Holding Contract

⚙️ Protocol Mechanics Disclaimer

Core Custody & Routing Module

Introduction

The Holding Contract is a core smart contract within the 3 ecosystem. It receives, holds, and programmatically routes assets according to the protocol's predefined logic.

The Asset Flow Logic

The contract operates on automated rules where incoming assets are directed along programmed paths.

Primary Asset Sources

Assets enter the contract through core protocol interactions:

• GuildSwaps Modules: Receipt of derivative assets from exchange modules.

• Protocol-Generated Assets: Assets accrued from the automated interactions of held assets.

• Fees: Specific fees from protocol module interactions.

A Note on the Harvester:

A 1% parameter is applied by a separate Harvester contract during certain operations. This allocation is not directed to the Holding Contract. It funds a dedicated multi-signature wallet responsible for managing the technical parameters of DeFi interactions. This design allows for operational adaptability without modifying the core Holding Contract logic.

Programmed Asset Routing

All assets are automatically routed to fuel specific protocol functions according to their programmed logic.

Source.	Asset in.	Destination.
GuildSwap FARM	sdCRV	CDP, routes through Stake DAO
GuildSwap ARBITRAGE	sdCRV	CDP, routes through Stake DAO
GuildSwap FARM	yCRV	CDP, routes through Yearn
GuildSwap ARBITRAGE	yCRV	CDP, routes through Yearn
GuildSwap FARM	cvxCRV	CDP, routes through Convex
GuildSwap ARBITRAGE	cvxCRV	CDP, routes through Convex
GuildSwap FARM	CRV	Converted to derivative
GuildSwap FARM	CVX	(Pending strategy upgrade)
GuildSwap FARM	SDT	Routed through 3's Stake DAO Master Node, deposited into Gauge.
Distributions: Legends	ETH	Distributed to 3Fi token holders
Distributions: Creditors	ETH	Distributed to 3Fi token holders
Arb.Fees	GUILD	Accumulated till balance permits minting of PACTs
Legend incubators	GUILD	Accumulated till balance permits minting of PACTs
SSLP Lending revenue	GUILD	Accumulated till balance permits minting of PACTs
SSLP Liquidations	GUILD	Accumulated till balance permits minting of PACTs
PHA's GUILD balance	PACTs	Accumulated till balance permits reserving a Legend
PHA's PACT balance	Legends	Guarantees 3's ecosystem
PHA, Composed 3NFTs	crvUSD	Settlement Contract (v2)
SSLP Liquidations	3NFTs	Added to existing 3NFT holdings
SSLP Liquidations	3Fi	Permanently staked to accumulate VW3 tokens
Staked 3Fi tokens	VW3	(Determined by staked 3Fi token holders based upon VW3 weight de)

Destinations stipulated above are for Grove held assets only. Please see the source specific to your enquiry to learn asset destinations based on each modules logic.

Until Governance handover (Stage 5), Grove accrued VW3 will be allocated to the Reserve Booster POD.

The 3Fi Token: Governance Utility

The Holding Contract's operations are a primary subject of governance decisions made by 3Fi token holders.

• Governance Subject: The parameters and outcomes of the Holding Contract's logic are a key focus of the protocol's governance.

• System Alignment: The distribution of any protocol-generated ETH to 3Fi stakers is programmed to occur only after other system parameters are satisfied, aligning governance participation with long-term system logic.

• Module Interaction: The primary method for 3Fi holders to interact with the outcomes of this module is through potential distributions of ETH, which are a function of the protocol's autonomous performance.

In essence, the Holding Contract is a core custody and routing module. Its operations are a foundational component of the protocol's automated architecture.

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