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?

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?

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?

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?

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?

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:

  1. Passive yields from holding TRI
  2. Liquidity treasure rewards
  3. Standard Uniswap 0.3% fees

How Does Trinity’s Alchemize Feature Work?

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?

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?

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.

Trinity Resources

Telegram: https://t.me/trinitytoken

Twitter: https://twitter.com/triprotocol

Github: https://github.com/trinityprotocol

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