Pledge
Settlement Module
Module Function
The Settlement Pledge is a programmed module that facilitates an exchange of GUILD for crvUSD. It provides a specific operational parameter within the 3 ecosystem.
How the Module Operates
The module executes according to predefined, on-chain logic.
The Exchange Function: The module allows a participant to stake GUILD, making it eligible for an exchange to crvUSD at a 1:1 rate, subject to the module's liquidity.
Pro-Rata, Parallel Processing: When crvUSD enters the module, it is allocated proportionally to all staked GUILD. For example, if incoming crvUSD covers 10% of the total staked GUILD, each participant becomes eligible to withdraw crvUSD equal to 10% of their staked amount.
Accrual and Fulfilment: Allocated crvUSD accrues within the module for each participant. A participant can withdraw their accrued crvUSD. The system tracks the remaining balance for each stake. Subsequent inflows are allocated based on these remaining balances.
Asset Backing: Operational Design
The module's operation is designed to be funded by specific protocol revenue streams, termed "Upstream Revenue." This includes assets generated directly from core treasury activities. This design is intended to maintain the module's operational integrity by linking it to primary protocol interactions.
Role in the System Architecture The Settlement Pledge module is a designed component of the protocol's operational framework.
Initial Parameter: In the protocol's early stages, this module establishes a key operational parameter for GUILD.
Long-Term Design: The protocol's design anticipates that the role of this module may evolve as other system components, like the Protocol-Controlled Reserve, grow according to their own logic.
The Settlement Pledge is a module that executes a specific exchange function according to its programmed rules and available liquidity.
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