Phezzan Protocol

Phezzan Protocol is an orderbook perpetual DEX with Permissionless LP on zkSync 2.0. Phezzan testnet has been live on zkSync 2.0 testnet since August 2022.

History

UST as Collateral (Jan 2022 - April 2022)

UST (now USTC) was the first supported collateral on Phezzan Protocol. The vision of the Phezzan team is--DeFi should be built on truly decentralized stablecoins, instead of centralized stablecoins, and the market cap of UST was the largest in decentralized stablecoins. After the event of UST depegging, the Phezzan team decided to adapt its collaterals to other yield-bearing assets and stablecoins, such as USDC and ETH/wETH.

Launch Testnet on Rinkeby (April 2022 - July 2022)

Phezzan Protocol uses Uniswap V3, Chainlink, and The Graph, and all those three were not written in Solidity 0.8. Since zkSync 2.0 only supports Solidity 0.8 by the time, Phezzan team launched its testnet on Rinkeby, and then started working on upgrading its Solidity version. During Phezzan's peak hours, Phezzan Protocol drove up gas fees for the entire Rinkeby network.

First Perpetual DEX on zkSync 2.0 & Orderbook (August 2022 - now)

Phezzan Protocol upgraded its smart contract to Solidity 0.8 and launched its testnet on zkSync 2.0 on August 2. Afterwards, Phezzan team started designing and developing limit and stop orders, and switching its core product mechenism from AMM to the orderbook model, before its mainnet launch.

Overview

Orderbook

Phezzan Protocol will use the orderbook model. Compared to the AMM model, the orderbook model is more capital efficient, offers lower trading slippage, and zero impermanent loss for LPs.

Permissionless LP

Phezzan Protocol enables permissionless automatic market making strategies so retail LPs can easily provide liquidity as they do in AMM style DEXs. A regular crypto user can select any number of market making strategies with a click of mouse and start market making.

Collateral, Trading Pairs, and Leverage

Phezzan Protocol supports multi-collateral. Users can deposit stablecoins, yield-bearing assets, and other crypto coins as collateral. Trading pairs supported on Phezzan Protocol will include ETH and 2-3 coins that retail investors love, such as $APE or $GMT. Phezzan Protocol supports up to 10x leverage.

Trading Fee

Phezzan Protocol's trading fee is 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 LPs, and the rest (30%) will go to Phezzan Protocol.

Tokennomics

Phezzan Protocol will not launch its token until there is sufficient Product-Market Fit. The Phezzan team wants to focus on building a meaningful product in the early stages and grow organically.