Deposit Pools
A new perspective, a new paradigm.
Last updated
A new perspective, a new paradigm.
Last updated
Two types of deposit pool exist reflecting the communities desire and interest with respect to portfolio construction; long term holdings () vs. short term farming opportunities ().
A 'CDP' is a 'Compound Deposit Pool'.
Intended to aid a user in compounding the native asset of that pool using emissions, received by that pool or directed to it from another CDP or LDP.
CDPs are useful ways of growing asset balances long term.
A CDP is constructed in two parts: the Parent and a Child.
The parent represents balances deposited by the user. The child represents balances accumulated by the protocol using the emissions received.
When the signal is changed or a withdrawal triggered, the balance held by the child withdrawn to the connected wallet along with any other transactional instructions.
A 'LDP' is a 'Liquid Deposit Pool'.
LDPs allow users to engage in farming opportunities while using received emissions to boost the compounding activity of a user's existing CDP positions.
Note.
A LDP has only one part to its construction: the Parent.
In this manner, the emissions earned by the LDP are swapped for the native asset of the CDP being targeted. Adding a 'boost' to the CDP's ongoing compound activity.
Deposit pools are multi-dimensional in that they introduce composable receipts capable of changing the function applied to rewards for specific deposits.
By default, deposit receipts direct rewards along compound paths to grow balances of targeted CDPs as shown below:
CDP deposit receipts can be used to compose '3.NFTs', redirecting rewards down a liquidation path:
For those deposits who's receipts have been used to compose a 3.NFT, their emissions (rewards), are differentiated through contract custodianship in the Child. Here they are self-compounded until called for liquidation. Upon this call, the Child balance is withdrawn and converted to stables before being distributed to 3.NFT holders.
Users set a which defines how emissions earned by the parent are used. The child simply compounds the native asset held on deposit by the parent if emissions are directed to it.
Signals are a reward-flow management system that complement our deposit pools.
Given enough voting weight, the community has the ability to a deposit pools' state from LDP to CDP.
The parent represents balances deposited by the user. As the parent has no child, it's requirement must always be set to a CDP.
There is a lot more to learn about composing 3.NFTs. Learn about .
