What is GUILD?
GUILD is the stable currency at the heart of 3.Finance. But it's not just another stablecoin—it's designed to be a sovereign, self-sustaining digital money that doesn't depend on any company, government, or algorithm to maintain its value.
The Simple Explanation
Imagine you have a piggy bank that:
- Earns its own money — It invests and generates returns automatically
- Protects itself — If someone tries to break it, it has multiple layers of defense
- Guarantees your withdrawal — You can always get your money out at a known rate
- Runs without a manager — No CEO, no company, just code that follows rules
That's GUILD. It's digital money designed to be stable, reliable, and completely independent.
How GUILD Compares to Other Stablecoins
| Type | How It Works | The Risk | Example |
|---|---|---|---|
Centralized | A company holds dollars in a bank. You trust them to have the money. | Company can fail, freeze funds, or lie | USDT, USDC |
Algorithmic | Math formulas balance supply and demand. No real backing. | Can collapse in a "death spiral" | UST (failed) |
Debt-Collateralized | Users lock up more crypto than they borrow. Backed by redeemable debt collateral. | Debt collateral can lose value rapidly | DAI, LUSD |
GUILD | Backed by earned equity (Vault ETH), not debt. Non-redeemable, self-sustaining. | Multiple defense layers, coded shutdown plan | GUILD |
GUILD's Three Promises
These aren't marketing claims—they're built into the code itself.
The Settlement Pledge
You can always exchange 1 GUILD for 1 crvUSD (a stable dollar equivalent). This is a hard-coded guarantee, not a promise from a company.
Vault vs. Treasury — Two Pools, Two Purposes
GUILD is backed by the Vault (Pristine ETH + AutoETH) managed by The Reserve — earned equity, not redeemable debt. Separately, the Treasury (Grove Holding Contract) holds Protocol-Held Assets (PHA) that back 3Fi governance equity. No cross-contamination — Treasury PHA volatility cannot affect GUILD stability.
Self-Sustaining
The protocol generates its own revenue and reinvests it. No need for external funding, donations, or token sales to keep running.
Think of GUILD Like a Precision Engine
The Core (Dual Backing)
Two separate stores: the Vault holds Pristine ETH + AutoETH backing GUILD as earned equity, and the Treasury (Grove Holding Contract) holds PHA backing 3Fi — two pools, two purposes, no cross-contamination.
The Outer Shell (Settlement Pledge)
The outer layer controls what goes in and out. It ensures you can always withdraw your value at the guaranteed rate.
The Subsystems (Sub-Protocols)
Specialized components handle different functions—The Guild issues currency, The Reserve manages assets, The Grove handles operations.
The Energy Flow (Distribution Engine)
Revenue flows through the system like fuel through an engine, powering development, rewards, and growth.
Common Questions
Is GUILD pegged to the US dollar?
Not exactly. GUILD is designed to be exchangeable 1:1 with crvUSD (a stablecoin that tracks the dollar) through the Settlement Pledge. But the long-term goal is for GUILD to derive its value from the protocol's own assets, not from any external currency.
What happens if everyone tries to withdraw at once?
This is called a 'bank run,' and 3.Finance has multiple defenses. First, the Settlement Pledge provides immediate liquidity. Second, the Redirect Variable automatically diverts more revenue to refill the pledge. Third, the Protocol-Controlled Vault serves as a final backstop.
Who controls GUILD?
No single person or company. The protocol is designed to be 'sovereign'—meaning it runs according to code, not human decisions. Governance exists for upgrades and parameters, but core operations are automated.
How does GUILD make money?
The protocol's treasury holds yield-generating assets. The Arbitrage Master Node also finds and exploits price differences in the market. All this revenue flows back into the system.