The Phonon Brief #3: Jan 7-Jan 13

Published in

Phonon DAO

4 min readJan 13, 2022

Welcome to the 3rd edition of The Phonon Brief. The DAO has decided to share our weekly updates on the official blog, but you can also follow us on Twitter and subscribe to the original newsletter on Substack — check it out if you missed the first two editions!

Our aim with this newsletter is to keep the both the dedicated Phonon community and the wider crypto world informed of the latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Phonon, be sure to follow Phonon DAO’s official Twitter and Medium accounts as well!

Summary

PDBG First Meeting
Ondo Liquidity
Phonon Protocol for Devs
Chain Analysis

PDBG First Meeting

The first Phonon DAO Bootstrapping Group meeting took place Wednesday, Jan 12. The meeting started off by discussing the status of the Ondo Vaults which will be discussed later in the brief.

Next the issue of a deadline for converting GRID to PHONON was addressed. As it stands there is a minimum of one year until the redeemer contract can be changes by a vote from the DAO. There were mixed reactions regarding if/when the deadline should be. The issue was tabled and will be readdressed closer to the end of the year. It does seem likely that a deadline will be implement at some point in 2023–2024.

The meeting then shifted to discussing the roadmap, in particular which project should be developed first. Consensus regarding this topic was to pursue the Cross-Chain DEX for a variety of reasons. With this approach we can utilize and existing userbase of Lattice1 owners. Taking on some of the other projects like a p2p payment systems is a much longer scale project since it would involve changing how money is transacted and who accepts these payments.

Another project that is a priority for the DAO is to work out the eSIM specificatios and cert to enable a Phonon applet to be installed on smartphones which creates an immediate network effect by enabling 1 billion+ users to interact with the Phonon Protocol.

After the meeting specific working groups were created to focus closer on R&D and product market fit, governance structure, liquidity, and marketing. If you have any interest in being a part of the discussion for these topics, head over to the Phonon Discord.

Ondo <> Phonon

Ondo Finance and Phonon DAO will be launching a FRAX-PPHONON liquidity pool on Monday. This will be $2m PHONON and $2m FRAX.

There were plans to do a PHONON-ETH pool as well but that is being put on pause for now. This pool would have worked by having the DAO deploy $2m of PHONON and allowing the community to stake ETH at a fixed 7% APY. The Ondo team feared this would not be high enough to attract the wider community and recommended something closer to 20%. The PDBG decuded not to move forward with this and we will reassess after seeing the results of the FRAX pool.

Frax Finance has a liquidity program going that current pays out 500 FXS per week per $1m of FRAX liquidity. With a $2m loan this equates to 1000 FXS per week or about $40,000 at current FXS price. One option was to increase this pool with the $2m in PHONON originally planned to go into the ETH pool but valid concerns of the risk of a PHONON price decline were brought up so the additional liquidity will be put on hold as we watch and see the results of the first pool.

Phonon Protocol for Devs

Last week the Phonon Alpha was released. If you are interested in hacking around with the Phonon Protocol check that out here.

This week some additional resources were published to help with current and future development on Phonon. First Nate, published a How it Works post on Github along with an architecture diagram covering how various pieces of the Phonon software fit together.