A Next Generation Unified Marketplace

Fenix eliminates the need for multiple fee extractive protocols by providing all of the functions that power the Curve (Balancer) & Convex (Aura) ecosystems into a unified protocol.

Fenix is eliminating the significant inefficiency, value extraction and complex UX that is associated with multiprotocol DEX ecosystems. Through a native voting incentives marketplace coupled to the Fenix Nest and quality of life upgrades like the automatic max-lock feature, Fenix can consolidate all of the functions that drive the entire Curve & Convex ecosystems within a single protocol to offer a better user experience for all users.

The Fenix Nest The Nest is a governance power (veFNX) management system that allows protocols and users to delegate their veFNX positions to benefit from automated vote optimisation and reward auto-compounding.

Protocols can deploy custom Nest strategies to automatically vote for their own pools and compound rewards back into their veFNX positions to build governance power. Fenix users can join protocol strategies, or can benefit from the “veFNX BULL” strategy that optimally splits votes across pools and compounds all fees and voting incentives into FNX and relocks it into their underlying position. The Nest charges 0% fees. For users, this means a passive experience that selects the most optimal voting strategy to collect fees and voting incentives that compounds rewards back into your veFNX position. For protocols, this means automatically voting for your own pools, collecting underlying revenue and growing increasing governance power over emissions. The Fenix Nest automates the process of building liquidity at low cost.

This is a significant improvement in user experience and will maximise revenue for veFNX holders over a system that requires multiple value extractive layers. Furthermore, this efficiency in design encourages more positive-sum outcomes through users and protocols who can compound their voting power and rewards.

Fenix provides the entire liquidity infrastructure that powers the Curve & Convex on one platform. For these reasons, we believe Fenix is best positioned to be the home for liquidity on Blast.

Removing the LP Boost. We are taking the best of vote escrow tokenomics and removing the inefficiencies. The LP boost enables token lockers (like veCRV or veBAL) to earn up to 2.5x more rewards according to the relative holdings of a users veTOKEN balance and LP position size. Given that both the Curve and Balancer ecosystems have had time to establish we can observe a number of problems. As a liquidity marketplace for protocols, we want to maximise governance decentralisation by ensuring that all protocols can have an equitable opportunity to benefit from FNX emissions. The LP boost across both Curve and Balancer has ensured that a meta-protocol (Convex and Aura) owns most of the veTOKEN supply. This enforces centralisation, because by design the penalty on emissions that comes from the LP Boost reserves 60% of emissions to entities that can fulfil the criteria of the boost formula. In practice, these systems converge on centralisation. We see this on Curve where Convex owns >50% of the veCRV supply and Aura that owns >60% of the veBAL supply.

This outcome has also rendered the boost formula redundant. As seen on Curve, Convex has captured most of the supply which means LPs are all earning equally boosted yield as no user or entity can own an outsized veCRV position.

This means that in practice there is no need for the LP Boost and without it, Fenix also provides a fairer and more open governance system, affording any user or protocol a fair shot at accumulating locked supply over time. Fenix removes the inefficient LP boost and delivers all the features that meta-governance protocols enable without the fees and on a single platform.