of failure, Phezzan Protocol’s vision is that DeFi needs decentralized stablecoins, like UST that Terra offers.
That’s why Phezzan Protocol will have its funding payments and PnL settled in aUST, allowing traders and LPs to earn 19.47% APY while encouraging the use of UST and growing further adoption.
Even though Phezzan Protocol is initially on zkSync 2.0, eventually it will be deployed to other major blockchains. Phezzan Protocol aims to enable decentralized stablecoins’ DEX usage on most if not all major chains.
M2: DEX for the masses
The Phezzan team also believes DeFi is for the masses, not just for a chosen few.
Many DEXs have $100M of daily trading volumes, but there are ~200 users and most of them are bots.
Phezzan Protocol will be designed and built as a DEX for average people, not just for established firms and whales.
For this, a testnet will be launched on zkSync 2.0, where the best trading speed and lowest gas fee is available without sacrificing security.
5. What’s your road map?
Testnet and V1
The Phezzan team plans to launch testnet on zkSync 2.0 in April 2022, and to launch Mainnet V1 on zkSync 2.0 in June 2022. Participants in Phezzan Protocol testnet and V1 will receive retroactive rewards when Phezzan token launches.
The Phezzan team plans to launch Phezzan Protocol V2 alongside Phezzan token in Q4 2022.
Phezzan Q2 will add features such as user run liquidation, more price oracles, non-stablecoin collaterals, permissionless market creation, and possibly order-book on top of AMM.
6. Could you tell us more about your product design?
1. Phezzan uses an AMM model
Phezzan Protocol testnet chooses the virtual AMM model with four key differentiators:
1) It supports limit orders and stop orders;
2) It leverages Anchor, so users can earn 19.47% APY on all collateral;
3) It utilizes Uniswap V3 for order execution to achieve high capital efficiency;
4) Its collateral token can be different from the quote token (e.g., users can trade ETH-UST pair by providing aUST as collateral, even though the quote token is UST).
2. Architecture Diagram
Solid lines refer to a component that has authority over another component.
For example, User Wallet has full control of User Account on Phezzan Protocol.
Dotted lines refer to a component that has a reference over another component. For example, Clearing House can call an Oracle.
3. Collateral, Trading Pairs, and Leverage
Initial supported collateral assets will be aUST. Phezzan Protocol will automatically swap users’ deposited UST to aUST.
Trading pairs supported on Phezzan Protocol testnet will include BTC, ETH and LUNA. The Phezzan team may add SOL, AVAX, BNB, and XRP.
Phezzan Protocol testnet will support up to 20x leverage.
4. Trading Fee
Phezzan Protocol’s trading fee will be 0.1% of the trading size, with the minimum fee being $0.5 to cover gas fees.
Traders don’t need to worry about gas fees.
70% of charged trading fee will go to liquidity providers, and the rest (30%) will go to Phezzan Protocol.
Phezzan Protocol has tier-based trading fee discounts. Users with higher trading volumes can get more discounts in trading fees.
Phezzan Protocol will also have referral programs. Referees will get a 5% discount on trading fees in their first 6 months of trading. Referrers will get 10% of referees’ trading fee.
7.what’s your tokenomics?
Phezzan Protocol will not launch its token until there is sufficient Product-Market Fit for the following reasons.
1) To let the Phezzan team focus on building a meaningful product in the early stages;
2) To first grow Phezzan Protocol organically;
3) To give the Phezzan team more time to design better tokenomics;
4) To align Phezzan Protocol with like-minded long-term thinking users and investors.
The Phezzan team believes in the power of community and decentralization.
Once Phezzan Protocol reaches Product-Market Fit, the Phezzan team will pass the control of Phezzan Protocol to the Phezzan community gradually.
Ideally, Phezzan Token will launch in Q4 2022 alongside Phezzan Protocol V2.
Its whitepaper will cover the details.
The value of the Phezzan token will be supported by fees generated by Phezzan Protocol.
8. What’s your current stage, any future plans?
Our tesnet is currently deploying and will open in this month.
Also, we have been expanding resources in all aspects, including KOLs, agencies and potential partners.
In the future, more events will be organized, for example, we will have an AMA with anchor protocol in Twitter space on 16th, Apr.
Not only that, more partners and KOL are under negotiation, we will be fully prepared for our DEX mainnet launch! So don’t forget to follow our Twitter and join our TG group!
Thanks Cathy for this well detailed introduction about Phezzan Protocol:)
And that’s the wrap up of our the first part of the AMA session ✅
Now Moving on to our last segment — Live Q&A
Shall We Go mate?
leta go ,
Segment 2️⃣: Live QnA
(In this segment group was opened for 60 seconds and Miners sent hundreds of questions. Guest choose some best to answer)
1) Ellen Anita🥰:
What is the max leverage phezzan protocol dex support?
Is there any Limmit of positions to open at same time?
Phezzan Protocol testnet will support up to 20x leverage. There is no other limitations.
If you are interested in it, just follow us, we will open testnet in this month, and you can have a try after then.
Does Phezzan Protocol support limit and stop orders ? Also will it allow users borrow from anchor?
yeah, we support Limit and Stop Orders, and the Phezzan team is working with Anchor Protocol to let users borrow from Anchor. Users need to deposit liquid staking assets, such as bETH and bLUNA, and will receive UST in return. As of 2022–3–15, net APR for borrowing from Anchor is 2.5%.
3) Taiwo Bisayo:
What are your marketing strategies to grow your community as they are still really few?
Like i said before, many KOLs, partners, capital parties, and agencies are under negotiation, we will do more promotion after the testnet launch in this month.
Also, we believe that good product attracts more users, product and marketing are all very essential to us
4) samuel kenny:
All I can see on your website is *World’s first interest earning perpetual DEX*, when are you going to fully develop your website? We need to get more details about your project. Do you have a medium account?
Our litepaper is there as well
𝘄𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗨𝗦𝗧 𝗮𝗻𝗱 𝗮𝗨𝗦𝗧 ??
UST is a algorithmic stablecoin where as aUST is the token you get after you deposit UST into Anchor. Think it as ETH and bETH
*This segment ends here*
Thankyou so much For your valuable answers and information about Phezzan Protocol,
It Was Pleasure Hosting An Ama With You
thank you so much
Is there anything else you would like to share or you want us to know ?
Don’t forget to follow our Twitter and join TG group, more events and rewards will come in the near future!
Time To Conclude Our AMA Session