A system for processing a signal includes a detector configured to detect a two-level stream of bits; a converter configured to generate a three-level control signal based on two adjacent values within the two-level stream of bits; and a switch configured to determine which of three different paths to couple a current source to based on a value of the three-level control signal. Thus, based on adjacent values of the output stream a three-level control signal is generated which controls coupling of the current source to one of three different paths. This type of three-level digital-to-analog converter can be, for example, part of the feedback loop of an analog-to-digital converter. Similar techniques can also be utilized in a multi-segment digital-to-analog converter in which each segment of the DAC is controlled by a 3-level control signal and the DAC is implement using PMOS devices. The current source for each DAC segment is diverted to ground, the M-node, or the P-node depending on the value of the 3-level control signal.