# 06. 3Fi Collateral
###### tags: `Done`, `Functions`, `Smart Contracts`

**Purpose:**
* Understand Collateral tokens and how they are obtained on 3.Finance.
* Understand how Collateral tokens are used on 3.Finance.
* Understand Collateral NFTs and how they are obtained on 3.Finance.

Content:

> Definitions
> References
> Journeys:
>> **CRV** as Collateral: when and how.
>> **3Fi tokens** as Collateral: when and how.
>> **3Fi NFTs**

## Definitions

* An **asset-stack** is a standalone product within 3.Finance. Each asset-stack should be clearly differentiated within the construction of 3.Finance. (Only 1 asset-stack will exist for MVP, that shall be the '**Curve Asset-Stack**')
* The **Curve asset-stack** is made of 3 '**Compound tokens**'. These are: CRV, CVX and BENT. (Plus any derivatives mentioned in the Journeys below)
* In the **ALL asset-stacks** the associated tokens are also split by the following two definitions:
* A '**Grassroots**' token is a token from which all value is attained. In the Curve asset-stack, CRV is the grassroots token.
* A '**Control**' token is a token from which governance and protocol revenue is managed and distributed. In the Curve asset-stack, CVX and BENT are the control tokens.
* Currently, all asset-stacks will be derived by x1 grassroots token and x2 control tokens.
* **Compound tokens** are tokens that are favoured by 3.Finance. These favoured tokens make the foundation for 3.Finance tokens and NFTs. These tokens will be auto-compounded.
* **Liquid tokens** are tokens that are not favoured by 3.Finance. These unfavroued tokens are used to boost the deposit balance of those Compound tokens.
* **Compound Deposit Pools** or **CDPs** are pools where compound tokens are deposited and auto-compounded.
* **Liquid Deposit Pools** or **LDPs** are pools where liquid tokens are deposited.
* **Rewards** are tokens received by other protocols that are not yet in the 3.Finance ecosystem.
* **Emissions** are tokens received as rewards for depositing liquidity. Emissions are received by external protocols and are within the 3.Finance ecosystem.
* **Compound Emissions** are tokens received as rewards and are of the format of '**Compound tokens**'.
* **Liquid Emissions** are tokens received as rewards and are of the format of '**Liquid tokens**'.
* **Flagged tokens** are tokens that, when deposited, have impositions applied that prevent or delay withdrawals of the underlying asset. Each of the curve asset-stack tokens also happen to be flagged tokens.
* The **Streaming** contract referrs to the smart contract that receives rewards from external protocols and streams them to wallets with associated deposits within the 3.Finance eco syste, as Emissions on a pro-rata basis over a 7 calander day period.
* A **Signal** is when a user, during the harvest process; selects a specific direction they wish emissions to be harvested.
* The **Signals** contract referrs to the smart contract that registers how each connected wallet has directed their emissions during their **last** harvest. This **Signal** is then used by other functions when harvesting on behalf of other registered wallets.
* A **Registered Wallet** is a wallet that has once connected to and transacted on or via the 3.Finance protocol and is therefore, for all intents and purposes: registered with the protocol.
* A '**Collateral**' token is a token that is accepted and used as a source of funds by **Money Apps** to initiate specific functions of a Money app.
* '**Static-time**' referrs to how long an NFT has remained static within a specific wallet.
* '**Power-level**' referrs to the number of assets required to mint a specific NFT. The more assets required to mint an NFT, the higher its power-level.

## References

View 1 - Shows CRV as collateral ('**CRV wallet**'), listed under the '**3Fi Collateral wallets**' group.

View 2 - Shows 3Fi tokens as collateral ('**3Fi Card**'), listed under the '**3Fi Collateral**' group.

View 3 - Shows 3Fi NFTs as collateral ('**ParAi:SorAi**'), listed under the '**3Fi Collateral**' group.

