🟢Standard

A modernised approach to old-school compounding.

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Standard compounding.

Release 1.

Release 1. Standard: Where emissions received by the CDP are consolidated into the pools native token and redeposited.

For term definitions, see here.

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Objective.

A standard compounding strategy is the default for many DeFi farming protocols. Principally, the objective is to farm rewards (referred to as emissions on 3.Finance), then sell/swap these for the same asset deposited into the CDP.

The next time this process repeats, the balances incorporate consolidated emissions from the previous cycle and thereby compounding the deposit balance of that pool.

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 public release of this feature.

To opt-in to this strategy:

• CDPs: this strategy may be the default strategy applied. If this is the case, nothing more need be done. If not, the walkthrough below will apply.

• LDPs: this strategy is not applicable to LDPs.

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. The 'CDP' tab is active by default; find the CDP you're interested in and select 'More',

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

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

Release 1 - Claiming is optional.

Not claiming will achieve the above objective without further optionality. Moving all or part of a balance from child to parent in this strategy will not effect the objective but it will enable optionality at the level of the parent.

See the 'Concentrated' strategy for insight.

Note. LDPs are unable to signal themselves. This is exclusively a function of CDPs.

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Other strategies.

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

Concentrated compounding.

Hyper compounding.

Looped compounding.

Boosted loops.

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