Snowbank is building a community-owned decentralized financial infrastructure to make the world more stable and transparent.
Description of the Snowbank project
Snowbank DAO — a decentralized reserve currency protocol, which is available on the Avalanche network, based on the SB token. Each SB token is backed by a basket of assets (e.g. MIM tokens, SB-AVAX LP, etc.) in the Snowbank DAO treasury, which gives it an intrinsic value below which it cannot fall. Snowbank DAO also brings economic and game-theoretic dynamics to the market through staking and mining.
Work of stakers and miners:
| 1 | Stakers are betting on their SB tokens in exchange for more SB tokens. |
| 2 | Miners provide LP tokens or MIM tokens in exchange for discounted SBs after a fixed vesting period. |
Snowbank's goal - to create a policy-driven currency system, embedded in the AVAX network. In the long term, the developers believe that this system can help to optimize stability and consistency so that SB can function as a global unit of account and currency exchange. In the short term, the team intends to optimize the system for growth and wealth creation.
The main benefit for stakers - the increase in supply. The protocol produces new SB tokens from the treasury, most of which go to the participants. Thus, the profit for the stakers will come from their balance with automatic compounding, although price risk remains an important factor. That is, if the increase in the balance of tokens is ahead of a possible drop in price (due to inflation), the stakers will make a profit. The main advantage for miners - price constancy. Mayers deposit capital up front and are promised a fixed income at a set point in time. The miner's profit will depend on the SB price at the maturity of the minted SB.
More about defi app
Version 2 of Snowbank will launch simultaneously on Ethereum and Avalanche. It is targeting a large liquidity market and expanding to relevant EVM-compliant blockchains. Snowbank v1.1 Minimum Viable Protocol will launch on Avalanche and will provide deep and sustainable liquidity to the Avalanche ecosystem. Upon completion, all new contracts will be reviewed by an independent organization.
You can get more information through the introductory document. From social networks, the community leads:
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