How It Works
3.Finance operates as a closed-loop economic engine. This means the system generates its own revenue, reinvests it, grows stronger, and repeats—like a perpetual motion machine for money.
The Flywheel Effect
Treasury Holds Assets
The protocol owns yield-generating assets like staked ETH and LP tokens.
Assets Generate Yield
These assets earn returns—staking rewards, trading fees, arbitrage profits.
Distribution Engine
Revenue is automatically split and sent to different purposes (PODs).
Reinvestment
Part of the revenue goes back to grow the treasury even larger.
And the cycle repeats, growing stronger each time
The Distribution Engine
Think of this as the heart of the system—it pumps value to where it's needed most.
Developers POD
Funds ongoing development, security audits, and improvements to the protocol.
Creditors POD
Rewards early supporters who helped bootstrap the system with their capital.
Reserve Booster POD
Strengthens the protocol's reserves, making the system more resilient.
Liquidity Booster POD
Supports trading liquidity so GUILD can be easily bought and sold.
Creatives POD
Supports community initiatives, education, and outreach efforts.
Settlement Pledge
Ensures there's always liquidity for the 1:1 GUILD-to-crvUSD exchange.
Where Does the Money Come From?
The protocol generates revenue through multiple streams, making it resilient even if one source underperforms.
Arbitrage Master Node
An automated system that finds price differences across markets and profits from them. For example, if an asset is cheaper on one exchange than another, the AMN buys low and sells high—automatically.
Think of it like a robot trader that never sleeps and always finds deals.
Treasury Yield
The treasury holds productive assets that earn returns. Staked ETH earns staking rewards. Liquidity positions earn trading fees. These yields compound over time.
Like a savings account that earns interest, but with much better rates.
Credit Market (Future)
A planned feature where the protocol can issue GUILD-denominated bonds. Borrowers pay interest, which becomes another revenue stream.
Like a bank that lends money and earns interest on loans.
The Two Phases
Like a rocket that needs boosters to reach orbit, 3.Finance has a bootstrap phase before achieving full independence.
Bootstrap Phase
GUILD uses crvUSD as "scaffolding"—a trusted stablecoin that provides the initial stability guarantee. The Settlement Pledge ensures 1:1 exchangeability.
Self-Sovereignty
As the protocol grows its own reserves (primarily ETH), GUILD's value becomes backed by assets the protocol fully controls—no longer dependent on external stablecoins.
The Key Insight
Most DeFi protocols need constant external funding to survive. 3.Finance is designed to fund itself. Every dollar of revenue makes the system stronger, which generates more revenue, which makes it even stronger. This is the flywheel effect in action.