Core Concepts
GUILD
The protocol's native stable currency. GUILD is designed to be a sovereign, self-sustaining digital money backed by real assets that the protocol owns and controls.
3.Finance
A decentralized finance protocol designed to create a sovereign, stable, and self-sustaining currency called GUILD. It operates as a closed-loop economic engine.
Protocol Sovereignty
The principle that critical economic decisions are handled by hard-coded, autonomous logic rather than subjective governance votes. The system runs itself through code.
Closed-Loop Economic Engine
The self-reinforcing economic model where the protocol's revenue is continuously reinvested into its own growth and stability, creating a flywheel effect.
Architecture
DeFi Trident
The core architectural framework consisting of three pillars: Composability (modular structure), Convertibility (trust and value), and Sustainability (self-perpetuating cycle).
Composability
One of the three DeFi Trident pillars. Refers to the protocol's modular and upgradeable architecture, built from specialized, interoperable components.
Convertibility
One of the three DeFi Trident pillars. Provides the foundation of trust and value for GUILD through the Settlement Pledge and Protocol-Controlled Reserve.
Sustainability
One of the three DeFi Trident pillars. Achieved through a programmed economic cycle where generated assets are automatically recycled back into the system.
Sub-Protocols
The Guild
The issuance layer of 3.Finance. Responsible for minting GUILD, managing the treasury, and generating revenue through the Arbitrage Master Node.
The Reserve
The policy layer of 3.Finance. Responsible for governance, asset management, the Distribution Engine, PODs, Settlement Pledge, and Protocol-Controlled Vault.
The Grove
The operational layer of 3.Finance. Manages day-to-day operations, asset flow between The Guild and The Reserve, and the Signals system.
Stability
Settlement Pledge
A hard-coded guarantee that 1 GUILD can always be exchanged for 1 crvUSD. This is the first layer of defense and provides a firm liquidity floor.
Redirect Variable (RV)
A dynamic, automated risk-management rule that adjusts revenue allocation based on withdrawal pressure. If many people try to exit, more revenue flows to the Settlement Pledge.
Protocol-Controlled Vault
The long-term reserve of high-quality assets (primarily ETH) that serves as the ultimate backstop for GUILD's value. Not used for day-to-day operations.
Sunset Scenario
A pre-coded, hierarchical process for graceful shutdown in a worst-case scenario. Ensures creditors are protected and the system unwinds predictably.
Layered Stability Defenses
The multi-layered defense system: Settlement Pledge (Trust Floor), Redirect Variable (Self-Healing Buffer), and Protocol-Controlled Vault (Sovereign Backstop).
Legend Network
A sophisticated defense mechanism introduced in Stage 4. Legends are the most committed participants who lock 3NFTs and 3Bonds to become internal stability guardians, earning yield while performing defensive actions.
Legend Node
A specialized node operated by a Legend. Must lock a fixed bundle of 3NFTs and a variable amount of 3Bonds. Collects yield and uses it to curtail exit demand and fortify the vault.
Reserve Requirement Curve
A mechanism that dictates how much reserve must back GUILD at each phase. Governs automatic stage transitions based on on-chain metrics rather than subjective decisions.
Settler of Last Resort
The function of Legend-locked 3NFT yields to automatically cover any bad debt in the system over time. Because these yields are non-liquidatable, they provide a safety net against cascading failures.
Tokens
3Fi
The primary governance token of 3.Finance. Staked 3Fi generates VW3 for voting and POD allocation decisions.
3Pact
A non-fungible token (NFT) representing a bond-like capital commitment. Transitions from 'Adolescent' to 'Aged' state, with Aged 3Pacts representing claims on 10,000 GUILD.
Adolescent 3Pact
The initial state of a 3Pact NFT, acquired through a commitment of 10,000 crvUSD. Must mature to 'Aged' before the holder can claim GUILD.
Aged 3Pact
The matured state of a 3Pact NFT. Represents a future claim on 10,000 GUILD units. Holders are 'Protocol Creditors' entitled to ETH distributions.
PRIME3
A finite-supply genesis instrument (1,000 total) that can be converted 1:1 into an Aged 3Pact. Used for bootstrapping the protocol.
