1. Phezzan Protocol

1.1 Democratize Perpetual Trading for All

The Phezzan team 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. The Phezzan team will design and build Phezzan Protocol as a DEX for Joe Sixpack, not just for established firms and whales.

For this, Phezzan will launch on zkSync 2.0, where the best trading speed and lowest gas fee is available without sacrificing security.

The Phezzan team will try its best to build a product that is friendly to retail investors.

1.2 Features

1.2.1 Multi-Collateral Support

Phezzan Protocol will support multi-collateral. Users can deposit stablecoins, yield-bearing assets, and other coins as collateral.

1.2.2 Earn APY on collaterals

Phezzan Protocol will support yield bearing assets, such as stETH and aDAI (listed as examples, specific assets will be determined before mainnet launch), as collateral. Traders and LPs can earn interests while using Phezzan.

1.2.3 Limit and Stop Orders

Phezzan Protocol will support limit and stop orders before its mainnet launch.

The Phezzan team hasn't determined the implementation details, and will update here once we determined our design.

1.2.4 Friendly UI and UX

The Phezzan team has been making social networking products for years. We understand the importance of a good UI/UX for retail investors. Phezzan Protocol will strive to be the most user friendly perpetual DEX.

1.3 Phezzan Protocol Design

1.3.1 Phezzan uses a hybrid off-chain orderbook + on-chain AMM model

Phezzan Protocol testnet chooses the hybrid orderbook/AMM model. For the liquidity side:

1) Orderbook is mainly for professional market makers for not so volatile assets, such as ETH.

2) AMM is be mainly for retail LPs. Market markers tend to stay away from highly volatile assets such as $APE and $GMT. Phezzan Protocol's AMM will serve these volatile assets well. Retail LPs don't need to actively manage positions to earn fees.

For the trading side, all traders can use either AMM or orderbook. Phezzan Protocol will support limit and stop orders before mainnet launch.

1.3.2 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.

1.3.3 Collateral, Trading Pairs, and Leverage

Phezzan Protocol will support multi-collateral. Users can deposit stablecoins, yield-bearing assets, and other crypto coins as collateral.

Trading pairs supported on Phezzan Protocol testnet will include ETH and 2-3 coins that retail investors love, such as $APE or $GMT.

Phezzan Protocol testnet supports up to 10x leverage.

1.3.4 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 (LPs), 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.