Phoenix PHB Utility Mechanisms, Fiat Onramp, & Consortium Buying

Dear Phoenix Community,

As we have introduced earlier, the Phoenix Core Development team is creating various ways for adoption of the Phoenix network (Oracles, Blockchain, and DataX) that would minimize friction and simplify various use cases, ultimately lowering the barriers to adoption and accelerating use cases.

Specifically, our last article talked about separating the entire platform into components. These “products”, or modules enable users to pick which is the easiest and most suitable use case for them. They are able to start via data verification for data exchange or AI-related datasets, or simply acquire new datasets via vendor APIs via DataX. This gives them much more choice in quick applications to engage with the Phoenix ecosystem other than only using the Phoenix blockchain.

This is why today we would like to discuss mechanisms we’ve explored and designed to maximize adoption speed for enterprise users, at the same time of benefiting the Phoenix ecosystem and token value. Specifically we would like to outline mechanisms for fiat/stablecoin onramping, as well as what we call consortium buying.

Data Services Onramp

We will start experimentation of these onboarding methods as early as mid-May, and are likely to optimize and improve on these processes as deemed suitable. The chart below illustrates the initial process for data services onramp.

Initial Onramp Design for Data Services

What we refer to data services are services that can be delivered on a transactional per data basis — so this means accessing data feeds via Phoenix Oracle. It may look complex but for the end-user it’s really simple:

  • The end user, which could be an enterprise, business user or partner would be paired with a service provider or agent that can service them contractually. This would depend on geography and location but may be just Phoenix Core Dev if the user is Asia-based.
  • The end user will receive “credits” for a fixed payment sum of fiat/stablecoin in return that they will be able to use with Phoenix Oracles/DataX. These credits will work on-chain, and are likely to be pegged 1 credit: 1 USD, working effectively like a stablecoin. The purpose of credits is to separate data services pricing and settlement with PHB, which price is dynamic.
  • The service provider will be in charge of sending the balance as a stablecoin (USDT/USDC/BUSD) to the algo execution firm (purchasing agent), which currently for most purposes is Principle68, our market making partner.
  • The sum is then separated into average cost basis (estimated around 85%) and margin (around 15%). Cost basis refers to the cost of the data from the data partners. The margin refers to the margin or discount that Phoenix DataX can obtain as a “wholesale” or distribution role.
  • The cost basis will be used to algorithmically execute TWAP (time-weighted average price) buy orders on the exchange and ultimately converted fully into PHB, which will enter the Phoenix Ecosystem Reserve. The margin will directly be sent as stablecoin to the reserve to help hedge principal risk.
  • Phoenix Ecosystem Reserve will use its own fiat/stablecoin balance sheet to transact with 3rd party data partners — in this way it takes a form of principal risk.
  • Effectively one can see how this may help ecosystem growth as well as token value.

Consortium Buying

An alternative to standalone one-party purchase transactions of credits, for larger sums and transactions we are able to have a similar or alternative model of “consortium buying”.

Initial Onramp Design for Data Services (Consortium Buying)

A consortium may consist of 2 or more parties that may have similar timing of purchase of services and credits. As the sum of a consortium buy would be larger (ie. >$200,000), it will increase the liquidity of PHB and have certain positive effects. As a tradeoff, in this method of purchase, both cost basis and margin will be used for exchange execution of PHB. The tradeoff is understandable as consortium buys decreases Phoenix reserves’ principal risk as well.

The benefit of consortium buying is that Phoenix Core Development team is able to participate with enterprise users and other parties as well, and the process is similar to a buyback but with enhanced size.




Blockchain Enablement of the Real Economy.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Tezos rStake Integration Now Live! Earn Up To 160% Of Your Usual XTZ Yield

Nearly half of millennials prefer bitcoin over equity and real estate

Why you should attend the upcoming Lagos Blockchain Conference

Introducing MOVE Network

Weekly Highlights: Crypto News

NFT Comics-Season #1

Weekly Market Report - 20th April 2019

Secretum — The Secure Solana Blockchain-Powered Messaging And Crypto Trading Platform

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Phoenix Global

Phoenix Global

Blockchain Enablement of the Real Economy.

More from Medium

Dissecting Across Protocol (2)

Sweetgum Labs Won the First-ever Topl Developer’s Grant

Meet the Glitchy Bunnies

WeFund Announces Team Up with Danxia Capital