PHOENIX

This project demonstrates a DeFi application using a Collateral Debt Position (CDP) Factory and real-world price feeds provided by Chainsight to create a stablecoin pegged to the S&P 500, named PHX_SP500. It includes smart contracts for deploying and managing liquidity, trading on automated market makers (AMMs), and facilitating arbitrage opportunities.

Contracts Deployed on Opencampus Network

Below is the list of all the smart contracts deployed on the Opencampus network with their respective addresses:

• PHXToken: 0x52ffB51b8F709B80e3B6613bE3F72B728d545D30
• MyMintableToken: 0x2FE4fc4ab52BA6730c796F7feEeBA4f4dB4d5eca
• IndexCDPFactory: 0xA5df2A82B04767d31920e0F2285B55998f27eC8A
• LiquidityProvider: 0xB5B46FC92E1738a7c9DdCb84A2dD4932df66856F

Project Overview

The Phoenix Project aims to bridge the gap between real-world assets (RWA) and decentralized finance (DeFi) by allowing users to issue stablecoins pegged to traditional financial indices such as the S&P 500. The project utilizes a CDP Factory to create CDPs that mint stablecoins backed by real-world asset data provided by Chainsight.

Concept

The project leverages a Collateral Debt Position (CDP) Factory combined with real-world price feeds provided by Chainsight to enable the tokenization of Real-World Assets (RWA). Users can issue tokens pegged to traditional financial indices, such as the S&P 500, by deploying and interacting with smart contracts on the blockchain.

Problem Statement

Currently, tokenizing Real-World Assets (RWA) in DeFi is limited and challenging due to several issues:

1. Real-Time Price Feeds: Difficulty in obtaining real-time prices for indices like the S&P 500.
2. CDP Limitations: No current CDPs issue tokens pegged to indices like the S&P 500.
3. Liquidity Challenges: To stabilize token prices, the issued tokens must maintain adequate liquidity on AMMs.

To fully integrate RWAs like gold, REITs, or government bonds into DeFi, each asset must meet these requirements, which poses significant challenges and delays for widespread adoption in DeFi.

Prerequisite

1. Price Feeds: Chainsight provides the index data (e.g., S&P 500) hourly to the Price Feed (E) on the EVM network.

Roles and Responsibilities

System Administrator

1. Deployment:
   • Deploys IndexCDPFactory (A) and IndexLiquidityProvider (F).
2. Pool Creation:
   • Creates multiple pools for each Index CDP (e.g., B, C, D) from the deployed IndexCDPFactory (A).

DeFi User (Liquidity Provider)

1. Deposit:

   • Deposits $USDC to IndexLiquidityProvider (F).
   • IndexLiquidityProvider (F) allocates some amount of $USDC to an IndexCDP (C).
   • Receives PHX_SP500 tokens issued by IndexCDP (C).
   • Adds liquidity of the pair (USDC/PHX_SP500) to Uniswap V2 (G).

2. Position Closure:

   • Closes the position to receive $USDC and earned fees.
   • IndexLiquidityProvider (F) removes liquidity of the pair from Uniswap V2 (G).
   • Returns some PHX_SP500 tokens to IndexCDP (C).
   • Receives $USDC from IndexCDP (C).

DeFi User (Trader)

• Trades PHX_SP500 tokens on the AMM, such as Uniswap V2.

Arbitrage Trader / Botter

1. Arbitrage:
   • Arbitrages based on price differences between the AMM and the current market price.
   • Redeems PHX_SP500 acquired in the market through the CDP (similar to Liquity protocol).

Target Index

The following indices are available for tokenization through this project:

• Chainsight 20 (Crypto Market Index)
• S&P 500 Index Token (US Stock Market Index)
• S&P Global REIT

Conclusion

The PHX Stablecoin Project presents a novel solution to bring RWAs into DeFi by leveraging blockchain technology and real-world data feeds. This enables broader financial inclusion and more robust asset-backed token markets on decentralized platforms.

Getting Started

To get started with this project, run the following commands:

npx hardhat compile
npx hardhat run scripts/deploy_PHXToken.js --network opencampus
npx hardhat run scripts/deploy_MyMintableToken.js --network opencampus
npx hardhat run scripts/deploy_IndexCDPFactory.js --network opencampus  
npx hardhat run scripts/deploy_LiquidityProvider.js --network opencampus