GuildSwaps
Arbitrage farms.
Last updated
Arbitrage farms.
Last updated
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The Guilds' inaugural product; GuildSwaps, also referred to as 'Swaps', enables wrapped token using an on-chain, over-the-counter approach.
Swaps is also the first of only two methods to available for 3Fi tokens: 3 Finance's native asset.
3Fi tokens account for all assets held by the Grove's Holding Contract. As such, 3Fi tokens are valued according to the aggregate market value of those assets held by the Holding Contract, divided by the number of claimed 3Fi tokens.
3Fi token farming is expected to take precedence over arbitrage during the startup phase of the 3.finance project. 3Fi tokens are limited by governance controlled tranches, as are the issuances of GUILD tokens while tranche driven growth remains in effect.
Tranche driven growth presents a good opportunity for early farmers: by taking advantage of token scarcity, farmers are able to reap early GUILD settlements & benefit from protocol-held-asset (PHA), compound activities that translate into more valuable 3Fi tokens.
What enables farmers to reap their rewards, results from the Grove's Holding Contract activity. As referenced in the 'GuildSwaps flow diagram' above:
When a swap occurs, GUILD is issued and 3Fi tokens allocated to the connected wallet.
Swapped tokens (A) are passed to the Holding Contract and each deposited into a CDP.
Deposit receipts are composed into 3.NFTs.
3.NFT emissions are liquidated to facilitate settlements.
As the described protocol benefits grow in size, so will the potential for ever greater settlement liquidity. As evidence of growing settlement liquidity grows, along with a few usability enhancements, we believe this will foster the confidence required to entice arbitrage traders to participate.
3Fi tokens are allocated to Swap participants according to a 3Fi-token that is based upon the size of a Swap and the total number of already outstanding GUILD tokens.
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