Deployment 1.0
Project state at time of audit. (August to October 2024)
Last updated
Project state at time of audit. (August to October 2024)
Last updated
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Thesis extract:
Sovereign currencies today are backed by the future taxation of their respective populations. What would the world look like if a Sovereign currency were backed instead by the productivity of a protocol?
3.finance is a decentralised finance project building three distinct, yet connected protocols focused on debt creation, asset growth, and debt settlement, aiming to establish a sovereign, decentralised currency as DeFi's reserve.
The project referred to as 3.finance is a project of 3 bodies of work. Each a protocol unto itself:
Protocol 1 is The Guild - focused on debt services and management tools.
Protocol 2 is 3 Finance - focused on asset compound growth and cashflow management tools.
Protocol 3 is The Reserve - focused on debt settlements and convertibility.
The work reviewed by this audit does not cover the full scope of the 3.finance project. Only the projects MVP. This includes objectives from two perspectives:
The two sections below describes key journeys for each of the two aforementioned perspectives.
3 Finance (protocol 2), is to become a user within its own ecosystem. It is to be both active participant and willing counterpart depending on the activity a user engages in.
The eventual goal of this approach is to shift the burden of debt from taxpayer to protocol. However, this position is not to be confused with a charity or of a philanthropic ideology, it is not. The intent is not for 3 Finance to become a savour but a stabiliser: the settler of last resort.
'Settler of last resort', opposed to: 'buyer of last resort'.
MVP objectives:
Contracts:
guildSwap,
guild.
Contract:
HoldingContract
(Swap, Send, On Reward) 3 Finance is to be able to convert when necessary, the assets it acquires of a specific family. Eg. CRV into cvxCRV or sdCRV.
Contract:
swap.
Contracts:
cdpQuery,
cvxCRVgCDP,
cvxCRVsCDP,
stCVXCDP,
cvxCRV3s,
cvxCRV3g,
stCVX3.
Contracts:
cvxCRVgEngine,
cvxCRVsEngine,
stCVXEngine,
Contract:
SettlementContract.
In contrast to the protocol: 3 Finance acting from within its own ecosystem to achieve the vision and missions of the 3.finance project, users will only engage when & where they see benefit for themselves.
Therefore, the positioning of the same contracts have been crafted into a UI, user experience that promotes benefit from the users perspective. These benefits are:
Arbitrage of meta-tokens.
A new, innovative Compound engine and,
MVP objectives:
Contracts:
guildSwap,
guild,
3fi.
Contracts:
guildSwap,
guild,
SettlementContract.
Note. The above description of the arbitrage journey is simplified for MVP. A large part of the described journey will later be composed into a single transaction and/or bots introduced.
(Apply - Self compound - Default) As a user, I will be able to grow my portfolios asset base by deposit assets into compound deposit pools that implement tried and tested DeFi strategies to farm rewards or receive a yield. The rewards/yield received will be swapped for the same deposit token and added to my portfolio's deposits within the same CDP. And,
Contracts:
cdpQuery,
cvxCRVgCDP,
cvxCRVsCDP,
stCVXCDP,
cvxCRV3s,
cvxCRV3g,
stCVX3.
Contracts:
cvxCRVgEngine,
cvxCRVsEngine,
stCVXEngine,
Contract:
Prime
acting for its own benefit in its own ecosystem and,
acting for their own benefit within the 3.finance ecosystem.
(Acquire assets) 3 Finance is to be able to acquire targeted assets that it can put to work in a manner that is positive to itself and the DeFi space. (, , )
(Secure assets) 3 Finance is to be able to retrieve the acquired assets, such that they are under its control. NB. These assets are owned by 3Fi token holders. ()
(Compound balances) 3 Finance is to be able to deposit the acquired assets into a deposit pool for the purpose of farming rewards from external protocols and/or strategies for the purpose of compounding its own deposited asset balances. (, )
(Generate revenue) 3 Finance is to be able to manage its portfolio from a compound vs. cashflow perspective. The purpose being to give it the capability of weighting rewards received between those used to grow its asset base and those liquidated such that it may settle GUILD debt. (, , )
(Settle debts) 3 Finance is to be able to liquidate rewards earned into a settlement-asset (crvUSD), and to use this cashflow to settle GUILD debt. ()
Disposable cashflow using NFTs to expand the audience base beyond .
(1)
(2)
(3)
(Farm 3Fi tokens) As a user, I will be able to farm 3Fi tokens by swapping specific assets for GUILD tokens. In doing so, I will receive an allocation of 3Fi tokens where the amount received is based upon the 3Fi token distribution model. (, , )
(Perform arbitrage) As a user, I will be able to arbitrage the difference between meta-tokens and their underlying equivalents by swapping specific assets for GUILD tokens. I will then stake these GUILD tokens in the settlement contract. When the settlement contract has sufficient settlement-assets (crvUSD), I will claim the equivalent amount of settlement-assets as I have staked GUILD (1:1 ratio). In doing so, my staked GUILD will be burned. (, , )
(Apply - Compound strategy) As a user, I will be able to direct the rewards/yield received from one CDP (A), to another CDP (B), such that the rewards/yield received by (A) is swapped into those assets of (B) and thereby building or boosting that CDPs balance. (, , )
(Create disposable cashflow) As a user, I will be able to use my deposit receipts to produce turn-key cashflow assets, 3.NFTs. This process will allow the rewards/yield earned by the NFTs to compound until called for liquidation. When called, only the compounding rewards/yield received will be liquidated and made available as disposable cashflow. The original deposits will remain intact and whole. (, )
In an effort to either move beyond self-funding or provide a more transparent means to documenting self-financed capital received by the 3.finance project, the PRIME token was created. Full details can be found .
