Looped

Rotational position building with optional boosts for each CDP.


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.


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 signals.

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



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