Arb. Master Node

The Capital Allocator

Core Function

The Arb Master Node is the protocol's automated capital allocation engine for value acquisition. It receives crvUSD from 3Bond sales and strategically deploys it across a set of specialized Arbitrage Engines to systematically acquire discounted yield-bearing assets for the treasury.

How It Works: Programmatic Treasury Growth

The node operates on a disciplined, rule-based strategy to grow the protocol's asset base.

1. Capital Intake: The node is funded by a portion of the crvUSD revenue from 3Bond purchases. This capital is vested into the node linearly over a 30-90 day period to ensure steady, dollar-cost-averaged market entry.

2. VW3-Governed Distribution: The vested crvUSD is distributed to individual Arbitrage Engines based on the persistent stake of VW3 tokens within each engine. This allows the community to strategically direct capital to the most promising or undervalued arbitrage opportunities.

3. Automated Execution & Safeguard: Each Arb Engine uses its allocated crvUSD to execute its specific market-making strategy. Every arbitrage trade is protected by the dynamic Arb Fee (payable in GUILD), which acts as a circuit breaker by making unviable, deeply off-peg trades economically prohibitive.

Outcome: Strategic, Community-Directed Expansion

The Arb Master Node transforms bond sales into strategic asset accumulation. It ensures the protocol's treasury grows not randomly, but through a community-directed, disciplined, and self-protecting investment process that capitalises on market inefficiencies.