APEX Network and Red Pulse Phoenix to Merge and Develop Horizon DeFi Platform

6 min readOct 13, 2020

Dear APEX Network community and partners,

After months of meticulous planning and discussion, APEX Network and Red Pulse Phoenix have made a calculated decision to take our projects, platforms, and ecosystems to the next stage through a merger that will create a comprehensive enterprise data blockchain platform. The merger will create a larger, more powerful infrastructure and ecosystem, effectively leveraging the best resources both projects have to offer (technology, platforms, token economies, token liquidity, human talent, community, and marketing).

The combined entity will become Phoenix Global, and CPX token holders will be granted PHB (BEP-2) tokens at a ratio calculated based on moving average price, with details on the swap forthcoming.

This will accomplish what very few projects have done successfully — achieve synergies via a combined greater user base, market cap, and real-world applications, catalyzing growth and expanding the ecosystem.

Immediate strategic benefits

● A more comprehensive enterprise data blockchain platform consisting of 1st party (consumer-related) data applications + 3rd party data (market data, external data, enterprise ESG data) with a larger enterprise ecosystem (B2C companies + financial institutions)

● Combined technical resources and teams will give the new entity a talent edge in the competitive blockchain landscape

● Greater exposure, stronger combined marketing resources for pre and post-merger, a much larger community will be created. Community management and outreach resources will be maintained and combined. [Approx combined community: Telegram (English): 15,000+, Social Media: 60,000+, Email lists: 90,000+] We will also onboard new strategic marketing partners to the merged platform (more details below).

● Leveraging the best of both projects includes PHB exchanges and liquidity — available via existing Phoenix token listings on Binance, Huobi, Switcheo, and others.

● Will catalyze the time-to-value of various existing applications on both platforms (data exchange protocols, federated learning, reward points etc) adding more diverse use cases and scenarios.

● Combined resources allow for the incubation and development of new apps and platforms (see below).

Features of the merged entity

The more comprehensive and stronger enterprise blockchain platform will include the following aspects:

● Multi-blockchain interoperability, leveraging proprietary blockchain technology built by APEX, while also building native bridges via smart contracts to the Binance Smart Chain and Ethereum.

● Decentralized applications for consumer enterprise use cases (customer data, CRM, marketing, loyalty, etc.)

● Decentralized applications for enterprise and 3rd party data use cases (market intelligence, market data, ESG, etc.)

● Larger enterprise ecosystem: B2C enterprises + financial companies.

● Decentralized AI federated learning platform with extended use case to market and ESG data from consumer data originally.

● HORIZON — New DeFi platform/app (see below).

HORIZON — The DeFi Platform for Real-World Assets

Preliminary Introduction

Horizon is a unique, differentiated DeFi platform from what is commonly understood as “mainstream DeFi” (liquidity mining, lending) focused on the real economy and enterprise ecosystem. Horizon will enable crypto-users to participate in an array of DeFi use cases outside of the traditional DeFi scenarios, at the same time reaping rewards for contribution to use cases that provide real-world value.

A summary of Horizon is as follows (detailed specific information to be released post-merger):

● Synthetic Asset Platform — Creation and liquidity provision for synthetic assets tied to real-world assets and instruments. Participants reap rewards/fees in tokens for providing stablecoin/maincoins to back synthetic assets as well as provide liquidity.

◆ Market indices — economic indexes, stock indexes, volatility, etc

◆ Corporate assets — such as loyalty and reward points

◆ Equity assets — private equity of technology companies

◆ Physical assets — ie. art, collectibles, etc

◆ Unique datasets of value — ie. ESG, intelligence reports, etc

● Multi-blockchain Interoperability — By leveraging cross-blockchain platforms such as Cosmos and Tendermint, the Horizon platform will ensure interoperability with distinct blockchains such as the Binance Smart Chain, Ethereum Blockchain, and NEO Blockchain, among others.

● Asset Verification — An experimental asset verification protocol will be developed to be a part of Horizon to enable verification and delivery of physical assets and other instruments that may involve delivery of assets. Though the initial focus will be non-tangible speculative assets, we will explore use cases for a proprietary asset verification protocol.

● DeFi Oracle — used to connect to price, economic, market, and demand data used to help price the synethetic instruments. (Similar to Chainlink) The oracle technology is being developed by APEX Network.

● Token Economy — the merged token can be used for the DeFi application and related staking/liquidity pools, and a new pool (TBD) of tokens will be minted for rewards on Horizon and will be released based on a logical/economic timeline. The existing staking and node programs will be synergized to work with Horizon, providing more lucrative incentives for the staking and node ecosystem.

Logistics — What to Expect

We understand that this may be a lot of information to take in, and much more specific information will be released in the following days in chunks, but below is a summary of what to expect:

Announcement/PR level:

◆ Preliminary Announcement (This)

◆ Official PR Release (October)

◆ Detailed logistics and mechanism of merger (late October)

◆ Whitepaper/Presentation of Horizon (November)

Logistics Level (APEX Network side):

◆ Pre-Registration for large holders of CPX and KYC for nodes

◆ Migration method selection (staking/liquidity mining preference)

◆ Merger implementation/execution (early November）

◆ Gradual merge of websites, communities, social media, etc

Additional Items/Notes

● The merger’s token exchange ratio will be 1:2.5, and is calculated based on a 60-day moving average (trailing average) of the price of both tokens. After thorough consideration, this is the best method of calculation of recent “smoothed” value, taking various factors such as volatility and outlier data points into consideration, and is a fair approach for both sides. Thus, 1 CPX (NEP-5) will be exchanged for market value proportional 2.5 PHB. After the value peg, it’s only natural that the value of the tokens pre-swap would be linked.

● Post-merger we will onboard a new group of core advisors and experts with backgrounds in blockchain infrastructure and DeFi, with key personnel from companies like Kava, Crypto.com, and more.

● We have formed a partnership with top blockchain marketing firm WXY Consulting who we will work with closely after the merger. Various top blockchain companies have chosen WXY as their premier marketing partner, including Terra, Hedera Hashgraph, MXC, FTX, and Huobi.