Asset flow map: https://miro.com/app/board/uXjVPXa0dtg=/?share_link_id=954974888495 (Specificly the 'Movement of Compound Token' notes)

## Journeys

### CRV as Collateral (View 1)
This section is specific to the '**Curve asset-stack**'.

1. The curve asset-stack consists of: CRV, CVX and BENT,
2. Of which: **CRV** is the '**Grassroots**' token. And;
3. Of which: **CVX** and **BENT** are the '**Control**' tokens.
4. As CRV is the grassroots token, it also obtains the status of '**Collateral**' once specific actions and/or assets within 3.Finance are undertaken and/or obtained.
5. **CRV** becomes '**Collateral**' when a user holds 3Fi tokens and or 3Fi NFTs in their connected wallet.
* Holding these so stated tokens/NFTs activate the '**3Fi Collateral wallet**' found within the '**Emissions**' space.
* Holding these so stated tokens/NFTs also activates the '**3Fi**' options in the **Curve Emissions** action drawer and **NFT Widget**. These options allow users to direct collected CRV or liquid emissions to be converted to CRV towards their connected wallets '**3Fi Collateral Wallet**'.
6. See the secton below to understand how 3Fi tokens may be obtained and used as collateral.

### 3Fi tokens as Collateral (View 2)
This section explains how 3Fi tokens are minted, burned and used as collateral.
**Note:** This is a general explanation that may be applied to any type of 3Fi token, noting further that there may be multiple types of 3Fi tokens.

> What is a 3Fi token?
1. A 3Fi token is an expression of governance over the asset-stack to which it belongs.
2. Each asset-stack will have the ability to mint, burn and use as collateral; the 3Fi token specific to that asset-stack.
* As an example:
* The Curve asset-stack will have the ability to mint, burn and use as collateral a 3Fi token that is specific to its own stack.
* From a smart contract perspective, this 3Fi token must make reference to which asset-stack it belongs. For example:
* **3FiCRV** might be used to convey the 3Fi token for the Curve asset-stack.
* **3FiBAL** might be used to convey the 3Fi token for the Balancer asset-stack. And so on...
3. 3Fi tokens hold rights over only those assets specific to its own asset-stack.
> These rights include but may not be limited to: governance and protocol revenue share sourced from protocols directly or indirectly related to the assets used in the asset-stack.
4. 3Fi tokens collectively share governance rights over the 3.Finance protocol.
> This is to say, the sum of all 3Fi tokens and types.
5. All 3Fi tokens will be of an ERC20 format.
6. To mint, burn or use a 3Fi token as collateral, the following must occur:

> **Minting 3Fi Tokens**
>
> The example below is specific to the Curve asset-stack but speaks to the general process required to obtain a 3Fi token.
* The connected wallet must first hold sufficient balances of both '**Control**' tokens within their respective C.D.P's. Ie:
* An LP position within the Convex C.D.P and
* An LP position within the Bent C.D.P.
* There will be no minimum requirement to mint 3Fi tokens, however an equal amount of each control token **IS** required. Ie/Eg:
* 1 CVX + 1 BENT = 1 3Fi token (3FiCRV) (See **Amendment** below)
* Thus, to mint 1 3Fi token within the Curve asset-stack, the connected wallet must supply 1 part Convex C.D.P LP with an equal part Bent C.D.P. LP. These equal parts will be transferred to the **3FiCRV Contract** before minting the appropriate 3FiCRV tokens.

> **Amendment Dec' 31st 2022**
> **IMPORTANT**
> I wish to clarify the mint requirements for 3Fi further:
>> 3.Finance is taking the stance that any pegged asset used within our asset stacks is considered **THE SAME** as the underlying asset.
>> In other words: within 3.Finance, the use of say '**bentCVX**' is considered the same as using '**CVX**' and therefore; both are treated as 1:1 within 3.Finance. Thus: The above formula for minting 3Fi tokens can be amended to read:
>> **1 bentCVX + 1 BENT = 1 3Fi token. (3FiCRV)**
>>> **Note:** This is also the case for sdCRV, however it is NOT the case for weBENT because weBENT is not a PEG. Therefore, within the UI, when a user deposits weBENT into the Bent CDP, the balance reflected will be the BENT balance, NOT the weBENT balance.

