The Legend Network
The Legend Network is a sophisticated defense mechanism introduced in Stage 4. Legends are the most committed participants who lock significant assets to become the protocol's internal stability guardians.
What is a Legend?
Think of Legends as the elite guardians of the 3.Finance ecosystem. They're participants who have demonstrated extreme commitment by permanently locking significant assets into the protocol.
In return for this commitment, Legends earn revenue from their locked assets while simultaneously performing critical stability functions for the entire system. Their incentives are directly tied to keeping GUILD stable and growing the protocol's reserves.
Legend Node Activation Requirements
To activate a Legend Node, participants must lock two types of assets permanently.
Fixed Bundle of 3NFTs
Locked Yield-Bearing Positions3NFTs represent composed asset positions within the protocol—essentially deposit receipts that continuously generate yield. Legends must lock a fixed large bundle of these positions.
Key Point: These locked 3NFTs are non-liquidatable and continuously generate yield, which the Legend Node uses for defensive actions.
Variable Amount of 3Bonds
Aged 3Pacts / Credit Positions3Bonds (Aged 3Pacts) represent claims on GUILD. When locked by a Legend, the corresponding GUILD is permanently committed to the Single-Sided Lending Pool (SSLP).
Critical Effect: This creates a permanent supply floor in the SSLP—GUILD that can never be withdrawn, ensuring baseline liquidity always exists.
How Legends Earn Revenue
Each Legend Node becomes a mini revenue center, aggregating yield from multiple sources.
Interest from Locked GUILD in SSLP
The GUILD corresponding to locked 3Bonds is deposited into the Single-Sided Lending Pool. Borrowers pay interest to use this GUILD, and that interest flows to the Legend.
Yield from Locked 3NFT Positions
The locked 3NFTs represent yield-bearing DeFi positions that continuously generate returns. All this yield is aggregated by the Legend Node.
Combined Revenue Stream
All collected revenue (in crvUSD) is then used autonomously by the Legend's Master Node to perform defensive actions that protect and strengthen the protocol.
Hierarchy of Defensive Actions
The Legend's Master Node uses its collected crvUSD in a specific hierarchy of actions designed to protect GUILD's stability.
Curtail Exit Demand
When users try to redeem GUILD through the Settlement contract, the Legend's Master Node uses its crvUSD to directly buy that GUILD from the redemption pool.
Effect: Users get their crvUSD (from the Legend's contribution) without tapping the global reserves. Legends become "buyers of last resort" for GUILD when there's sell pressure.
Fortify the Vault
If there's crvUSD remaining after handling redemptions, the Legend Node sends it to the Reserve. The protocol then mints new GUILD for that crvUSD (at 1:1) and swaps the crvUSD for ETH to deposit into the Vault.
Effect: This permanently increases the protocol's intrinsic backing. Any excess yield Legends gather is converted into strengthening the Protocol-Controlled Vault (Layer 3 defense).
Settler of Last Resort
Bad Debt ProtectionThe locked 3NFT yields serve as a "settler of last resort" for the entire system. Because Legends' 3NFTs are locked and non-liquidatable, their income can automatically cover any bad debt that occurs in the system over time.
How This Works
If a borrower defaults and creates bad debt in the SSLP, the system doesn't collapse. Instead, it can rely on the continuous yield streams from Legend-locked 3NFTs to gradually pay off the bad debt. This provides a safety net that prevents cascading failures.
Why the Legend Network Matters
Aligned Incentives
Legends earn by performing stabilizing actions. Their profits come directly from defending GUILD's peg and growing reserves.
Permanent Liquidity
Locked 3Bonds create a permanent supply floor in the SSLP, ensuring baseline liquidity always exists for borrowers.
Internal Defense
The credit market can expand while being continuously defended from within by its most committed stakeholders.
"Legends are tied directly to the mechanism that protects GUILD's liquidity and grows its foundation—they monetize by being defenders of the protocol."