Welcome to another exciting installment of all things Connect Financial.
It’s hard to think of many other ways to describe the current crypto market apart from “boring”. I was asked recently whether the current bear market will affect Connect Financial’s launch plans or our entry into the market.
We have a token, so of course the team pays close attention to the market, but this is only part of the equation. My vision for Connect Financial has always been as a platform that thrives independent from what the rest of the crypto market is doing. The platform has use cases to help people make the most out of bull markets as well as protect their wealth while accessing the value of their crypto during downturns and sideways movements. Over time, Connect will grow into a crypto-first neobank, allowing our members to move quickly and easily between cash and crypto.
That’s a roundabout way of saying that there are no plans to delay the launch because of the current environment. As I’ve said consistently, MVP will be launched when the platform meets our technical, security, experience and compliance requirements.
We hope you’ll agree that the result will have been worth the wait.
Without further ado, let’s get into it.
General development update
The development on the frontend experience wrapped up in October, which is an exciting milestone for the team. It’s encouraging to see many of the core components shaped into something that we can interact with, use, and test.
The backend teams are deep in integration between our partners and the proprietary backend, and of course tests, tests and more tests are being queued up. In addition to our key feature development, we’re expanding the team again to bring on a dedicated DevOps function to continue to build out the production pipelines.
It’s been almost six months since I last gave the community an update on ConnectDAO, the investment and project organization that oversees the on-chain governance of Connect Financial and the Connect family of products and investments.
I’m happy to report that development on the core feature set of the DAO has been completed this week, with only a few quality of life improvements and small UI enhancements left to tidy up.
Here’s a sneak peek at the dashboard (showing test wallet data).
During the ConnectDAO build, we revisited the way in which CNFD holders are to be rewarded for their participation in the governance of the DAO. We decided to simplify the way that pCNFD is distributed, increasing the transparency for members.
- Performance fees are paid into the ConnectDAO Treasury from all of the DAO’s projects (including Connect Financial).
- DAO members create proposals to allocate a portion of the ConnectDAO Treasury to the Rewards Treasury.
- pCNFD are automatically minted by the smart contract and distributed to DAO members based on their proportional CNFD holdings of the total pool.
- pCNFD can be withdrawn or redeemed at any time for USDC and other ERC20 tokens.
The value of pCNFD is a function of the USD value of the Rewards Treasury and the circulating supply of pCNFD. This means that the Rewards Treasury always holds sufficient capital to redeem the circulating supply of pCNFD. In this way, pCNFD works similarly to a fully collateralized stable coin like USDC, without the restriction of always being pegged to $1.
Of course, pCNFD rewards are not to be confused with CNFI staking rewards — our members will continue to earn their share of a pool of CNFI tokens (currently 5,000 per day).
ConnectDAO launch and CNFD airdrop
It is likely that we will launch ConnectDAO and the Connect Financial MVP at around the same time, allowing the DAO to generate performance fees from day one.
OG Connect Financial members will receive their CNFD airdrop as part of the go-to-market activities.
As always, thank you for being part of the Connect Financial community and joining us on the journey.
Have a great week.