>**Note:**
>These 'equal parts' referred above, speak to the underlying asset, NOT the wrapped asset. The intent is 1 CVX + 1 BENT = 1 3Fi token but as we are ONLY able to use the wrapped equivalents, we must ensure the amount supplied equates to the stated amount of the underlying assets.
>3FiCRV tokens will have a maximum theoretical cap of 100M tokens. This is because there are 100M CVX tokens AND 100M BENT tokens. It is important therefore to understand that the C.D.P LP positions that are being supplied may NOT directly correlate to the stated hard cap. This is because the figures stated above reference the underlying assets NOT the LP tokens received.

7. The following Journey describes the minting process as described above:

* The user navigates to the **Deposits** space.
* The user wishes to create '**3Fi**' tokens, so the user selects the '**3Fi**' token card found within the '**Collateral**' group. Then:
* If the user does not have any positions within the specified CDP's or they have one but not the second, the UI will prompt the user where to go to learn more about aquiring the necessary LP positions.
* See designs:
* Figma / Page 4 of Spec's:
* App / Deposits / 3Fi Collateral / Mint / No Supply
* App / Deposits / 3Fi Collateral / Mint / Half Supply = Convex C.D.P
* App / Deposits / 3Fi Collateral / Mint / Half Supply = Bent C.D.P
* Once the user has both of the necessary LP positions:
* The UI prompts the user to enter the quantity of 3Fi tokens they wish to mint.
* The user will enter the quantity desired.
* If the user enters a quantity that exceeds the defined mint limit, the UI will display an error and prompt the user to correct the error before proceeding.
* If the user enters a quantity that is equal to or below the defined mint limit, the '**Mint 3Fi tokens**' button will activate.
* Selecting the '**Mint 3Fi tokens**' button and signing the subsequent transaction(s), the following will occur:
* The specified Convex LP tokens will be moved to the '**3Fi token smart contract**'.
* The specified Bent LP tokens will be moved to the '**3Fi token smart contract**'.
* The equivalent quantity (also specified by the user) will be minted and deposited into the connected wallet.
* For reference, see designs:
* Figma / Page 4 of Spec's:
* App / Deposits / 3Fi Collateral / Mint / Ready State
* App / Deposits / 3Fi Collateral / Mint / ERROR State = Breach of Limit
* App / Deposits / 3Fi Collateral / Mint / Executable State
* App / Deposits / 3Fi Collateral / Mint / Resulting State (Sample)
* Further to the above:
* The 3Fi Collateral Card will remain selected,
* The associated Action drawer will remain in view,
* The content within the Action drawer will be updated dynamically,
* The content within the selected 3Fi Collateral Card and the two Highlighted cards (Convex & Bent CDP's) will be updated dynamically.

> **Burning 3Fi Tokens**
>
> The example below is specific to the Curve asset-stack but speaks to the general process required to burn a 3Fi token.

* The connected wallet must first hold 3Fi tokens.
* With 3Fi tokens in the connected wallet, each 3Fi token may be burned to retrieve the equivalent in wrapped assets. Thus:
* Buring 1 3Fi token will yield the equivalent of 1 CVX token and 1 BENT token. (In the wrapped CVX and BENT forms)
* The yield received by burning 3Fi tokens will be in the respective CDP LP format. Ie:
* Buring 1 3Fi token will yield the above stated equivalent CVX and BENT in the form of Convex CDP LP tokens (3vlVCX) and Bent CDP LP tokens (3vlBENT).

