Pharaoh Exchange: Liquidity, Voting, and the xPHAR Transition

Navigating the next chapter for Pharaoh Exchange, this article explores the DEX's high-efficiency liquidity and the evolution of its governance from vePHAR to the new, simplified xPHAR model.

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Oct 06, 2025

Pharaoh Exchange is carving out its place as a prominent next-generation DEX on Avalanche. Its goal? Offer high efficiency concentrated liquidity, clean token incentives, and a governance model that evolves with user needs. As of late 2025, the team is rolling out version 3 including xPHAR which is intended to replace the older vePHAR system. In this article, we’ll walk through how things work today, what’s changing under xPHAR, and where Pharaoh is headed.

Current Offerings

Liquidity Pools

Pharaoh leverages concentrated liquidity on Avalanche’s C-Chain. Rather than deploying capital across a wide price range, you can pick tighter bands where you believe price will trade. This makes capital more efficient because liquidity providers stand to earn more from fees when the market stays in range.

There are both volatile pools (for pairs with big price swings) and stable pools (for closely correlated assets) so LPs can match strategy to pair type.

Swaps

The swap interface is simple, but under the hood it evaluates routes through those liquidity bands to deliver competitive pricing. Traders benefit from lower slippage in concentrated zones when liquidity is placed smartly.

Voting & vePHAR

Depending on when you read this, the legacy vePHAR system is likely phased out already. We are discussing it here for historical context and to help you understand the next phase.

Prior to the V3 upgrade, governance was handled by vePHAR, which you got by locking PHAR tokens. The longer you are locked (up to 4 years), the more voting power (vePHAR) you receive.

Each week (epoch), vePHAR holders vote on gauges, which simply means you have a say in which liquidity pools should receive PHAR emissions. The emissions plus platform fees are streamed back to the pools you vote for.

In other words: lock, vote, direct emissions, and earn. That creates alignment between liquidity and incentives in the system.

xPHAR: The Next Model

Pharaoh is migrating to V3, with xPHAR replacing vePHAR. The transition begins October 8 2025, with LP rewards from V2 continuing until October 15.

What’s different?

No more re-locking or timers. With vePHAR, you had to lock for varying durations, but xPHAR offers permanent, non-expiring voting power.
One-time migration. vePHAR holders will convert into xPHAR. Post migration, the system is simpler and more beneficial.
Deflationary edge. Exiting or selling xPHAR burns 50% of the tokens you convert, giving a built-in deflationary mechanism.
Same emissions + fee share. The total PHAR distributed and the fraction of fees going to governance remain unchanged. What changes is how flexible and permanent your participation is.
PHAR split. Ahead of migration, there will be a 5,000:1 token split to improve entry conditions.

The overall idea is to reduce friction, remove the hassle of renewing locks, and convert governance into something more like “buy and hold.” Essentially, the simplicity of holding a token meshes with serious governance utility.

Final Thoughts

Pharaoh is far more than another swap box on Avalanche. It’s a DEX built around incentive alignment, capital efficiency, and evolving governance. The upcoming xPHAR model promises to simplify the user experience while preserving what matters - emissions, voter returns, and disciplined liquidity providing.

As xPHAR goes live, the key questions to watch: Will users embrace the burn-on-exit model? Will liquidity shift in line with votes more responsively? And will the system maintain fairness under new pressure? For traders, LPs, and active voters alike, the next chapters of Pharaoh are ones to monitor closely.

If you’re already holding PHAR or participating in liquidity providing, make sure your vote gets cast during migration. The future of the DEX you use might depend on how well this transition is managed.

Learn more here:

Website: https://pharaoh.exchange/
X Profile: https://x.com/PharaohExchange
Official Documents: https://docs.pharaoh.exchange/