Pharo Protocol States
Evolution of a Pharo
Our “Introducing Pharo” blog post gave the “Pharo Timeline” below, which we can use to follow the evolution of a Pharo. We also indulged the Egyptian characters, which is designed to help think through that evolution. Let’s explore the Pharo State philosophies in more detail.
We all know that Mummies can rise again! Mummies are hibernating Pharos, all they need are Cover Buyers and Liquidity Providers to believe in their power to deliver, and they’ll rise to the occasion.
A Mummy is created by spending $PHARO to bring a logical event condition on-chain, such as “wind > 70mph @ zipcode X” or “rainfall > 8in @ zipcode Y”. The available logical event options are listed on the Pharo site or the Pharo API, enabling anyone to build with Pharo.
In ancient Egypt, before the pyramids were built, the Pharaoh’s brought the northern and southern kingdoms together by managing the volatility around the flooding of the Nile. The Pharaoh’s unique connection to the bounty that the Nile brought enabled them to create the rules for society, enabled them to rule, for continued success in the future.
A Pharo exists until the logical event condition is triggered, or time expires, both of which are set by the user providing $PHARO. As more Cover Buyers and Liquidity Providers stake their fiat, the Pharo protocol ensures those who take the most risk get the most reward, incentivizing Cover Buyers to get in early and Liquidity Providers to pay better odds while remaining profitable in the long term.
Imhotep was an ancient Egyptian high priest and chancellor who rivaled Pharaoh. When Imhotep undermined Pharaoh’s rule and the stability it brought, he made cooperation and society as a whole impossible.
Pharo rebalances the odds tranches as new Cover Buyers (CBs) and Liquidity Providers (LPs) stake their assets, with a goal of incentivizing better odds for early buyers. Eventually there comes a time everyone knows the outcome of the event; The hurricane is clearly turning, the wind picked up, the barometric pressure dropped, and all the animals are fleeing like it’s The Day After Tomorrow. It’s here Pharo stops rebalancing and Imhotep takes over; new LP’s can only provide cover for unmet CB demand.
Anubis is the god of the dead, he guides lost souls through to the afterlife.
Once the Event is triggered either way, Anubis automatically makes payments to all accounts, mints an Obelisk, and officially closes the Pharo.
An Obelisk is a monument to the memory of Pharaoh and the consequential events during their rule.
Once all accounts are paid, disputes need to be settled. People read and hear different things when promises are made, so an Obelisk keeps an exact record of contracts and transactions in a NFT so payouts can be reconstructed and disputes settled.