Phantom Docs
User Operations
The operations that users can perform in the Phantom protocol are divided into two categories: one is synthetic asset-related; the other is mining-related.
There are two types of interactions between users and the Phantom protocol.
  • Synthetic asset-related operations
  • Liquidity Mining operations
Synthetic asset-related operations
  1. 1.
    Open a CDP: the user adds specified collaterals and creates a corresponding synthetic asset, resulting in the creation of a CDP (Collateral Debt Position).
  2. 2.
    Close a CDP: When a CDP is closed, the user returns all synthetic assets created in that CDP and receives the collaterals. Phantom Protocol will charge a 1% withdrawal fee.
For example, Alice pledges 50,000 cUSDT with a 200 percent collateral ratio, and the BTC price (according to the oracle) is 25,000 USDT. Then Alice can create 1 pBTC by opening a CDP. Alice will receive 49,500cUSDT if she chooses to close this CDP and return 1 pBTC on Phantom, as there is a 1% handling fee.
  1. 1.
    Deposit collaterals: The user adds collateral to a CDP, thus increasing the collateral ratio and preventing it from liquidation.
  2. 2.
    Withdraw collaterals: The user takes back a portion of the collateral from a CDP under the condition of the collateral rate of the CDP is greater than the minimum collateral rate after withdrawal.
For example, Alice has opened a CDP with 30,000cUSDT as collateral with a 300% collateral ratio. Alice can take out 5,000 cUSDT from the CDP, and the collateral rate will drop to 250%, 250% is still greater than the minimum collateral rate, so the operation can be processed. After deducting the 1% handling fee, her wallet receives 4950 cUSDT.
  1. 1.
    Repay pAssets from a CDP: The user can choose to return some of the synthetic assets to increase the CDP's collateralization ratio, lowering the risk of liquidation. It should be noted that this operation will only raise the collateral ratio and will not give any collateral back to the user.
  2. 2.
    Draw pAssets from a CDP: Users can take more pAssets from a CDP without increasing the collateral, but they must ensure that the CDP's collateral ratio remains greater than the minimum collateral ratio after the operation.
  3. 3.
    liquidate: The Liquidation Outlet allows users to liquidate CDPs whose current collateral ratio is less than the minimum collateral ratio. The liquidator can return the synthetic assets created by the CDP at a certain liquidation discount to obtain the original Builder's collaterals. Because of the liquidation discount, the liquidator can profitably obtain collateral of a higher value than the returned synthetic assets.
Liquidity Mining operations
  1. 1.
    Stake: Users adding liquidity to DEX by staking token pairs, can get LP tokens as proof of liquidity position.
  2. 2.
    Farm: Users can pledge Phantom Protocol-specified LP Tokens on Phantom Pools for liquidity mining and generate PHM rewards.
  3. 3.
    Claim Rewards: Users can withdraw their mining reward PHM at any time.
  4. 4.
    UnFarm: Users can withdraw the staked LP token from the phantom pool, but they will no longer receive liquidity mining rewards.
  5. 5.
    Unstake: Users can withdraw previously pledged LP Tokens from DEX and get back their pAssets and pairing tokens at any time.
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