ALPHA
A finite-supply genesis instrument (800 total) that can be converted 1:1 into an Aged 3Pact. Offered at a discount during the foundational build phase.
3Receipts
Receipt tokens representing a position in deployed protocol pools. Holders can participate in Grove Interaction Governance.
VW3
A non-transferable measure of governance participation generated by staking 3Fi. Determines voting power and POD allocation parameters.
3.NFTs
Non-fungible tokens representing composed asset positions within the protocol. A key component of the protocol's composability.
crvUSD
Curve's USD stablecoin, used as the trust anchor for GUILD during the bootstrap phase. The Settlement Pledge guarantees 1:1 exchange with crvUSD.
ETH (Ether)
The native cryptocurrency of Ethereum. In 3.Finance, ETH is the primary reserve asset held in the Protocol-Controlled Vault.
3Bond
An Aged 3Pact that has been deposited into the Single-Sided Lending Pool (SSLP). Represents a claim on GUILD that can be lent to borrowers for interest income.
Distribution
Distribution Engine
An autonomous module that collects protocol revenue and allocates it to Purpose-Oriented Distributors (PODs) according to programmed rules.
PODs (Purpose-Oriented Distributors)
Designated channels that receive assets from the Distribution Engine to fulfill specific functions like development, rewards, and liquidity.
Developers POD
A POD that funds ongoing development and security of the 3.Finance protocol.
Creatives POD
A POD that supports community and outreach initiatives for the 3.Finance ecosystem.
Creditors POD
A POD that rewards Protocol Creditors (Aged 3Pact holders) with ETH distributions.
Reserve Booster POD
A POD that strengthens the protocol's reserves by adding to the Protocol-Controlled Vault.
Liquidity Booster POD
A POD that supports external market liquidity for GUILD trading.
Governance
Grove Interaction Governance
A governance layer allowing 3Receipts holders to participate in decisions about Deposit Pool parameters.
Guild Interaction Governance
A governance layer allowing 3Pact holders to participate in decisions about The Guild's spending parameters and budgets.
Reserve Governance
A governance layer allowing staked 3Fi holders to participate in high-level protocol decisions like asset whitelists and strategic direction.
Protocol Creditors
Holders of Aged 3Pacts who have specific entitlements within the protocol, including ETH distributions from the Creditors POD.
Operations
Arbitrage Master Node (AMN)
An automated system within The Guild that identifies and acquires mispriced assets from the open market, generating revenue for the protocol.
Signals System
A mechanism within The Grove that allows for programmable flow of assets between The Guild and The Reserve.
Genesis Activation
The process of transitioning the protocol from a schematic to an operational state, converting external capital into the initial energy for the sustainability flywheel.
Protocol-Held Assets (PHA)
The foundational reserve that generates the system's revenue stream. The capital formation target is to fund PHA to a near-sustainable revenue state.
Single-Sided Lending Pool (SSLP)
A Stage 4 lending pool where 3Bond holders deposit their GUILD claims. Borrowers can take loans in GUILD by posting collateral, and interest flows to the lenders.
Exchange Window
A Stage 5 feature that allows 3Bond holders to trade their bonds directly for ETH from the Protocol-Controlled Vault. Provides an alternative exit path for long-term stakeholders.
Vesting Schedule
When a 3Bond holder claims their GUILD from the SSLP, there's a 30-day cliff followed by 11-month linear release. This prevents sudden supply shocks.
Phases
Bootstrap Phase
The initial phase where GUILD uses crvUSD as scaffolding. The Settlement Pledge ensures 1:1 exchangeability during this period.
Self-Sovereignty Phase
The end goal where GUILD's value becomes backed by the protocol's own asset vault (ETH), reducing reliance on external stablecoins.
Stage 4: Credit Market Layer
The stage introducing a native credit market for GUILD. The SSLP and Legend Network launch together, creating a defended credit market.
Stage 5: Sovereign Ecosystem
The final stage where 3.Finance becomes a fully decentralized, self-sustaining economy. Features include open governance, the Exchange Window, and GUILD as a reserve asset for other protocols.
54 terms defined across 9 categories