GuildSwaps: Farm
Protocol Asset Exchange Module
Introduction:
GuildSwaps Farm is a core protocol module that facilitates a direct exchange of assets. It allows a participant to supply specific yield-generating derivative assets in return for the protocol's native units: GUILD and 3Fi.
This module provides a primary method for onboarding assets into the system's treasury.
Core Mechanism: The Exchange Formula
The module's operation follows a predefined, on-chain formula:
A participant supplies a whitelisted derivative asset (e.g. sdCRV).
The protocol's internal logic values it at the full price of the underlying asset (e.g. CRV).
The protocol mints and transfers 1 GUILD unit for every $1 of underlying value, plus a proportional amount of 3Fi tokens, to the participant.
Protocol Outcomes of an Exchange
Engaging with this module has the following mechanical results within the protocol:
Acquisition of Protocol Units:
The exchange mints GUILD units at a rate determined by the protocol's internal valuation logic, prior to any potential external market price discovery.
Governance Utility Acquisition:
The 3Fi tokens received are utility tokens that confer governance rights within the protocol. These rights can be used to participate in processes such as directing certain treasury flows. Staking 3Fi also enables the accrual of VW3, a non-transferable weight used in governance.
Path to Protocol Distributions:
GUILD units acquired can be used in other protocol modules, such as the GuildLocks interface. Using GUILD in these ways can alter a participant's alignment within the system, which may qualify them for future protocol-generated ETH distributions, subject to system performance.
System Function:
This module is designed to be a consistent on-ramp for assets, independent of other module activity, contributing to the protocol's treasury.
Module Comparison
This module is suited for participants oriented toward long-term interaction with the protocol's ecosystem. For participants seeking an immediate exchange for a stable-coin, the GuildSwaps: Arbitrage module may be an alternative, depending on real-time fee parameters and module liquidity.
The Exchange Formula
The minting logic is governed by transparent, on-chain rules:
GUILD received = Underlying asset value (in USD)3Fi received = GUILD Issued * r(T)
Where r(T) is the allocation rate at the time of transaction T. This rate is programmed to decrease marginally as the total supply of GUILD grows. The specific schedule is defined within the protocol's smart contracts.
This model establishes a predictable minting mechanism during the protocol's bootstrap phase.
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