Since the beginning of 2021, the AVAX token of Avalanche has been doing a top-peak performance. To keep the ball rolling, more Venture Capitals and adoptions come to the DeFi ecosystem. Snowball is one of the fastest-growing DeFi projects on Avalanche.
The article below will provide all the detailed information about Snowball, including:
- What is Snowball? How does it work?
- All the detailed information about Tokenomics and how to buy, store SNOB tokens.
- Is Snowball (SNOB) a good investment?
Let's roll the ball!
What is Snowball?
Snowball is a DeFi protocol running on the Avalanche blockchain. Like other platforms, Snowball offers a vast range of innovative products that benefit the ecosystem.
The main product of Snowball is Compounding which basically allows users to earn more rewards by reinvesting the rewards. To accelerate growth, StableVault is an AMM for trading stablecoins and pegged tokens.
Besides those two primary DeFi products, Snowball provides the Lending service and NFT marketplace to meet the trending demand. It has an ambitious goal to be the leading platform of the Avalanche ecosystem.
To attract more users and TVL to the protocol, Snowball introduced Axial acting as the liquidity center. The pool can contain stablecoin, synthetics, and derivatives to facilitate users to swap/trade with the lowest fees on Avalanche.
How does Snowball work?
Compounding - SnowGlobes is a Snowball’s feature allowing users to compound the rewards automatically; in another way, it reinvests the rewards to earn profit. When you provide liquidity on either Pangolin or TraderJoe, you can participate in Snowball to compound your rewards.
Manual compounding charges gas fees; however, with Snowball, it requires no gas fees. The platform pays you instead. Moreover, you will save your valuable time for other activities when using Snowball’s compound. Most importantly, SNOB tokens are distributed to compounding participants. Notably, Snowball takes 10% fees for providing the auto-compounding service.
StableVault is an Automated Market Making product for trading stablecoins and pegged tokens with comparatively low slippage and fees. s3D and s3F StableVault were deprecated, and the latest StableVault is an s3D pool including DAI.e, FRAX, TUSD, and USDT.e tokens.
For incentives, users can provide liquidity to get a cut of the trading fees. Furthermore, to earn additional SNOB rewards, users can deposit StableVault receipt tokens into the compounding pool. And in the future, StableVault will integrate with other lending strategies for higher APRs.
What is SNOB Token?
The SNOB token is the tradable governance token of Snowball. In general, SNOB tokens are often rewarded to Liquidity Providers or participants of Snowball. Users receive xSNOB to vote on new proposals, allocation changes and earn boosted SNOB rewards when locking SNOB.
Detailed information about SNOB Token
SNOB Key Metrics
- Token Name: Snowball Token.
- Ticker: SNOB.
- Blockchain: Avalanche C - Chain.
- Token Standard: ARC-20.
- Contract: 0xc38f41a296a4493ff429f1238e030924a1542e50.
- Token Type: Utility.
- Max Supply: 18,000,000 SNOB.
- Circulating Supply: 5,702,587 SNOB.
SNOB Token Allocation
The SNOB Token has a total max supply of 18,000,000 tokens distributed as follows:
SNOB Token Sale
20% SNOB tokens for developers and Snowball Treasury will be gradually released for two years.
SNOB Token Release Schedule
Currently, SNOB tokens are being released through incentive rewards. The emission schedule is described as follows:
The schedule can be changed by governance proposals, and the emission rate gradually inclines over time.
SNOB Token Use Case
On the Snowball platform, there are lots of DeFi products to earn SNOB so that users can take advantage of SNOB in multiple ways, including:
- Providing Liquidity on other platforms such as Pangolin or Trader Joe is the best use of SNOB tokens to earn passive income.
- SNOB tokens can be locked to own xSNOB tokens for participating in voting on community proposals. Hence, that voting feature makes Snowball decentralized.
- Like other major exchanges, xSNOB can be staked to earn additional SNOB.
- Teddy, a lending/borrowing product, allows AVAX holders to mint TSD native stablecoin for Avalanche. However, this will capture value for AVAX tokens instead of Snowball's native tokens, saddening SNOB holders.
