Signals
Programmable Reward Flows
Core Function
Signals is the protocol's mechanism for translating user intent into automated financial strategy. It acts as the intelligent routing layer between Deposit Pools and their yield-generating strategies, allowing you to programmatically direct your reward flows without manual intervention. This turns static yield farming into dynamic, personalised portfolio management.
How It Works: Paths and Balances
The system operates on two fundamental concepts that give you precise control:
Compound Paths: A directive to reinvest rewards into a specific asset. When you set a Signal to a Compound Deposit Pool (CDP) (be it the same pool or a different one), rewards are automatically swapped and deposited into that pool. This is the engine for automated growth and diversification.
Liquidation Paths: A directive to accumulate rewards for future conversion into a stable-coin (crvUSD). This path is activated automatically when 3Receipts are composed into 3NFTs, designating those rewards for cash flow. The actual conversion and payout are triggered by a user's claim or a liquidator's action, leveraging the protocol's shared efficiency.
Parent and Child Balances: The Architecture of Growth
To provide ultimate clarity and control, the system meticulously separates principal from earnings:
Parent Balance: Your immutable principal. This balance represents your original, user-deposited assets and can only be changed by your direct action (depositing more, withdrawing, or migrating a Child balance). It is your anchor.
Child Balance: Your dynamic, system-generated earnings. This balance represents all rewards that have been automatically directed to this pool via Compound Paths. It is the visual representation of your compounding, diversified growth, separate from your principal.
The Outcome: Strategic Autopilot
By setting Signals, you move from passive holding to active, automated strategy execution. You can design a system where:
Rewards from Asset A automatically diversify your position in Asset B.
Your core principal (Parent Balances) remains protected and easily trackable.
Your compounded earnings (Child Balances) grow across multiple assets, reflecting your unique risk and growth preferences.
Signals empowers you to build a self-executing financial ecosystem that works for you, embodying the principle of composability that lies at the heart of the 3 protocol.
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