The Snowflake Exchange is a multichain stableswap that provides single-sided liquidity. Continue reading to learn about one of Polygon’s finest stablecoin yields.
Introduction
The Snowflake Exchange protocol is a next-generation single-side AMM (decentralized exchange) designed for exchanging stable cryptocurrencies on the Polygon blockchain (USDT, USDC, DAI, MAI). The protocol is built as a collection of smart contracts that favor censorship resistance, security, self-custody, and capital efficiency.
How Snowflake works
Unlike most competitors, Snowflake has chosen Asset Liability Management as their primary concept. This helps Snowflake become a hyper-efficient multichain stableswap, low slippage and high scalability. Snowflake is distinct in that liability is tracked. Liquidity providers will be provided LP tokens upon deposit to designate the exact amount and token that they have put. As a result, if the system is liquid, they will receive the same token amount upon withdrawal + token emission.
This design also provides Snowflake with additional benefits such as a method to track its financial health, the ability to lend out idle assets, the ability to enable new stablecoin solutions, and the elimination of impermanent loss.
The innovation of boost mechanism
In addition to the innovative Asset Liability Management concept, Snowflake distinguishes itself in the industry with its boost mechanism.
Snowflake provides its native token SNOW for liquidity mining through three different pools: Base Pool, Boosting Pool, and the forthcoming MATIC-SNOW Pool.
With Base Pool, you will receive SNOW Token in an amount that is proportional to your deposit’s part of the total deposit. Meanwhile, you will enjoy additional benefits from Boost Pool.
The Boosting Pool is intended to maximize the use of the extra token, voting escrow SNOW or veSNOW. This pool was developed to serve several goals, including incentivizing the purchase of SNOW tokens, encouraging long-term staking, and making farmed TVL directly tied to staked tokens.
veSNOW attributes:
- Every hour, 1 staked SNOW generates 0.014 veSNOW.
- The maximum veSNOW held with a deposit is equivalent to 100 times the deposit’s SNOW staked.
- veSNOW is reduced to 0 when SNOW is unstaked.
- Due to the nature of the smart contract, veSNOW is non-transferable and non-tradeable, i.e. the veSNOW token will be locked in the user’s private wallet.
Project Roadmap
Q2 2022
- Team build
- Advisor outreach
- Code development
- Smart contract development
Q3 2022
- Testnet deployment
- Community building(Telegram, discord)
- Seed funding completed
Q4 2022
- Complete audit with Coinsult
- Complete audit with Soken
- Mainnet launch
- Fair launch of $SNOW
- Alternative pools launch
- Cross-chain adoption
- DAO governance release
- Treasury management
Q1 2023
- Complete two more audits with Certik and Hacken
- CEX Listings
- 30% of protocol fees will be used on $SNOW buyback and burn, this means half of the protocol fees will go towards token holders in the form of burn
- Add utility to $SNOW token: performance fee sharing with protocol
Q2 2023
- More buyback and burn
- Integrate with more DEXes to add new pools
Tokenomics
Snowflake Exchange’s native token is SNOW. To generate veSNOW, SNOW can be staked. Due to the architecture of the smart contract, veSNOW is neither transferable nor tradable, and is therefore locked in the user’s private wallet.
Every hour, 1 staked SNOW generates 0.014 veSNOW. The most veSNOW a deposit can hold is 100 times the SNOW staked. In other words, reaching the veSNOW cap takes around ten months. You can always bet additional SNOW to increase your veSNOW earnings. You have the option to withdraw your staked SNOW at any time. However, if you unstake any amount, your accumulated veSNOW will be reset to 0. veSNOW can currently increase liquidity mining APR.
Token Details
Snowflake Token
- Name: Snowflake
- Symbol: SNOW
- Decimals: 18
- Total Supply: 400,000,000
- Initial Price: 0.004u
- Address: 0xE0f463832295ADf63eB6CA053413a3f9cd8bf685
Voting escrow PTP (vePTP)
- Name: Voting escrow SNOW (veSNOW)
- Symbol: veSNOW
- Decimals: 18
- Address: 0xfD5D4caDe98366d0b09c03cB3cEe7D244c8b6146
Distribution
Total Supply: 400,000,000 SNOW
- Initial Liquidity: 50,000,000 (12.5%)
- Liquidity Incentives: 240,000,000 (60%)
- Treasury: 30,000,000 (7.5%)
- Community Incentives and Marketing: 30,000,000 (7.5%)
- Team: 20,000,000 (5%)
- Seed Round: 20,000,000 (5%)
Learn More
Twitter: https://twitter.com/Snowflake_Defi
Telegram: https://t.me/snowflake_exchange
Discord: https://discord.gg/QUqQRfeUgG
GitBook: snowflake-exchange.gitbook.io
Github: https://github.com/Snowflake-exchange
Disclaimer
Opinions stated on CoinWire.com do not constitute investment advice. Before making any high-risk investments in cryptocurrency, or digital assets, investors should conduct extensive research. Please be aware that any transfers and transactions are entirely at your own risk, and any losses you may experience are entirely your own. CoinWire.com does not encourage the purchase or sale of any cryptocurrencies or digital assets, and it is not an investment advisor. Please be aware that CoinWire.com engages in affiliate marketing.
