Fenix Mechanics Explained

Take a dive into the key concepts on how Fenix operates

Liquidity: Liquidity is what enables swaps to occur on-chain. By depositing liquidity on Fenix, you are increasing the capacity for the DEX to give the traders the best prices on tokens. The more liquidity there is, the better the swap rates. In return, Fenix generates $FNX emissions for liquidity providers.

You can sell $FNX emissions for revenue and/or you can lock $FNX to additionally earn a share in 100% of platform revenue. Competitive Farming: Tighter liquidity means Fenix will be able to give traders the best prices on swaps. To encourage this, liquidity providers can select fully customisable manual ranges and will receive $FNX emissions according to fees generated. This has an extra benefit for veFNX holders, as tighter liquidity also means more fees generated on swaps. More revenue for $veFNX holders means more yield for lockers and encourages more locks that drive up $FNX token value.

Voting with veFNX: $veFNX voters are an essential component to the Fenix economy. You can obtain $veFNX by locking $FNX that is purchased from the open market or from emissions received as a liquidity provider. Locked positions are given to you as an NFT. Voters play a critical role in platform governance as they control platform emissions. Every week, voters can choose the liquidity pools that offer the highest incentives that come from swap fees and bribes deposited by protocols. This is an important mechanism as it ensures that Fenix is consistently providing emissions to the pools that are generating the most revenue. This means that Fenix can inherently self-optimise for maximum growth over time and maintain revenue for voters. Also, by locking $FNX away this reduces inflation from emissions and helps to support $FNX value.

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