Signals
'A reward-flow management system.'
Purpose.
To give depositors optionality and flexibility without moving their principal positions.
Function.
Signals are a 'set-and-forget' system that inform 3 how emissions are to be used: Compounded or Liquidated.
With 'Self-Compound' set as default, changing this default is simple and may be updated at any time by selecting an alternative Compound Deposit Pool (CDP), and successfully executing the prompted transaction to update the compound path state.
Compound path states:
'Self-Compounding' indicates: strategy receive rewards of a CDP are being used to purchase more of the same deposited asset, then deposited to grow the positions working asset base.
'Boosting' indicates: strategy received rewards of a CDP are being directed to another targeted CDP. (Meaning, CDP 1 strategy received rewards are instead used to purchase CDP 2 deposit assets).
Flexibility in directing emissions between CDPs opens up new strategic possibilities and means decisions to pivot revenue allocations can occur in a single transaction.
Strategy.
Here are five (5) examples of compound strategies one may utilise:
Standard compounding. Where emissions received by a CDP are consolidated into the pools native token and redeposited.
Concentrated compounding. Where emissions from one or more CDPs are used to boost the native balance of another CDP.
Hyper compounding. Where emissions from one or more CDPs and one or more LDPs are used to boost the native balance of another CDP.
Compound loops. Where emissions from a CDP is used to boost the native balance of another CDP and visa versa.
Boosted loops. Where emissions from one or more LDPs are used to boost a Looped CDP setup.
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