3Bonds
The Creditor Instrument
Introduction:
A 3Bond is a non-fungible token (NFT) that represents a formal creditor position within the 3 ecosystem. Each bond is a unique financial primitive that encapsulates a claim on the protocol's currency and a right to its future cash flows.
Core Definition: What You Own
Holding a 3Bond means you own a debt instrument issued by the protocol. Specifically, each bond is perpetually backed by 10,000 GUILD locked in the Single-Sided Lending Pool and entitles the holder to a pro-rata share of the surplus revenue distributed as ETH.
The Two States of a 3Bond
The 3Bond exists in one of two states, defining its economic activity:
Adolescent 3Bond:
Activation Trigger: Purchased directly with crvUSD.
Economic Rights: Earns a crvUSD rebate stream for 12 months. Does not yet activate the underlying GUILD claim or earn ETH.
Purpose: A capital-raising tool for the protocol that offers a discounted entry price via rebates.
Aged 3Bond:
Activation Trigger: Converted from an Adolescent Bond (post-rebate) or minted directly via GUILD/Startup Tokens.
Economic Rights: Active creditor rights. Holders can initiate a 12-month vesting stream to claim the 10,000 GUILD and immediately begin earning a share of the protocol's ETH surplus distributions.
Purpose: The fully-activated state representing a mature creditor position.
Mechanical Purpose in the Ecosystem
3Bonds are a core component of the protocol's monetary architecture. They serve a dual purpose:
Capital Locking: They programmatically remove GUILD from circulating supply by locking it in the SSLP, contributing to long-term stability.
Value Distribution: They create a clean mechanism to distribute the system's success back to its long-term supporters, aligning incentives between users and the protocol's health.
A key feature protecting creditors is the protocol's automatic alignment in their favour. The governance system is designed so that unclaimed voting power (VW3) is used to boost the share of surplus revenue directed to the Creditors POD. This ensures that the protocol's financial backers are prioritised, especially during bootstrap phases or periods of low governance participation.
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