8. The following Journey describes the burning process as described above:

* The user navigates to the **Deposits** space.
* The user has 3Fi tokens in the connected wallet and wishes to burn some or all of the '**3Fi**' token balance, so the user selects the '**3Fi**' token card found within the '**Collateral**' group. Then:
* The 3Fi action drawer is revealed.
* The default view is '**Mint**', so the user selects '**Burn**'.
* The view is updated to reflect the available '**Burn**' options.
* The user is prompted to enter the quantity of 3Fi tokens they wish to burn.
* If the user enters an amount that exceeds their burn limit, an error will display prompting the user to correct the error before proceeding.
* If the user enters an amount equal to or below their burn limit, the '**Burn 3Fi tokens**' button will activate.
* Upon selecting this button and signing the subsequent transaction(s), the following will occur:
* The defined number of 3Fi tokens will be withdrawn from the connected wallet.
* Those withdrawn 3Fi tokens will be burned. Then:
* The equivalent number of Convex CDP LP tokens and Bent CDP LP tokens will be transferred from the '**3Fi Token Smart Contract**' to the connected wallet.
* For reference, see designs:
* Figma / Page 4 of Spec's:
* App / Deposits / 3Fi Collateral / Burn / Ready State
* App / Deposits / 3Fi Collateral / Burn / ERROR State = Breach of Limit
* App / Deposits / 3Fi Collateral / Burn / Executable State
* Further to the above:
* The 3Fi Collateral Card will remain selected,
* The associated Action drawer will remain in view,
* The content within the Action drawer will be updated dynamically,
* The content within the selected 3Fi Collateral Card and the two Highlighted cards (Convex & Bent CDP's) will be updated dynamically.
* If or when the user no longer has a balance of 3Fi tokens to burn, the action drawer will update to reflect this.
* There is also a prompt within this view, directing the user to where they can mint 3Fi tokens.
* For reference, see designs:
* Figma / Page 4 of Spec's:
* App / Deposits / 3Fi Collateral / Burn / No Supply

> **3Fi Tokens as Collateral**

3Fi tokens are considered '**collateral**' when they are staked within the '**NFT Smart Contract**'. For more details, see the section below titled: '**3Fi NFTs (View 3)**'

### 3Fi NFTs (View 3)
This section explains how 3Fi NFTs are minted, burned and otherwise used within the 3.Finance ecosystem.

> What is a 3Fi NFT?
9. A 3Fi NFT is an expression of both governance over the asset-stack to which it belongs and a right to a share of protocol profits.
10. Each asset-stack will have the ability to mint and burn; the 3Fi NFT specific to that asset-stack.
* As an example:
* The Curve asset-stack will have the ability to mint and burn a 3Fi NFT that is specific to its own asset-stack.
* From a smart contract perspective, this 3Fi NFT must make reference to which asset-stack it belongs. For example:
* **ParAiCRV** might be an example used to convey the 3Fi NFT for the Curve asset-stack.
* **ParAiBAL** might be used to convey the 3Fi NFT for the Balancer asset-stack. And so on...
> Noting that ParAiCRV and ParAiBAL are both NFT's with the same '**power-level**' of 'ParAi' but with different artwork and associated to different asset-staks.
11. 3Fi NTFs hold rights over only those assets specific to its own asset-stack.
> These rights include but may not be limited to: governance and protocol revenue share sourced from protocols directly or indirectly related to the assets used in the asset-stack as well as the 3.Finance protocol.
12. 3Fi NFTs collectively share governance rights over the 3.Finance protocol on a pro-rata basis, based upon their respective and underlying 3Fi token count and 3.Finacne protocol revenue based upon other factors such as '**static-time**' and '**power-level**'. (More on this later)
> This is to say, the sum of all 3Fi NFTs, accross all asset-staks.
13. All 3Fi NFTs will be of an ERC721 format. (Conrad to confirm)
14. To obtain a 3Fi NFT, the following must occur:

