Signals
A reward-flow management system that realises a new paradigm of priorities.
Last updated
A reward-flow management system that realises a new paradigm of priorities.
Last updated
Designed to give depositors optionality and flexibility, signals inform 3.Finance how emissions are to be used: compounded or liquidated. Here are five (5) variations of compound strategies one may utilise:
Where emissions received by the CDP are consolidated into the pools native token and redeposited.
Where emissions from one or more CDPs are used to boost the native balance of another CDP.
Where emissions from one or more CDPs and one or more LDPs are used to boost the native balance of another CDP.
Where emissions from a CDP is used to boost the native balance of another CDP and visa versa.
Where emissions from one or more LDPs are used to boost a Looped CDP setup.
Being a 'set-and-forget' system, signals require no transaction if the defaults are accepted by the user. Changing the default signal is simple and may be updated at any time by selecting an alternative CDP and completing a transaction to update the smart contract state.
Flexibility in directing emissions between CDPs opens up new strategic possibilities and means decisions to pivot can occur in a single transaction.
Add 3.NFTs to the mix and a new level of optionality is realised; one which enables to pivot from building positions with their rewards, to instead liquidate their rewards to generate a disposable cashflow. This works in reverse as well, enabling Natives to pivot back to compounding their positions simply by burning their 3.NFTs.