The architecture of 3 is the product of rigorous research and a coherent philosophical vision. These publications form our foundational writings, from the core technical blueprint to explorations of the future these systems enable. These articles represent the principle that robust code must be built upon robust thought.
3 FinanceThe captured Ledger & the static Vault. (2/4)
Why the digital age possesses revolutionary stores of value, but still lacks a true currency for exit.
3 FinanceDeFi’s Little Secret: The Blueprint for a Sovereign Currency.
Foundational Blueprints - 1/4
3 FinanceThe Scaling Engine. (2/3)
How Autonomous Agents Amplify a Sovereign Economy.
Subscribe to 3 Finance
Share Dialog
<100 subscribers
Welcome to the 3 Workshop. This series is your practical guide to engaging with the protocol, one clear step at a time. We begin with the foundation: earning yield on your assets.
Imagine putting your cryptocurrency to work in a digital savings account that manages itself. That’s the core idea behind 3’s Deposit Pools. They allow you to deposit certain yield-generating tokens and earn more of those tokens over time, automatically.
3 offers two main types of deposit pools, but they share a simple goal:
to grow your deposit.
CDPs (Compound Deposit Pools): These are the workhorses. When you deposit a token (like sdCRV, a yield-bearing version of CRV) into a CDP, the rewards it earns are automatically reinvested (compounded) back into the same pool. Your balance grows smoothly over time.
LDPs (Liquid Deposit Pools): These pools are designed to support CDPs. They take their earned rewards and direct them to boost the balance of a chosen CDP. (We’ll focus on CDPs for this first guide, as they are the primary starting point).
Think of a CDP as a high-quality, automated farm for a specific crypto asset. The strategies powering these pools are not experiments; they have been operating successfully across DeFi for years.
Getting started is similar to using any DeFi platform:
Acquire a Supported Token: You’ll need a token that has an active CDP, such as sdCRV.
Connect & Navigate: Connect your wallet to https://beta.3.finance and find the relevant CDP.
Deposit: Approve the transaction and deposit your tokens. In return, you will receive 3Receipts (e.g. 3sdCRV).
This 3Receipt is your claim ticket. It proves your share of the pool and can be redeemed later for your original deposit plus all its accumulated earnings.
This is where 3’s system adds helpful clarity and efficiency. The moment you deposit, two separate balances are tracked:
Your Parent Balance: This is your principal. It consists of tokens you deposited and any earnings you’ve chosen to migrate into it. This balance is under your direct control.
Your Child Balance: This is your virtual earnings. Every time the pool’s rewards are compounded, the new tokens are accounted for here. To save gas, actual 3Receipt tokens aren’t minted for this balance until you decide to claim (send to wallet) or migrate (move into Parent Balance) it.
Why split them? For clarity, control, and efficiency.
You decide when to realise earnings (claim or migrate).
Your principal (Parent) and profits (Child) are clearly separated, which can be helpful for tracking.
The system avoids unnecessary transaction costs by keeping Child Balances virtual until you act.
When you first deposit into a CDP, it is set to a default signal: SELF_COMPOUND. This means the system is on autopilot. All rewards generated by your deposit are automatically used to buy more of the underlying token and are added to your virtual Child Balance. You don’t need to do anything. Your position just grows.
When you’re ready to take your tokens out, you have a clear path:
Settle Your Earnings:
If you have a Child Balance, decide: Migrate it (to add earnings to your principal) or Claim it (to take earnings separately to your wallet).
Initiate Withdrawal:
Navigate to withdraw against your Parent Balance.
The Strategic Choice:
On the withdrawal screen, you will be presented with a powerful option:
Standard Withdrawal: Receive your underlying tokens (e.g. sdCRV) back into your wallet. This is the default.
Convert via GuildSwap Farm (GSF): Instead of taking the tokens, you can sell them directly to the protocol in the same transaction. You will receive GUILD (pegged 1:1 to the USD value of the token’s underlying asset) and 3Fi (the protocol’s governance token) in return.
(This is the same mechanism as the standalone GuildSwap Farm (see: S1.4), offered at the moment of withdrawal for your convenience. It’s often the most capital-efficient path if you wish to enter the broader 3 economy).
Complete the Action:
Confirm the transaction. You will either receive your original tokens or GUILD & 3Fi directly into your wallet.
Remember:
To withdraw everything, you must first migrate or claim your Child Balance.
Your first interaction with 3 is simple: deposit, hold, and let your balance grow. You’ve now taken the initial step from being a user of crypto to being a participant in a sovereign economic system. You own a productive asset that works for you around the clock.
In the next guide, we’ll explore how to actively direct those earnings using Signals (changing where your yield gets sent).
Next in the 3 Workshop: Directing Your Yield with Signals
This documentation is governed by the sovereign doctrine of The Prophet-Engineer’s Codex (v5).
Nature of Content: This is a technical and doctrinal guide. It is not financial advice.
System Description: Protocol 3 is an autonomous software system. GUILD is its sovereign accounting unit. 3Receipts are protocol-native proof-of-position tokens.
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.
Liability: There is no issuing entity. Participants engage directly with immutable code and assume all associated risks.
Full Disclaimer: The complete legal and risk framework is detailed in the Protocol Disclaimer.
By proceeding, you acknowledge this framework and assume all risks described therein.
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) | Twitter (Lead)
Engage with the protocol: https://beta.3.finance