SNOB is now available on TraderJoe and Pangolin. Here’s the tutorial on how to use Pangolin on Coin98 Wallet. In addition, we will instruct you to buy SNOB on the Coin98 Mobile Wallet.
How to buy SNOB Token using Coin98 Exchange
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select Pangolin.
Step 3: Choose coins/tokens for trading:
- Search SNOB.
- If the result does not come up, you can paste the contract of SNOB into the search box: 0xc38f41a296a4493ff429f1238e030924a1542e50
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store SNOB Token
You can store, send, receive SNOB Tokens on Coin98 Wallet with a few single steps. The guides on how to make transactions with SNOB on Coin98 Wallet are as follows.
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search SNOB Token.
Step 3: Click on the correct result, copy the wallet address and send SNOB to this address.
How to buy SNOB on the Coin98 Wallet dApp browser
Step 1: Open the Coin98 Mobile Wallet. Select Browser and search Trader Joe.
Step 2: Click Trade on the trading interface.
Step 3: Select a trading pair, for example, AVAX/SNOB, then enter the trading amount.
Step 4: Check all the information and confirm the transaction to finish.
Roadmap & Updates
Snowball’s roadmap is constantly updated as time goes on. However, on the website of Snowball, the roadmap is just planned until the end of 2021, and it seems the Snowball team does not update it.
- Snowball Launch on March 7th, 2021.
- Timelocks & Multisig for safety enforcement.
- New auto-compounding strategies
- s3D StableVault with DAI, BUSD, and USDT.
- On-chain Governance
- NFT marketplace.
- Pangolin auto-compounding strategies
- SNOB Staking.
- Update governance.
- New auto-compounding strategies.
- StableVault Lending for higher APRs.
Snowball Roadmap 2022
Team, Investors, and Partners
Snowball’s team remains anonymous, and they use pseudonymous Twitter accounts representing the team for promoting the project and enforcing decentralization for the community.
Is Snowball (SNOB) a good investment?
Currently, Snowball aims to be the leading project in the Avalanche ecosystem. Its potential is visible through what it has performed and contributed to the ecosystem. To clarify, there are some key highlights from Coin98 for investment considerations:
- Notably, Snowball uses Compound to help users gain additional profits without paying extra fees. Because everyone likes higher APYs when providing liquidity, right? As we see in the picture, most pairs on Snowball don't include SNOB ⇒ SNOB can't capture much value from the protocol.
From the user perspective, instead of investing in the SNOB token, we can earn token rewards in the pool with high APYs, especially when compounded. However, Impermanent Loss will irritate us when we participate in liquidity provision.
- Snowball’s market cap is comparatively small, about $1.3M compared to similar projects such as CRV with billions and PICKLE with over $13M in mc. At the moment, the 2021 bullish year has passed, we will experience many price corrections and cash flow flooding in and out. Snowball needs a bullish signal from Avalanche to bootstrap the entire ecosystem.
- After 1 year in operation, Snowball's TVL has created an upside-down U shape. It was multiplied to reach over $80M on the protocol in Q4 2021, then it drastically declined to the number of $23M. The team is developing other products instead of keeping improving the compounding protocol. This might be the main factor for the TVL drop.
To reiterate, Snowball is now heading to build more products on the network to diversify the services to its users, whether this strategy yields good results?. And as usual, whether it is worth investing or not, Do Your Own Research before buying and be responsible for your investment.
Although Snowball is the leading project on Avalanche, it also has numerous competitive projects on other blockchain platforms, namely:
- Curve Finance: A decentralized exchange built on Ethereum for specifically trading stablecoins.
- Pickle Finance: A yield-optimizing protocol to maximize the yield from other DeFi platforms.
Being one of the first projects in the Avalanche ecosystem, Snowball is a notable project that shows the future potential of competing with other strong opponents. Inevitably, big projects are limited by the blockchain platform, so there is a high chance for new startups to overcome. In addition, Snowball is oriented towards users’ convenience.
And that is all you need to know about Snowball and its SNOB token. I hope you’ve gained useful insight to understand the future potential behind Snowball better.
If you want to know further about Snowball, please leave a comment below and join Coin98 Community for further discussions about Crypto.