Liquidity Provider Guide

Overview

Phoenix is the fastest P2P marketplace for USD-USDC transactions. Because we never take custody of funds, Phoenix is the first P2P solution that allows users to quickly onramp with Zelle payments with no KYC. By operating outside the flow of funds similar to DEXs like Uniswap, Phoenix maintains a non-money transmitter status while still enforcing AML compliance via Anchain.ai to prevent interaction with sanctioned funds.

• Set your own price (recommended spread is 100 bps)
• Keep full control of your assets
• Withdraw your USDC from your liquidity pool at any time before it's purchased
• Receive USD payments directly to your bank account via Zelle
• Pay zero fees - Phoenix charges no fees to LPs

By providing liquidity, you can capitalize on a spread (~100 bps at launch) on every transaction while maintaining complete control of your assets. Our API will allow you to programmatically manage your liquidity pool, set custom spread parameters, monitor transactions in real-time, and automatically reinvest profits. This automation reduces operational costs and enables your capital to cycle multiple times per day, significantly amplifying your effective returns compared to traditional yield products.

Trust & Backing

Phoenix is a product created by Suave, and is backed by leading investors in the Web3 space.

• Built by Suave - Suave enables DApps to accept any token from any wallet on any blockchain
• Backed by top investors - Including a16z Crypto, OrangeDAO, and HF0
• Built on Base, Coinbase's L2 solution
• Transparent smart contracts that are open source and secured by Suave

How It Works

Phoenix operates with a straightforward yet powerful workflow:

Profitability & Capital Efficiency

Phoenix's business model revolves around allowing businesses to seamlessly onramp their users to USDC, meaning that liquidity providers pay no fees and can earn returns on every transaction with high capital efficiency:

// Sample calculation parameters
const initialCapital = 50000; // USDC
const spread = 0.01; // 100 bps = 1%
const phoenixTxTime = 2; // minutes
const repurchaseTime = 30; // minutes
const totalCycleTime = phoenixTxTime + repurchaseTime;
const dailyVolume = 1000000; // $1M

// Maximum cycles based on time and volume constraints
const maxCyclesPerDay = Math.min(
  Math.floor(1440 / totalCycleTime), // Time constraint (1440 min/day)
  Math.floor(dailyVolume / initialCapital) // Volume constraint
);
// Result: 45 cycles per day

// Calculate profit with compound returns and fees
const phoenixGasFee = 0.05; // $0.05 per transaction
const usdcPurchaseFee = 0.10; // $0.10 fixed fee per purchase
const usdcPurchasePercentFee = 0.00; // 0% percentage fee
const transactionFee = phoenixGasFee + usdcPurchaseFee + (usdcPurchasePercentFee / 100) * initialCapital; // $0.15 total fee per cycle
const grossProfit = ((Math.pow(1 + spread, maxCyclesPerDay) - 1) * initialCapital);
const totalFees = transactionFee * maxCyclesPerDay;
const netProfit = grossProfit - totalFees;

// Calculate daily return percentage
const dailyReturn = (netProfit / initialCapital) * 100;

// Result: ~25% daily return when compounded over 45 cycles

API Documentation

Frequently Asked Questions

Contact Us

Have questions about becoming a liquidity provider on Phoenix? Our team is here to help you get started.

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