> The example below is specific to the Curve asset-stack but speaks to the general process required to obtain a 3Fi NFT.
* The connected wallet must first hold sufficient balances of both '**3Fi tokens**' and Curve CDP LP tokens. Ie:
* 3Fi Tokens and;
* An LP position within the Curve C.D.P.
* **Note:**
* NFT's can not be fractional.
* The minimum requirements therefore will always be a factor of how many 3Fi tokens + Curve CDP LP tokens are required to mint 1 whole NFT; depending on the power-level of the desired NFT.
* There are five (5) NFT power-levels in total. These are so named:
* ParAi, TomAi, MolAi, MatAi and SorAi
> *(From lowest to highest power-level)*
* Each power level has different requirements. These are as follows:
* 1 ParAi NFT = 100 3Fi tokens + 1,000 CRV (Curve CDP LP equivalent)
* 1 TomAi NFT = 10 ParAi or the equivalent 3Fi + Curve CDP LP tokens.
* 1 MolAi NFT = 10 TomAi or the equivalent 3Fi + Curve CDP LP tokens.
* 1 MatAi NFT = 10 MolAi or the equivalent 3Fi + Curve CDP LP tokens.
* 1 SorAi NFT = 3 MatAi or the equivalent 3Fi + Curve CDP LP tokens.
* Hard Caps for NFTs are therefore based upon the availability of the underlying tokens.
* Hard Caps for NFTs are also theoretical as they each require the same type of underlying tokens to be minted and thus their individual numbers can never be sustained if the next or previous NFT is to exist at all.
* To this effect, it is important to understand that NFTs with lower power levels are burned when used (through a NFT merge) to mint NFTs of higher power levels.
* It is also important to understand that retaining artwork for NFTs is only possible through the process of merge. Thus:
* When an NFT is burned, the artwork connected to that NFT being burned, is lost to the user.
> To reitterate, the recommended rules are:
> >**If NFT's are merged to mint higher power levels:**
> >One copy of the lower powered NFT's artwork may be minted separately during the merge process. (It will have slightly altered art work to reflect that it no longer has any assets)
> >**If NFT's are burned:**
> >The artwork associated with that NFT is also burned and therefore lost to the user.

> **Minting 3Fi NFTs** (Using tokens)
>
> The example below is specific to the Curve asset-stack but speaks to the general process required to obtain a 3Fi token.

