➿Looped

Rotational position building with optional boosts for each CDP.

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Looped compounding.

Release 1.

Release 1. Looped: Where emissions from a CDP is used to boost the native balance of another CDP and visa versa.

In the release 1 diagram above, emissions received by the children will each self-compound due to the limitations of release 1.

To increase the flow of emissions within the parent defined loop, periodic claims will be required. This moves the native balance from child to parent, which enables the parents signal to be upheld.

Or migrate all balances to release 2.

For term definitions, see here.

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Objective.

Looped compounding strategies involve the use of emissions earned by one CDP (1) to be directed to another CDP (2) and for that CDPs (2) emissions to be directed to yet another CDP (3). This process repeats until emissions from CDP (N) are directed back to CDP (1).

The length of the loop depends entirely on the number of CDPs in the daisy-chain. The more CDPs in the loop, the greater the potential to which diversification may occur.

Example:

CDP 1 emissions >>> CDP 2, CDP2 emissions >>> CDP 3, CDP 3 emissions >>> CDP 1, repeat.

Release 1 children are only able to self compound. Therefore, moving a balance from Child to Parent enables optionality through the signal command.

Key benefit: The ability to always have a portion of a position in a 'self-compound' state.

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Walkthrough.

A UI guide will be produced and released just prior to release.

To opt-in to this strategy:

• CDPs: review the walkthrough below.

• LDPs: review the walkthrough below.

1. Navigate to the 3.Finance platform,

2. Connect your wallet,

3. Enter the 3.Finance App by selecting to 'Compose Assets',

4. Navigate to the Emissions space within the App,

5. Looking for a CDP, then: The 'CDP' tab is active by default; find the CDP you're interested in and select 'More', OR Looking for a LDP, then: Select the 'LDP' tab, then find the LDP you're interested in and select 'More',

6. An action panel will reveal itself. Set the signal to the CDP of your choice by selecting its icon in the list available and successfully completing a 'Set Signal' transaction on-chain.

The signal is now set to compound into the signalled CDP and will remain so until you change the signal to point towards a different CDP.

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Other strategies.

Familiarise yourself with other strategy ideas, you never know when they may become useful.

Standard compounding.

Concentrated compounding.

Hyper compounding.

Boosted loops.

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