What is Phantazm?

Phantazm operates as a decentralized, non-custodial liquidity protocol, organized in two deployment phases, offering users the opportunity to engage as either depositors or borrowers. In the first phase, Aave smart contracts serve as the base, with their implementation setting a foundation for the overall system. Subsequently, in the second phase, Phantazm protocols will follow, which will interact with the same protocol base.

Depositors contribute liquidity to the market, in turn earning a passive income. Conversely, borrowers can take out loans in either an over-collateralized (perpetual) or under-collateralized (one-block liquidity) manner.

The ensuing documentation elucidates the core mechanics of the phased deployment and the interaction of the Aave-based and Phantazm protocols, in addition to providing guidance on how to engage effectively with the system.

Phantazm is implemented via a series of smart contracts on the Ethereum blockchain. These contracts, including those based on Aave, ensure a high level of security and eliminate the need for intermediaries, paving the way for a truly decentralized and safe financial ecosystem.