15. The following Journey describes the minting process when tokens are used:
* A user wishes to mint 3Fi NFTs. To begin, they navigate to '**Deposits**' and select the '**3Fi token**' card.
* This opens the 3Fi token action drawer with the: '**Mint**' view displayed.
* The user then selects: '**NFTs**' This updates the action drawer view to reflect those options applicable to the NFT view.
* If the user does not have positions in one or both of the required tokens, the UI will reflect this and prompt the user where they can obtain the necessary positions.
* For reference, see designs:
* Figma / Page 4 - Spec's
* App / Deposits / 3Fi Collateral / NFTs / No Supply
* App / Deposits / 3Fi Collateral / NFTs / Half Supply = 3Fi Token
* App / Deposits / 3Fi Collateral / NFTs / Half Supply = Curve C.D.P
* If the user has the positions required to mint the NFT(s) but not sufficient quantity to mint the desired Power-Level, the UI will reflect this and prompt to the user, which assets are required and where to go to add to this positions OR to select a lower power-level.
* If the user has the positions required to mint the NFT(s) sufficient enough to mint the desired Power-Level, an '**amount entry field**' will be displayed. Entering the desired amount, the following may occur:
* If the amount entered exceeds the defined mint limit, an error will occur and the UI will prompt the user to correct the error before continuing.
* If the amount entered is equal to or lower than the mint limit, the '**Mint 3Fi NFT**' button will activate.
* On selecting the '**Mint 3Fi NFT**' button and signing the subsequent transaction(s), the following will occur:
> **Note:**
> >The amount entered reflects the number of NFT's a user wishes to mint.
> >Therefore, the amount of tokens requred and moved to mint this number will depend on the selected NFT Power-Level and its individual position requirements.
> >The appropriate number of 3Fi tokens = (Number of NFT's multiplied by the specified number of 3Fi tokens for 1 NFT of the selected Power-Level)
> >The appropriate number of Curve LP tokens = (Number of NFT's multiplied by the specified number of CRV tokens (Curve CDP LP token equivalent) for 1 NFT of the selected Power-Level)
* The appropriate number of 3Fi tokens will move from the connected wallet to the '**NFT Smart Contract**' and;
* The appropriate number of Curve CDP LP tokens (3sdCRV) will move from the connected wallet to the '**NFT Smart Contract**' then;
* The defined number of NFT's of the specified power-level will be minted and deposited into the users connected wallet.
> **Note:**
> >3Fi NFTs are transferrable.
> >3Fi NFTs are considered a claim on positions held and managed by the '**NFT Smart Contract**'.
> >3Fi NFTs may at any time request CRV or the FRAX equivalent, accrued by the '**NFT Smart Contract**'.
> >>If CRV is requested, this CRV is '**deposited**' into the users '**CRV Collateral wallet**' in the emissions section.
> >>If FRAX is requested, the accrued CRV is converted to FRAX before depositing the FRAX in the users connected wallet.
* For reference, see designs:
* Figma / Page 4 - Spec's
* App / Deposits / 3Fi Collateral / NFTs / Ready State
* App / Deposits / 3Fi Collateral / NFTs / ERROR State = Insufficient Supply
* App / Deposits / 3Fi Collateral / NFTs / ERROR State = Breach of Limit
* App / Deposits / 3Fi Collateral / NFTs / Executable State

> **Other Notes:**
> When minting 3Fi NFTs with other tokens, there are 5 round buttons each representing a different power-level.
> The reason all 5 power-levels are accessible dispite the possibility the user may not have the necessary assets; is to allow users the opportunity to learn just how many assets are required for each power-level.

#### The '**NFT Smart Contract**'.
I feel it important at this stage to describe how I expect this smart contract to work.
* When minting 3Fi NFT's from token position, I expect there to only ever be 1 smart contract that receives the 3Fi tokens and Curve CDP LP tokens. Irrespective of which NFT power-level is minted. (I say 1, but I am not a smart contract expert! If required, please let us discuss this matter)
* With this in mind, I expect each 3Fi NFT to represent a claim specific to the token requirements of its power-level.
* When a user mints more 3Fi NFTs with tokens, they are simply adding to their positions within this smart contract.
* When a user goes through the process of merging 3Fi NFT's to aquire higher-power levels, this process does not change or effect the size of the users respective claim on the underlying tokens.
* Thus the merge process is exclusive to the NFT and its representative artwork. (More on this process below).
* 3Fi NFTs, when minted are deposited into the users connected wallet. They are not staked on 3.Finance.
* 3Fi NFTs, may in the future be staked as collateral for lending purposes. This however is not part of MVP.

> **Minting 3Fi NFTs** (Using other NFTs)
>
> The example below is specific to the Curve asset-stack but speaks to the general process required to obtain a 3Fi token.

