3Fi
3Fi is the governance equity token of 3.Finance — the second half of a dual-token architecture where GUILD serves as the sovereign currency and 3Fi represents governance weight and Treasury claims.
Dual-Token Architecture
GUILD
Sovereign Currency- Backed by Vault ETH (Pristine ETH + AutoETH)
- Earned into existence through PACTs
- Settlement Pledge as constitutional floor
- Non-redeemable equity — no holder has claim on Vault
3Fi
Governance Equity- Backed by Treasury PHA (Protocol-Held Assets)
- Minted through GuildSwap FARM mechanism
- Staked for VW3 governance weight
- Sunset claim on Treasury (after GUILD obligations met)
No Cross-Claims — Stability Isolation
Vault ETH cannot be claimed by 3Fi holders. Treasury PHA volatility cannot affect GUILD stability. The two backing pools are constitutionally separated.
GuildSwap FARM — The RePeg Mechanism
The GuildSwap FARM is how 3Fi is minted and how the Treasury is bootstrapped without external capital raises. It operates as a RePeg mechanism — exchanging discounted derivatives (such as sdCRV) for full USD value.
Discounted Derivatives In
Users deposit discounted derivatives (e.g., sdCRV trading below peg) into the GuildSwap FARM at full USD face value.
GUILD + 3Fi Minted
GUILD mints 1:1 vs USD value. 3Fi mints on a decaying distribution curve — early participants receive proportionally greater governance weight.
Treasury Grows
The deposited derivatives become Protocol-Held Assets (PHA) in the Treasury — generating yield through the Grove's strategies. The Treasury is bootstrapped through protocol activity, not external fundraising.
VW3 — Voting Weight
VW3 is the non-transferable voting weight that powers governance across all three domains. It is minted at a 4:1 ratio vs staked 3Fi — meaning 1 staked 3Fi generates 4 VW3 tokens.
Key Properties
- Non-transferable — cannot be sold or traded
- 4:1 mint ratio vs staked 3Fi
- Used for pause power in Grove and Guild domains
Unclaimed VW3
VW3 that remains unclaimed does not decay or disappear. Instead, it boosts Creditor POD distributions — meaning unclaimed governance weight redirects value to Protocol Creditors. This creates an incentive to either participate in governance or accept that your weight benefits the protocol.
The 3Fi Sunset Claim
3Fi holders have a sunset claim on remaining Treasury assets — but this claim is exercisable only after ALL GUILD obligations have been satisfied.
Priority Hierarchy
GUILD Obligations First
All GUILD-related obligations must be fully satisfied before any 3Fi claims can be exercised.
3Fi Claims on Remaining Assets
Only after GUILD obligations are met can 3Fi holders exercise claims on remaining Treasury assets.
Currency Holders Protected First
This priority hierarchy ensures GUILD's stability is never compromised by governance equity claims.