Phoenix Finance in-depth analysis: From "asset wrapping" to "native finance", reconstructing the yield logic of RWA

Phoenix is not just an asset wrapping protocol, but a native financial system for RWA (Real World Assets). In the face of $17 billion in RWA assets being fragmented, silent, and disconnected from the rapid flow of DeFi on-chain, Phoenix has launched a solution consisting of a unified settlement layer (PUSD) and an intelligent yield engine, aiming to transform static real-world cash flows into composable DeFi protocols.

1. Why do we need Phoenix?

"We have brought assets on-chain, but we have missed bringing financial logic on-chain."

By 2025, stablecoin trading volume has surpassed $33 trillion, far exceeding traditional payment giants like Visa. However, the RWA (Real World Assets) sector remains stuck in the primitive "asset mapping" model. Although government bonds and credit have been successfully tokenized, the market still faces severe structural mismatches:

• Liquidity fragmentation: Tokenized bonds on Ethereum cannot circulate on Solana.
• Capital idly sitting: Static tokens lie in wallets, unable to participate in the high-frequency loops of DeFi.
• Yield cycle mismatch: Real assets pay yields monthly or quarterly, while DeFi seeks block-level compounding growth.

Phoenix Finance is dedicated to bridging this gap. We not only bring assets on-chain but also build an Intelligent Execution Layer to orchestrate these assets.

2. Product Matrix: Financial Refinery

Phoenix plays the role of a "refinery," transforming raw, non-standardized real yields into DeFi-friendly standardized products:

• PUSD (Settlement Layer): A unified cross-chain stablecoin. Without the need for traditional cross-chain bridges, PUSD enables "instant transfer" between chains with zero friction.

• yPUSD (Base Yield Layer): Provides Beta yields delivered through an automatic compounding rate. The system smooths fragmented RWA repayments into a continuous yield curve, allowing users to hold and appreciate without manually claiming rewards.

• PYN (Structured Yield Layer): Fixed-term NFT notes (7/31/89/181 days). Users lock liquidity to match specific RWA maturity dates (such as structured credit cycles) to earn Alpha premiums. This is equivalent to a crypto-native principal token supported by real-world cash flows.

3. Core Engine: Mechanisms and Logic

1. Teleporter Mechanism: Unified Credit and Native Minting Traditional cross-chain bridges often rely on high-risk "lock-mint" models. The Phoenix Teleporter operates as a unified credit protocol, mapping users' collateral and credit status across chains, allowing for direct native minting of PUSD on the target chain. This means PUSD is a native asset on any chain, achieving zero fragmentation.

2. Dynamic Layered Reserve Stack (The Reserve Stack 80/15/5) Solvency is binary—either solvable or defaulted. To ensure the former, we adopt a dynamic layered mechanism:

• Liquidity Layer (80%): Composed of USDC/USDT and short-term U.S. Treasury bonds, ensuring users can exit at any time with rigid redemption capability.

• Yield Layer (15%): Composed of high-rated private credit and structured RWA, serving as the core engine for system yields.

• Buffer Layer (5%): Protocol income acts as a "first-loss" layer, absorbing risks before volatility reaches users.

3. AI Controller (AI as Controller) The AI of Phoenix is not used for price speculation but acts as a "cycle adapter" and "risk sentinel." When the system detects mismatches between on-chain liquidity demand and off-chain asset maturity dates (such as rigid quarterly-paying RWA), the AI dynamically adjusts the APY of specific-term PYNs (e.g., 89-day notes). This guides users to lock capital through market incentives, precisely balancing the balance sheet.

4. Transparency and Security Defense

From Trust to Verification:

• Proof of Reserve: Real-time on-chain feeds of all underlying asset data.

• Phoenix Hunters (Liquidation Network): An active defense network composed of whitelisted Keepers. When collateral value falls below a threshold, Hunters automatically bid at about 95% of the value, instantly clearing bad debts without waiting for lengthy governance processes.

• Rejecting Black Boxes: Every bit of yield from yPUSD comes from verifiable on-chain sources or audited SPVs.

RWA should not become a museum of assets. Phoenix is transforming it into an efficiently operating on-chain economy.