Genesis Activation
Activating the Protocol Engine
This section details the activation sequence: the mechanism through which the protocol transitions from schematic to operational state.
Its function is to convert external capital commitment into the initial kinetic energy for the protocol's sustainability flywheel. The core instruments of this phase are 3Pacts, PRIME3, and ALPHA.
Important Notice: This documentation describes the designed technical function of a specific software protocol. It is for informational purposes only and outlines the development team's planned approach to initialising the system's internal economic modules. It is not an offer, solicitation, or recommendation to acquire any asset, token, or instrument, nor does it constitute financial, legal, or investment advice.
The Core Instrument: The 3Pact (ERC-721)
A 3Pact is a non-fungible token (NFT) representing a programmatic capital commitment with defined state transitions and future system entitlements.
State Definitions
Adolescent 3Pact: Acquired through a commitment of 10,000 crvUSD. Capital from Adolescent 3Pacts is allocated to the Arbitrage Master Node module to initiate the protocol's value-acquisition functions. This state may be programmed to receive variable rebates but confers no direct claim on GUILD units.
Aged 3Pact: The matured state, converted from an Adolescent 3Pact upon the satisfaction of specific, code-defined conditions (e.g. the conclusion of a rebate period). Each Aged 3Pact represents a future claim on 10,000 GUILD units within a subsequent system module, the Single-Sided Lending Pool (SSLP).
Holder Status & Entitlements
Holders of Aged 3Pacts are classified as Protocol Creditors. This status confers the following entitlements, subject to the deployment and performance of the relevant system modules:
Primary Entitlement: A future claim on 10,000 GUILD via the SSLP module upon its deployment.
Protocol Performance Distribution: Eligibility to receive distributions of ETH from the dedicated Creditors POD, contingent upon the generation of surplus by the protocol's core economic engines.
Future System Access: Following the deployment of the Credit Market Layer (Phase 4), Creditors are designed to have exclusive eligibility to accrue yield generated by the protocol's own Single-Sided Lending Pool (SSLP). This is intended to constitute a secondary revenue stream distinct from primary treasury yield allocations.
The protocol treasury itself is programmed to accumulate GUILD through mechanisms such as Arbitrage Fees. These GUILD units can be utilised by the treasury to mint 3Pacts, making the protocol a self-reinforcing participant in its capital structure.
Genesis Instruments: PRIME3 & ALPHA
PRIME3 and ALPHA are finite instruments created for the foundational build phase. They represent the final instruments of this design before the protocol is engineered to achieve its targeted self-sustaining revenue state.
Instrument Specifications
Final Supply: 1,000 PRIME3 and 800 ALPHA tokens constitute the total, immutable supply.
Function: Each whole PRIME3 or ALPHA token is convertible on a 1:1 basis into an Aged 3Pact, bypassing the Adolescent state. Holders thus immediately attain Protocol Creditor status.
Capital Deployment Pathway
Capital associated with these instruments is directed by a dedicated multi-signature wallet to execute a primary on-chain operation:
Acquisition of specified yield-generating derivative assets.
Sale of these assets to the protocol via the GuildSwap Farm (GSF) module. This action is designed to directly contribute to the Protocol-Held Assets (PHA), the foundational reserve that generates the system's revenue stream. Associated transaction fees and operational costs are incurred in this process.
Conversion Mechanics
Conversion Pathways
Whole Token Conversion (≥ 1.0 token): Executes a 1:1 conversion to an Aged 3Pact, granting full Protocol Creditor status and associated future entitlements.
Fractional Token Conversion (< 1.0 token, minimum 0.1): Executes a pro-rata conversion to an immediate allocation of GUILD and 3Fi tokens. For example, converting 0.5 PRIME3 yields approximately 5,000 GUILD and 3,500 3Fi. This pathway provides immediate liquidity but forfeits the future Creditor entitlements linked to an Aged 3Pact.
Note: Users who convert fractionally may later accumulate 10,000 GUILD to mint an Aged 3Pact directly, regaining access to Creditor entitlements.
System Design Logic: Structural Alignment
The design parameters of the PRIME3/ALPHA instruments are engineered to create two distinct structural positions:
Discounted Access to the Accounting Unit (GUILD): The acquisition cost of PRIME3/ALPHA is engineered to be significantly lower than the future claim value of 10,000 GUILD, establishing a structural cost differential.
Accelerated Governance Allocation (3Fi): The simultaneous allocation of 3Fi tokens is calculated as if the holder had committed the full future value of the GUILD claim. This results in a proportionally larger allocation of governance power per unit of capital committed.
Strategic Objective: Achieving Protocol Sustainability
The capital formation target for this phase is to fund the PHA to a "near-sustainable revenue state." This is defined as the point where yield generated by the PHA is programmed to cover core protocol development costs with a contingency buffer.
Achieving this state is a critical milestone. It is engineered to provide the multi-year operational runway required to construct subsequent phases (Credit Market Layer, Sovereign Ecosystem) without further external capital dependencies. Future expansions of the GUILD and 3Fi supplies are governed by hard-coded protocol mechanisms (PSUs) and distribution rules.
Post-Vesting Utility & Pathways
Upon vesting, GUILD units are programmed to have immediate utility within the ecosystem, including but not limited to liquidity provision within protocol-managed pools. A portion of initial liquidity is designated to fund continued protocol development.
Users are provided with a defined exit mechanism: the Settlement Pledge, which is engineered to facilitate the redemption of GUILD for crvUSD at a 1:1 ratio, subject to the rules and availability of that module.
Build Phase & Access
The beta interface at https://beta.3.finance is the primary operational environment for this genesis build phase. For inquiries regarding this genesis build phase, contact: [email protected]
Protocol Disclaimer & Warning
This document is a technical specification. It describes the planned functions and design parameters of a software protocol. All statements regarding mechanisms, entitlements, yields, states, or future modules are descriptions of code intent and are subject to change, failure, or obsolescence.
This is not financial, legal, or investment advice. The assets, tokens, and instruments described (GUILD, 3Fi, 3Pacts, PRIME3, ALPHA) carry extreme risk, including the potential for total loss. Their acquisition or use may be restricted. Past performance of any strategy or module is not indicative of future results.
You are solely responsible for your own research and due diligence. You must not rely on this document for any decision. You should consult with independent professional advisors.
The full and binding legal disclaimers, terms, and risk disclosures governing the protocol and all related materials are contained in the official disclaimer suite. You must read and understand these before any interaction.
🔗 Read the complete disclaimer suite here: https://docs.3.finance/disclaimer
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