ELI5: What Is Trinity?

4 min readDec 16, 2020

Trinity combines three powerful token mechanisms for liquidity, yield and volume generation into a single token that acts as a liquidity connector for various DeFi projects.

This post will go over what each of these mechanisms does and how they fit into the greater Trinity ecosystem, as well as how TRI fits into the greater DeFi ecosystem.

How Does TRI Automatically Generate Liquidity?

Whenever someone sends a transaction using the TRI token, 2% of that transaction is sent to the token contract.

Over time, the stored TRI tokens accumulate until they reaches a threshold (currently 5,000 TRI).

Once this threshold is reached, half of the stored TRI is be market sold for ETH.

The ETH and TRI is then used to create a Univ2 LP token. The LP token is then stored inside of the contract where it is secure and can never be transferred out.

Over time, the liquidity stored inside of the contract grows bigger and bigger, which creates a price-floor for TRI.

Since this step is a high-gas transaction, whoever happens to initiates this transaction is automatically rewarded with 200 TRI.

How Does Trinity’s Liquidity Generation Mechanism Work With Partner Pools?

First, a partner market buys TRI tokens and creates a TRI-PARTNER pool with their token.

Then, that pool gets whitelisted. This means every transaction on the Trinity network will go towards building the liquidity of the TRI-PARTNER pool, rather than the TRI-ETH pool.

Doing so creates additional trading and arbitrage opportunities for that pair, which will create more trading volume on the TRI network.

Since only one pool can be whitelisted at a time, when the partnership period ends, Trinity will switch it’s target back to its own TRI-ETH pool.

With each partner pair that gets added, Trinity’s liquidity web grows bigger and bigger.

Why Would Other DeFi Projects Want To Create A Pool With Trinity?

Because in addition to the exposure they would get to the Trinity community, creating an official Trinity pairing means they get more liquidity in the TRI-PARTNER pool, from both the automated liquidity generation mechanism, as well as people providing liquidity themselves to earn additional rewards.

This is especially appealing to new projects who need more liquidity and exposure, as well as established projects that need more trading volume.

How Does Trinity’s Passive Yield Generation Mechanism Work?

In addition to a 2% fee that goes towards building liquidity, Trinity also has a 1% transactional fee that gets distributed to all Trinity holders. These tokens are transferred instantly, so there is no need for staking in a vault or pool which can sometimes be risky and costly.

The amount of tokens you get as rewards depends on your share of TRI holdings (the more TRI you hold, the more rewards you get).

How Does Trinity’s Liquidity Treasury Work?

The TRI Liquidity Treasury is a contract created at token deployment that holds 500,000 TRI tokens (5% of the starting supply).

These tokens collect passive yields (interest) just like any other wallet. These interest tokens are automatically sent to the whitelisted liquidity pool as an extra incentive for liquidity providers.

This means there are 3 incentives for you to provide liquidity to TRI-ETH or another whitelisted TRI pairing:

Passive yields from holding TRI
Liquidity treasure rewards
Standard Uniswap 0.3% fees

How Does Trinity’s Alchemize Feature Work?

The Alchemize feature can be called once an hour by anyone holding at least 1,000 TRI tokens.

When Alchemize is called…

The protocol automatically removes 2% of the liquidity locked inside the contract, which is broken down into ETH and TRI
The ETH is then used to market-buy TRI
95% of the TRI is then burned
5% of the remaining TRI is sent to the function caller as rewards since it’s a high-gas function

The goal of the Alchemize feature is to create buy pressure on the TRI-ETH pair.

Again, this creates additional trading opportunities since people can expect the price to go up at regular intervals, resulting in more transactions to generate yield.

Note: Alchemize only works on the TRI-ETH pool because that’s where most of the trading volume will happen.

What Is Trinity’s Roadmap?

A more detailed roadmap will be shared later this week, as our team is finalizing some announcements and partnerships.

The grand vision is to create as many TRI pairings as possible with multiple partners, which will increase network usage and generate more yield for all holders.

Simultaneously, we want to decentralize TRI’s governance to the community (TRI holders), so holders have the ultimate say on partnerships, tax rates, reward rates, and so on.

How Does Trinity Fit Into The Bigger Picture of DeFi?

The great DeFi boom of 2020 gave birth to many breakthrough and novel protocols. A lot of innovative projects are no longer around because they didn’t have a practical use case, despite having innovative tech.

Right now, it’s obvious that the projects that last are projects that can integrate with other DeFi projects to grow the ecosystem. This is one of the reasons the Yearn’s mergers have gained a lot of attention and the projects continue to grow, while most other projects have fallen to the wayside.

That’s why Trinity places such a big emphasis on partnerships and integrations. Because its core features are cool and all, but not useful unless they can provide real value to users and partners.

We don’t see the DeFi boom stopping anytime soon, so our vision is to build a fully decentralized liquidity bridging protocol that will only grow bigger with time.