Standard

A modernised approach to old-school compounding.

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

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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), 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 signals.

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

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