FinNexus (FNX)

Basics

• Founded in: 2019
• Mainnet release: FPO was launched on Ethereum on 4th November and on Wanchain on 11th November.
• Based in:
• From this blog (25-6-2020):

"FinNexus is building an open finance protocol to power hybrid marketplaces that trade both decentralized and traditional financial products. FinNexus has already launched the first real-world tokenization product called UM1S, together with the process of ICTO, while the decentralized option protocol V1 is due for release in Q3 this year according to the 2020 roadmap." Got released (1-12-2020).

Token

Launch

• From their docs (6-3-2021):

"An open subscription event for the FinNexus platform token FNX was held in May of 2020 using FinNexus's innovative ICTO token offering model. 44 million tokens were made available during the subscription event. The subscription rate at the end of the event was ~95%. The conversion period ended on 26th August 2020."

Token allocation

• Changed its allocations after community feedback. Which drastically changed the allocation towards community mining and burned more than half of its original token supply (25-8-2020);

1. Mining Incentives & DAO 70%
2. Team & Founding investors 5%
3. Insurance Pool 5%
4. Reserved for future token sales 5%
5. Operation Reserved 4.5%
6. Institutional investors 1.7%
7. In circulation 2.7%

Token Details

• The FNX tokens exist in both ERC20 and WRC20 form.

Tech

• Whitepaper can be found here (2019).
• Code can be viewed here.

Implementations

• Built on: Wanchain, from this blog (25-6-2020); "The first version will be launched on Wanchain Blockchain, which provides much faster transactions and lower gas fees. Also, it will comprehensively integrate Wanchain’s cross-chain mechanism to allow for options based on BTC and other crypto assets. The next step is to simultaneously run the options protocols on Wanchain and Ethereum together."
• Also live on Ethereum (1-12-2021); "Later it may come to Elrond, Kardiachain and more."
• Programming language used:

Transaction Details

• Capacity (TPS):
• Latency:

How it works

• From its own blog (1-12-2021):

"FPO v1.0 is a decentralized peer-to-pool options model, built with pooled liquidity. Like Hegic, the beauty of pooled liquidity is that it accumulates liquidity from all market participants simultaneously and automatically. The risks and premiums are also shared equally across the entire group of liquidity providers so that no individual participant is at high risk and all participants can share in the rewards.

FinNexus calls FPO the Universal Options Platform. It is called that because the pools can support any underlying asset on any base layer blockchain. Since FinNexus partnered with Chainlink, if they have a price feed for it, FinNexus can include it in our options liquidity pool.

MASP stands for Multi-Asset-Single-Pool model, and it is the core mechanism and innovation in the FPO platform. Multi-Asset means that FPO is supportive of multiple assets as the underliers of options, as well as the ones contributing to the collateral. Single-pool represents that the options live are powered by joint liquidity, which doesn’t necessarily mean that there is only one liquidity pool. There are currently two pools on Ethereum, a USDC pool, and an FNX pool. There is also one WAN/FNX hybrid pool on Wanchain, dually backing the issued options.

Oracle Method being used

• From its own blog (1-12-2021):

"Since FinNexus partnered with Chainlink, if they have a price feed for it, FinNexus can include it in our options liquidity pool. Key parameters for pricing options include the underlying asset price feeds such as BTC/USD, ETH/USD, LINK/USD, MKR/ETH, and SNX/USD. Most critical to these calculations is a source for IV. In contrast to Hegic which requires manual input based on skew.com data, FPO uses live feeds from Deribit to provide these crucial data points to the FPO v1.0 smart contracts. In another differentiator with Hegic, an adjustment coefficient is added to the pricing formula to make the pool more balanced with regard to risk.

• From their docs (6-3-2021):

"Also, FinNexus is cooperating with Band Protocol for price feeds on Wanchain."

Governance

• From their docs (6-3-2021):

"While the long term goal is 100% community controlled governance, during this interim period, the FinNexus team will take a more hands on role in making certain that governance gets off on the right foot.

Governance will take place primarily through the official discussion forum and through Snapshot. Proposals must be made on both the Ethereum Snapshot and Wanchain Snapshot pages. Proposals must be identical for each Snapshot, and the voting time should be set to occur on a block which occurs at roughly the same time on both chains. The governance process begins on the FinNexus Governance Forum where proposals are first submitted for discussion. If the community signals its interest and any necessary modifications to the proposal are made, the proposal is submitted to Snapshot for voting. During the interim governance period, only Core proposals are binding. Core proposals are those made by addresses whitelisted by the FinNexus team.

If a Snapshot proposal passes and no code is required to be implemented, the approved action will be taken directly by the team. If code deployment is required, the code will go to audit if necessary, and there will be a period for public review of at least one week before the code is deployed.

• From their blog (25-8-2020):

"Our transition to a fully decentralized structure was highlighted in our initial whitepaper and remains on track for 2024."

Roadmap

• Can be found here (17-1-2020).

Audits

• Bug bounty program can be found [insert here].
• Its docs (6-3-2021) say "The audit process of FPO v1.0 is still in progress."

• From this comparison blog (1-12-2021), the options have a timelock:

"One-hour Chill Time. To protect against possible flash loan exploits in FPO v1.0, a special mechanism called ‘Chill Time’ is designed, during which the options buyers cannot sell or exercise the options, and the pool participants cannot withdraw their assets out of the pool. ‘Chill Time’ is set to be one hour."

Usage

• Has a TVL of 7,855,425 USD, only 701,727 USD of which are on Wanchain (6-3-2021).

Competition

• Hegic, Primitive, Opyn, Opium Protocol and other option platforms.

• From its own blog (1-12-2021):

"Since FinNexus partnered with Chainlink, if they have a price feed for it, FinNexus can include it in our options liquidity pool. Key parameters for pricing options include the underlying asset price feeds such as BTC/USD, ETH/USD, LINK/USD, MKR/ETH, and SNX/USD. Most critical to these calculations is a source for IV. In contrast to Hegic which requires manual input based on skew.com data, FPO uses live feeds from Deribit to provide these crucial data points to the FPO v1.0 smart contracts. In another differentiator with Hegic, an adjustment coefficient is added to the pricing formula to make the pool more balanced with regard to risk.

Pros and Cons

Pros

• From its own blog (1-12-2021):

"The pricing mechanism coded is more dynamic and can auto-balance the risk in the pool."

Cons

• For security reasons, options have a 1 hour timelock, this however also makes the project less flexible for users (1-12-2021).

Team, Funding, Partnerships, etc.

Team

• Full team can be found here (6-3-2021).
• Boris Yang; Founder & CEO
• Lu Jianqiang; CTO
• Veerender Singh; community manager
• Jack Lu; advisor (Wanchain Founder)

Funding

• Raised $1.5M in a round led by IOSG Ventures (16-3-2021).

Partners

• From their website (6-3-2021):

Consensus Lab, Chainlink, Band Protocol, Kardiachain, Elrond, Wanchain, TRG Capital, Kyros Ventures & Genesis Group.

• Mentioned (12-7-2021) as a partner on the website of DFI.Money (YFII)

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