Compound Engine
Protocol Interaction Pools
Core Function
The Deposit Pools are core modules of the 3 ecosystem. They enable participants and the protocol to deposit assets and interact with a system of automated reward logic, providing programmatic control over how those interactions are managed within the protocol.
The Pools: CDPs vs. LDPs
Two specialised pool types operate with different programmed parameters:
Compound Deposit Pools (CDPs):
The primary modules for asset interaction.
Parent & Child Balances: Deposits in a CDP are recorded as a "Parent" balance. Protocol-generated interactions can be directed to any CDP, where they are tracked as a "Child" balance.
Governance Path: Through governance, the asset underlying a CDP can be added to the protocol's list of assets for its acquisition logic.
Liquid Deposit Pools (LDPs):
Specialised pools designed with fixed parameters.
Directed Interactions: LDPs are programmed to distribute their protocol-generated interactions to designated CDPs.
Upgrade Path: Through governance, LDPs can be reconfigured to operate as CDPs.
The Core Mechanism: 3Receipts
When an asset is deposited into a pool, the participant receives a 3Receipt token. This token represents a position in the underlying deposit and its accrued interaction credits. 3Receipts enable the functionality of the Signals and 3.NFT systems.
Default & Programmable Logic
By default, a CDP operates in a "self-compound" mode. The original deposit (Parent Balance) is fixed. All protocol-generated interactions are automatically directed to create dynamic Child Balances within the same pool.
The system's logic can be programmed. Using the Signals mechanism, a participant can redirect interaction credits from one CDP to another, building Child Balances across different assets according to automated rules.
Protocol Utility
This system is also used by the protocol itself. Assets acquired by the protocol can be deposited into these pools. The protocol can then use Signals and 3.NFTs to manage its internal asset interactions according to its programmed logic.
The Deposit Pools are foundational modules for automated asset interaction within the ecosystem.
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