Synopsis
Overview.
3 is a monetary policy experiment leveraging the natural characteristics of decentralised finance to secure and exercise its values, while implementing its objectives, in the effort to achieve its goals.
3's policy borrows learnings from three prior monetary policy experiments: Debt, Asset and Community backed models.
'We do not need to reinvent the wheel, we just need to ensure it's soundly built.'
Summarised, 3's principle value, objective and goal respectfully, are as follows:
The right to transact (Inherited by building on DeFi and adhering to DeFi best practices).
'DeFi is the only financial environment that defends the right to transact by default.'
Hardcode a sound monetary foundation from which to establish a DeFi sovereign currency. (In code we trust).
Creditors receive first right of settlement. (No more 'can' kicking).
Excess revenue is converted to the host chain's native asset and accumulated as reserves to meet a protocol managed reserve requirement. (Organically grown asset backing).
Surplus revenue is collected and shared between Purpose Orientated Distributors (PODs). (Community driven revenue sharing).
Realise DeFi's Autonomous Reserve through the implementation of 3's DeFi Trident Architecture.
Composability.
Vertical composability: Instead of a singularly defined governance token (model) that overseas everything, 3's tokenomic architecture is rooted in User Sentiment Driven models. This translates into a layered governance structure, establishing a more natural hierarchy that I believe best aligns individual incentives with system security and longevity.
Lateral composability: Layered governance also means tokens native to 3 may be utilised in ways that can pivot system functionality to best align with the priorities of an individual user. (One clear example of this is: Deposit receipts)
Convertibility.
3 builds liquidity from the ground up by securing excess revenue, unencumbered from external liabilities, enabling deployment and growth opportunities to manifest for both the on-chain and real-world communities.
Until 3's liquid reserves are sufficient to satisfy the communities reserve requirements (those beyond the protocols reserve requirements that encourage adoption), 3 has hardcoded a settlement pledge that entitles any creditor to seek settlement at a fixed rate of 1:1 with the systems designated stable. (Currently crvUSD).
Sustainability.
Keeping to DeFi best practices, 3 builds longevity by distributing all surplus revenue back to its community through a Distribution Engine that manages the ecosystems list of PODs. Eventually, POD creation will be open to everyone, giving rise to new market integrations for 3 and it's community.
Market.
Presently, 3 supports derivative assets directly related to Curve.finance's ecosystem.
'It (Curve), being one of the few true cornerstones of DeFi, it felt the only place to begin.'
The size of 3's market therefore is directly proportional to the number of CRV tokens locked within the following protocols:
Stake DAO - https://www.stakedao.org/,
Yearn - https://yearn.fi/ and
Convex - https://www.convexfinance.com/.
'...their mandate, is now our own...'
'As 3 matures, new protocols will be researched for their compatibility and integration potential.'
Audience.
3 focuses on three groups as identified from our initial research phase:
Natives (Stage 2),
Culturalists (Stage 4),
Normies (Stage 5),
Our rollout plans incorporate each group at different stages of development and project maturity.
For more details, please reach out to our team by visiting the projects discord.
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