16. The following Journey describes the minting process when other 3Fi NFTs are used:
* A user wishes to merge 3Fi NFTs. To begin, they navigate to '**Deposits**' and select the '**3Fi NFT**' card of the NFT power-level they wish to merge.
* This opens the selected 3Fi NFT action drawer specific to that NFT's power-level with the: '**Merge**' view displayed by default.
* If the user has insufficient supply of the selected 3Fi NFT to merge to the next power-level, the UI will reflect this and prompt the user to add to their 3Fi NFT position before continuing.
>** Note:**
>The NFT power-level the user selected will not be selectable from the option of available levels to merge to.
>All NFT power-levels below the selected power-level will also not be selectable from the option of available levels to merge to.
* For reference, see designs:
* Figma / Page 4 - Spec's
* App / Deposits / NFT Screens / Merge / Insufficient Supply
* If the user has sufficient supply of the selected 3Fi NFT to merge to the next power-level, the UI will indicate each power-level the user may merge too by way of a green or red dot underneath each option.
* Having selected the desired power-level to merge too and;
* That user has sufficient supply for the power-level selected, an '**amount entry field**' will be visible.
* If the user enters an amount that exceeds the defined mint limit, an error will occur and the UI will prompt the user to correct the error before continuing.
* If the user enters an amount equal to or lower than the defined mint limit, two '**Merge**' buttons will activate.
* Selecting the '**Without Artwork**' merge button and signing the subsequent transactions will cause the following to occur:
* The appropriate number of lower-powered 3Fi NFTs will be withdrawn from the connected wallet and burned.
* The appropriate number of higher-powered 3Fi NFTs will be minted and deposited into the connected wallet.
* Selecting the '**With Art**' merge button and signing the subsequent transactions will cause the following to occur:
* The appropriate number of lower-powered 3Fi NFTs will be withdrawn from the connected wallet and burned.
* One copy of the artwork reflected against the lower-powered NFT will be minted as a separate NFT with no asset association or allocation.
> **Note:**
> This NFT is not a '**3Fi NFT**', it is only the artwork associated with 3Fi NFTs. Thus:
> This NFT does not need to conform to our naming standards and may take on a different name.
> These NFT's will have no mint limit other than periodic artwork updates perhaps. (Not for MVP)
* This NFT will be visually similar but NOT the same bc. it has no asset allocation and thus no voting power or profit share rights.
* The appropriate number of higher-powered 3Fi NFTs will be minted and deposited into the connected wallet.
* For reference, see designs:
* Figma / Page 4 - Spec's
* App / Deposits / NFT Screens / Merge / Ready State
* App / Deposits / NFT Screens / Merge / ERROR State = Insufficient Supply
* App / Deposits / NFT Screens / Merge / ERROR State = Breach of Limit
* App / Deposits / NFT Screens / Merge / Executable State

#### The '**NFT Profit Share Scheme**'.
I feel this topic is important enough to require its own document. Thus, for details please referr to document: **18. NFT Profit Share**
If not having this information creates a blocker, please highlight this fact as soon as possible.

> **Burning 3Fi NFTs**
>
> The example below is specific to the Curve asset-stack but speaks to the general process required to obtain a 3Fi token.

17. The following journey describes the process users will take when burning 3Fi NFTs:
* When a user wishes to burn a 3Fi NFT, they will navigate to '**Deposits**' and then select from the list of NFT power-levels they hold in their connected wallet; the power-level they wish to burn.
* Selecting the 3Fi NFT will reveal that 3Fi NFTs action drawer with the '**Merge**' options in view.
* The user will then select '**Burn**' and the UI will update to reflect the burn view.
* An '**Amount Entry Field**' will be visible.
* If the user enters an amount that exceeds the defined burn limit, an error will occur and the UI will prompt the user to correct this error before continuing.
* If the user enters an amount equal to or less than the burn limit, the '**Burn**' button will activate.
* Selecting the '**Burn**' button and signing the subsequent transaction(s) will cause the following to occur:
* The number of 3Fi NFTs specified by the user and of the selected power-level will be withdrawn from the connected wallet and burned, along with the NFTs artwork.
* The equivalent number of 3Fi tokens and Curve CDP LP tokens (3sdCRV) will then be withdrawn from the **NFT Smart Contract** and the deposited into the users connected wallet.
* If after the above burn process is complete and as the UI updates, it recognises that the user has no more 3Fi NFTs of the selected power-level, that 3Fi NFTs card will be deselected and removed from view and as a result; the action drawer is also expected to close (hide).

END