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Phi from Trustline comes to SGB


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Phi (pronounced “fee,” or anglicized as “fie”) is the Songbird version of Aurei. We are creating the coin (currency code: PHI, symbol: Φ) to distinguish it from Aurei (pronounced “ore·ae” or “ore·ai”) on the Flare network, since they will both be tradable on the XRP Ledger’s decentralized exchange and will likely trade at different prices.

Phi is the experimental prototype for Aurei. Its name originates from the first currency of the modern Greek state. The name was that of the mythical phoenix bird and was meant to symbolize the rebirth of Greece during the still ongoing Greek War of Independence. But that’s not all — the phoenix motif shows up in the 1988 cover story in The Economist titled “Get Ready for the Phoenix”. The article discusses the idea of a world currency that is free from currency exchange rate instability and resulting economic turmoil. The author predicts the use of an international currency alongside national currencies, and the world is better for it. Phi represents the rebirth of currency in the digital form. The greek letter Φ also represents the golden ratio.

As previously mentioned, both Phi and Aurei will be represented on the XRP Ledger as trustless tokens. Both coins are transferrable to the XRP Ledger from their originating networks (Songbird/Flare) via the Solaris bridge. A natural consequence of their coexistence on the XRP Ledger is the conversion rate between them. The goal is to maintain a 1:1 ratio unless Phi moves from a pegged stablecoin to an unpegged stablecoin. If governance implements Phi as an unpegged stablecoin, then the conversion rate will float with respect to Aurei; that is, until the same decision is implemented for Aurei.

There is a much more interesting consequence of the PHI-AUR pair on the XRP Ledger’s exchange. Payments can leverage the order book liquidity, the trustless token model, and the Solaris bridge to leverage cross-chain & cross-currency payments. For example, a payment originating in PHI on Songbird can be (1) transferred to the XRP Ledger via Solaris, (2) then a payment can be initiated and instructed to consume PHI-AUR liquidity to convert PHI into AUR in the first path step, (3) and then be sent to a trustless issuing account in the second path step; (4) once the transaction is verified by the state connector, the AUR is available for collection by the intended recipient on Flare. A transmitter could transfer value from Flare to Songbird and vice-versa using the XRP Ledger as an intermediary, without a central counterparty. We intend to ensure that TCN governance tokens can be migrated from Songbird to Flare in this manner.

Edited by Seoulite
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3 hours ago, Seoulite said:

A transmitter could transfer value from Flare to Songbird and vice-versa using the XRP Ledger as an intermediary, without a central counterparty.

It seems like a lot of people are focusing in on this as an important point. I don't know enough to get excited about it, but the more links the better.

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