Principles of the exchange between Pi Futures and Pi

With the release of Pi Network testnet, the timetable for the mainnet launch has become clearer. Then the realization of the exchange function between Pi Futures and Pi, which has received much attention, has also entered the substantial development stage. Accelerating the circulation of Pi Futures and realizing the exchange between Pi Futures and Pi will benefit users in the two communities with no harm. From the perspective of technology, no person or organization can prevent these two open and decentralized systems from interacting and blending.

Solution I: Anchor Pi Network and Pi Futures via smart contracts

According to the plan of Pi Futures when the project was established, when Pi Network launches the smart contract feature, we will code the smart contract and deploy it on Pi Network mainnet and Ethereum at the same time. Users can send Pi Futures tokens to addresses on Pi Network through the dapp in Pi Futures wallet app. The actual process of the program is: Pi Futures tokens will be sent to the smart contract on Ethereum for staking; then the smart contract on Pi Network will send the Pi coins from the contract to the specified user address. Conversely, users can user the corresonding app in Pi Browser to send Pi coins to Ethereum addresses. The actual process is: Pi coins enter the smart contract on Pi Network for staking; then the smart contract on Ethereum sends Pi Futures tokens to the designated 0x address.

The advantage of this solution is that the feature is easy to use, and it can achieve the originally promised 1:1 exchange rate. But to implement this solution, Pi Network first needs to publish the development documents and support the smart contract feature; it also needs to open its account system just like other blockchain projects. The prerequisites are not yet available. In addition, this plan will also require upgrades of Pi Futures’ existing smart contracts to meet the potentially huge exchange volume.

Solution II: Exchange Between Users via Marketplace

In Pi Futures wallet, an off-the-counter (OTC) marketplace should be implemented, allowing users to bind their Pi Network addresses in Pi Futures wallet app. When a user wants to exchange Pi Futures for Pi, they need to find their counterparties in the marketplace; vice versa. For example, user A wants to use 2 Pi Futures to buy 1 Pi; he/she finds user B to trade with it. At this time, the wallet will first freeze 2 Pi Futures tokens of user A, and then send the Pi Network address of user A to user B; user B will notify the system after sending 1 Pi to user A on Pi Network; After user A receiving Pi coins, he/she comes to the system to confirm; the wallet then transfers 2 Pi Futures tokens to user B.

This solution is a bit more complicated for users, and makes the exchange rate of Pi Futures and Pi in a floating state. But the benefits are also obvious. The solution is not limited by the implementation of Pi Network’s smart contracts and the technical maturity of the mainnet.

Users can take advantages from the liquidity of Pi Futures. Pi Futures comes from Pi community and will give back to the community. Pi Futures team is pushing the technology forward and will release cryptocurrency wallet app in Q2, 2021. We are ambitious to serve more people to derive benefits from cryptocurrency through Pi Futures.

Pi Futures is now publicly traded on Uniswap. The current price is $2.24. Trading Link: https://uniswap.info/token/0xe875c61d4721424a6988e5fa2dfb8d6ca6af5c64

Disclaimer: Pi Futures (symbol: Pi) is ERC-20 token, and is neither the same nor the alternative of the cryptocurrency of Pi Network.