The Guild

3.1. The Guild: Currency Issuance & Management

The Guild protocol is responsible for the creation, distribution, and fundamental stability mechanisms of the ecosystem's native currency, GUILD.

3.1.1. GUILD Token

GUILD is a standard ERC-20 token representing the protocol's stable currency unit. Its stability is not maintained via algorithmic rebasing, but through the dual-engine convertibility mechanism detailed in Section 4.1. The total supply is elastic, expanding via the mint() function and contracting via the settlement process.

3.1.2. GuildSwap FARM: Primary Issuance & Value Acquisition

GuildSwap FARM is the protocol's primary value acquisition engine. It allows users to sell approved, yield-bearing derivative assets (e.g., sdCRV, cvxCRV) to the protocol in exchange for newly minted GUILD and 3Fi tokens, based on the value of the derivative's underlying claim.

• Approved Assets: A list maintained by governance, targeting assets that are (a) yield-generating and (b) typically trade at a discount to their redeemable underlying value (e.g., sdCRV vs. CRV).

• Minting Function: mint(derivativeAsset, amountIn) → (amountGUILD, amount3Fi)

• Pricing Model: The minted amounts are calculated based on the oracle price of the derivative's underlying asset, applying an implicit discount by ignoring the derivative's market premium/discount. Let:

  • exchangeRate = The rate at which 1 derivative token can be redeemed for its underlying (e.g., 1 sdCRV = 1 CRV).

  • oraclePriceUnderlying = The trusted USD price of the underlying asset (e.g., CRV/USD).

  The output is calculated as:

  text

  underlyingValue = amountIn * exchangeRate * oraclePriceUnderlying
  amountGUILD = underlyingValue          // 1 GUILD per 1 USD of underlying value
  amount3Fi = get3FiAllocation(underlyingValue)

  • 3Fi Allocation Function: The get3FiAllocation() function uses a 3Fi Distribution Curve to determine the amount of 3Fi minted per unit of GUILD. This curve is defined such that:

    • At totalGUILDIssued = 0, the 3Fi allocation rate is at its maximum.

    • At totalGUILDIssued = 3.3B (10% of final target), 50% of the total 3Fi supply has been allocated.

    • At totalGUILDIssued = 33B (100% of final target), 100% of the total 3Fi supply has been allocated. This creates a decaying allocation rate, incentivizing early participation in value acquisition.

• Effect: The protocol acquires discounted, productive assets, increasing its Protocol Held Assets (PHA). The user receives GUILD and 3Fi, incentivising the sale of discounted assets to the protocol and aligning them with the ecosystem.

3.1.3. 3Bonds: The Liquidity & Creditor System

3Bonds are ERC-721 (NFT) tokens representing locked capital and a creditor position in the protocol. The system employs a two-stage bond model with a dynamic rebate system to manage liquidity acquisition and align long-term incentives.

• Bond Purchase Mechanics: The function createAdolescentBond() accepts a fixed price of 10,000 crvUSD.

  1. Settlement Allocation (1%): 100 crvUSD is sent to the Settlement Contract, swapped for GUILD (minting if necessary), and the GUILD is sent to the Protocol Held Assets (PHA).

  2. Rebate Application: A rebate percentage, determined by the Bond Rebate Curve (BRC) based on the purchaser's existing bond count, is applied. This rebate amount is deducted and sent to a Rebate Engine for linear distribution back to the purchaser over 12 months. The rebate range is 0% to 33%.

  3. Arbitrage Funding: The remaining crvUSD (10,000 - 100 - rebate) is sent to the Arb. Master Node to fund GuildSwap Arbitrage activities.

• Adolescent 3Bonds:

  • State: An ERC-721 NFT representing a bond undergoing its 12-month vesting period.

  • Claim: It confers a future claim on 10,000 GUILD, realized only upon conversion to an Aged Bond. No GUILD is minted at the time of an Adolescent Bond's creation.

• Aged 3Bonds:

  • Creation: Conversion of a fully-vested Adolescent Bond via ageBond(adolescentBondTokenId). This action mints 10,000 GUILD and allocates it to the future Single-Sided Lending Pool (SSLP).

  • Representation: Each Aged 3Bond NFT represents a claim on those 10,000 GUILD within the SSLP.

  • Rights: Holders are classified as Creditors. They are entitled to a share of protocol revenue distributed via the Creditors POD and benefit from the systemic governance bias wherein all unclaimed VW3 weight augments the Creditors POD's allocation.

• Secondary Bond Market (Future - Stage 4):

  • Access: Wallets holding a threshold quantity of bonds (e.g., 1,000), as defined by the Bond Rebate Curve (BRC), may act as primary resellers or market makers.

  • Mechanics: Qualified sellers can purchase bonds at the maximum rebate and list them for resale. Sellers earn a fee in crvUSD upon the secondary sale and an allocation of 3Fi upon the buyer's subsequent conversion of the Adolescent Bond to an Aged Bond.

3.1.4. Startup Tokens (PRIME, ALPHA)

These are limited-edition ERC-20 tokens sold during the Genesis Capital Formation Event, representing the final opportunity to acquire a foundational position at a significant discount.

• Function: Each PRIME or ALPHA token is convertible 1:1 into an Aged 3Bond upon the deployment of the Bond Market (Stage 3), bypassing the Adolescent Bond vesting period and including a substantial 3Fi token allocation.

• Capital Deployment & Bootstrapping: 100% of the raised capital (in DAI) is managed by a dedicated, transparent multi-signature wallet. This capital is used to purchase the target derivative assets (e.g., sdCRV) on the open market. These assets are then immediately sold to the protocol via the GuildSwap FARM mechanism.

• Strategic Outcome: This process simultaneously:

  1. Bootstraps the protocol's treasury (PHA) with a foundational layer of yield-generating assets.

  2. Provides the project's development and creative teams with the GUILD and 3Fi tokens received from the FARM mint, funding initial operations and aligning their incentives with the ecosystem's long-term success.