# Converting yield to cashflow with 3NFTs. (3/7) *Series 1.* By [3 Finance](https://paragraph.com/@3finance) · 2025-12-28 yield-conversion, nft-utility, cashflow-generation, defi, protocol-economics, sovereign-money, decentralised-finance --- In the first two guides, you learned how to deposit assets to earn yield and how to program where that yield goes. Now, we introduce a tool that lets you transform that growing yield into a steady income stream: 3NFTs. An NFT (Non-Fungible Token) is typically a unique digital collectible. In 3, an 3NFT is something more practical: it’s a basket of your locked deposit receipts that automatically converts its share of pool rewards into stable-coins. It’s a machine for turning yield into cashflow, and it remains a transferable asset in your wallet. **From growing balance to reliable income** ------------------------------------------- Recall that when you deposit into a CDP, you receive 3Receipts (e.g. `3sdCRV`) representing your share. You can hold these "loose" in your wallet to keep compounding (as covered in guides 1 and 2). Creating a 3NFT means taking some of those receipts and _locking them in_ to a special smart contract called an NFT Engine. Once locked in, those receipts continue to contribute to your regular Child balance until called upon by you or a system liquidator during the protocol’s regular harvest cycles. In these events, the yield being generate by the assets tied to your 3NFTs is automatically sold for a stable-coin (crvUSD). ### **In short:** Loose 3Receipts → Yield compounds in the same asset. 3NFTs (Locked-In Receipts) → Yield is liquidated into stable-coin cashflow. **Understanding 3NFT collections & levels** ------------------------------------------- Each CDP (e.g. the sdCRV pool, the yCRV pool) has its own set of 3NFTs, called a Collection. The requirements to mint an NFT are based on the _underlying asset_ of that CDP (e.g. CRV for a CRV-derivative pool). Each collection has 7 levels. * Level 7 is the largest, requiring the most 3Receipts. It always represents 1% of the total max supply of the underlying asset. For example: * CRV max supply is ~3.3 billion. One Level 7 3NFT in a _CRV-based_ CDP (like sdCRV) requires 33 million corresponding receipts. * CVX max supply is 100 million. One Level 7 3NFT in a _CVX-based_ CDP requires 1 million corresponding receipts. * Each level below is one-tenth the size of the level above. Level 6 is 1/10th of Level 7, Level 5 is 1/10th of Level 6, and so on, down to Level 1. This structure allows for flexibility. You can lock in a small portion (Level 1) or a significant stake (Level 7), depending on your goals and the receipts you hold from that specific CDP. **How to create a 3NFT** ------------------------ The process is integrated directly into the CDP interface: 1. **Select Your CDP:** In `beta.3.finance`, select the CDP where you hold a deposit and 3Receipts. This opens the CDP's Action Panel. 2. **Navigate to ‘Actions’:** The default view is ‘Signals’. Switch to the ‘Actions’. 3. **Choose ‘Mint’:** Selecting ‘Mint’ opens the 3NFT creation interface. 4. **Define Your NFT:** The system will read your wallet balance and show you the available levels you can mint. Select your desired Level and the Quantity of NFTs you wish to create. 5. **Lock & Mint:** Approve the transaction. This will move the required number of your 3Receipts into the NFT Engine and mint the corresponding 3NFT(s) directly to your wallet. **Claiming your Cashflow** -------------------------- The crvUSD generated by your 3NFTs doesn’t appear in the NFT itself. During harvests, the protocol acquires crvUSD from the market and allocates it to you. * To view and claim your accumulated crvUSD, navigate to the ‘Grove’ section of the interface. * Under your deposits, you will find a virtual crvUSD balance representing the sum of cashflow from all your 3NFTs. * You can claim this balance to your external wallet at any time. **The strategic power of 3NFTs** -------------------------------- Using 3NFTs allows you to design a balanced, personalised financial strategy within 3: * **Split Your Portfolio:** You can keep some receipts “loose” to compound and grow (aggressive), while locking in others as 3NFTs to generate dependable income (conservative). You control the ratio. * **Plan for Expenses:** Use 3NFT-generated crvUSD to cover regular expenses without needing to sell your principal deposits. * **A Transferable Asset:** Your 3NFT is yours to hold, transfer, or eventually trade on a dedicated marketplace (a future stage), adding liquidity to your strategy. **Key points to remember** -------------------------- * **Burn to Reclaim:** You can always burn your 3NFT to unlock the original 3Receipts, returning them to your wallet as “loose” receipts. * **It’s a Composable Building Block:** 3NFTs are a core component for more advanced participation, including eligibility for future roles like Legends. **Your evolving strategy** -------------------------- With deposits, signals, and now 3NFTs, you have the basic toolkit to manage your assets within 3: grow, direct, and harvest. You decide the mix that’s right for you: 100% compounding, 100% cashflow, or any balance in between. In the next guide, we’ll look at how you can interact directly with the protocol’s treasury by selling it assets through GuildSwap Arbitrage (GSA). > _Next in the 3 Workshop:_ **_Selling Assets via GuildSwap Arbitrage (GSA)_** * * * ### **PROTOCOL LEGAL & CONCEPTUAL FRAMEWORK** This documentation is governed by the sovereign doctrine of The Prophet-Engineer’s Codex (v5). 1. Nature of Content: This is a technical and doctrinal guide. It is not financial advice. 2. System Description: Protocol 3 is an autonomous software system. GUILD is its sovereign accounting unit. 3Receipts are protocol-native proof-of-position tokens. 3. Disclaimers: All interactions are self-custodial and entail full smart contract and market risk. Tokens are non-sovereign metrics, not securities. Yield is a protocol-generated surplus, not a guaranteed return. 4. Liability: There is no issuing entity. Participants engage directly with immutable code and assume all associated risks. 5. Full Disclaimer: The complete legal and risk framework is detailed in the [Protocol Disclaimer](https://docs.3.finance/disclaimer). By proceeding, you acknowledge this framework and assume all risks described therein. * * * **Explore the Foundations** --------------------------- _This article is part of a series exploring the future enabled by sovereign digital infrastructure. The technical blueprint for these systems is being built now._ * Follow the build: [**Twitter (Protocol)**](https://x.com/3_finance_?s=21&t=AEUmkoZGISA0C50xKIx7MQ) | [**Twitter (Lead)**](https://x.com/gravity_on_eth?s=21&t=AEUmkoZGISA0C50xKIx7MQ) * Engage with the protocol: [**https://beta.3.finance**](https://beta.3.finance) * * * --- *Originally published on [3 Finance](https://paragraph.com/@3finance/converting-yield-to-cashflow-with-3nfts-37)*