Snowball is launching alongside other first generation financial protocols on the Avalanche Network. The protocol takes advantage of yield farming on Pangolin and low gas fees on Avalanche to compound (snowball) your returns.
The Snowball protocol builds upon the work of Pickle Finance from the Ethereum Main-net. For our first community product, we are releasing Globes. Globes are smart contracts that allow users to reduce the cost of auto-compounding their returns at a high frequency. We have launched the experimental community governance SNOWBALL token and SnowGlobes.
In the interim, Snowball will solely be a way for users to take advantage of yield farming opportunities on Pangolin, a decentralized exchange on Avalanche. As more protocols are built on Avalanche, we expect to expand further. (So keep your eyes open for what we pull out of the freezer next!)
The Snowballing Protocol
We use a simple structure including a controller, strategy and globe smart contract. The Controller oversees the strategy and globe. The strategy is responsible for the claiming and managing of assets within the globe. Initial Snowball strategies will use Pangolin rewards to increase your position as a liquidity provider and provide sGlobe tokens as a receipt.
Example: Elsa is providing liquidity for Pangolin (PNG) and Avalanche (AVAX) tokens. She is able to get 10 PNG/week through the liquidity reward program which is about a 200% return when extrapolated over a year. However, with snowballing, she sells half her PNG every week for more AVAX, increasing the PNG she receives each week. Assuming that rates stay the same, she will now have a +600% return over the year.
Snowball Token & Governance
Snowball Finance is launching with no SNOWBALL premine. We believe in fair launches and will be using the launch period to best position Snowball Finance for empowering the community. Given the decreased cost of gas on the Avalanche blockchain, we plan to implement on-chain voting for governance.
However, to complement robust formal discussions through discord channels and proposals in the forum during the initial development process, snapshots will most likely be leveraged in the short-term.
The SNOWBALL distribution started on block 443700, around March 3rd, 2021. SNOWBALLS will follow a strict monetary policy that caps the growth of the supply at 18 million. The distribution of SNOWBALLS will be as a liquidity incentive to our globes, creating Snowglobes. We plan to launch 15 million snowballs to the community over the first million blocks with a step wise function every 200k blocks. The other 3 million will be allocated towards governance and the devFund.
Projected Breakdown of the initial SNOWBALL tokens during the bonus period is expected to be as follows:
- 80% Liquidity Provider Incentive
- 10% Governance Allocation
- 8–9.5% DevFund
- 0.5-2% Pickle Finance Community Airdrop*
*SNOWBALL will be sent to Pickle Governance
Currently a 20% performance fee from profits is split between the Snowball governance treasury and developer fund. Just as snow melts, the devFund will decrease periodically over a two year period, increasing fee allocation to the governance treasury.
To fairly compensate the initial development of Snowball , we have set up a devFund where tokens and fees will be vested over time. (monthly vesting up front)
The dedicated allocation to the devFund will decrease over time and increase the funding of governance. This will not remove the ability for governance to allocate future funding.
Snowball Governance Token: https://cchain.explorer.avax.network/address/0xC38f41A296A4493Ff429F1238e030924A1542e50/contracts
Contributors to Snowball have made reasonable efforts at ensuring the integrity of the protocol including tests. Snowball is monetarily valueless and has 0 entitled financial value. Anyone who chooses to engage with these contracts, including the Snowball token contract, are doing so at their own risk. You should perform your own due diligence.
You can start depositing LP tokens to the Snowball contract using the Avalanche Explorer Interface with Metamask or on Remix.
Join discussion in our Discord at: https://discord.gg/AHhjMjjH