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Rebirth - Redistribution
Last week, we shared our plan to organize an event that would mark the rebirth of Snowbank, the first milestone in our transition to the second version, a new protocol that will generate a paradigm shift in the way protocols build deep sustainable liquidity!
Today, we will share further details of Snowbank’s rebirth along with the schedule of the treasury redistribution with you!
We have observed how successful ConstitutionDAO has been at organizing a redeem option for $PEOPLE token holders, and want to follow a similar path for Snowbank. We want to be fair to each $SB holder, and will handle this carefully to make sure everyone understands their options! Rest assured, there will be ample time to ask questions so that each holder will be able to arrive at a decision by themselves!
Snowbank has been immensely successful, well exceeding our wildest expectations. The community built around Snowbank has been one of the most amazing crypto communities that ever came to life and Snowbank’s rebirth is how we are all gonna make it, with a bullish scenario for the future at the heart of DeFi.
Redistribution
The redistribution will give you two options:
- Option 1) Redeem a fixed MIM value per $SB equal to $SB risk-free value (risk-free value = treasury owned reserves divided by supply of $SB owned by users, more details found in the questions section below)
- Option 2) Keep your $SB tokens and own a share of Snowbank’s v2. We strongly believe that there are huge opportunities for this new protocol. However, keep in mind that future plans for Snowbank are highly experimental, that there has been no market validation, and software development requires remaining cautiously optimistic about its release schedule due to the nature of work. Nothing here is financial advice and be sure to DYOR.
When will the redistribution happen?
On December 23rd, a new page will appear on Snowbank’s dapp (https://dapp.snowbank.finance/) called “Redistribution”.
On this page, if you wish to proceed with Option 1, you will be able to enter the amount of $SB tokens you want to swap for a fixed amount of MIM per $SB token equal to the $SB risk-free value at the moment staking rewards and bonding is paused on December 23rd. There will be no slippage, and everyone will get the same amount of MIM per $SB, regardless of the time the swap is executed.
The Redistribution page and redeem feature will only be available until January 3rd. In order to maintain the risk-free value fixed for the duration of the rebirth event, staking rewards and minting will be paused, this will be explained in more details below.
How is the risk-free value per $SB calculated?
Risk-free value per $SB is calculated by adding all treasury owned assets market value: MIM, MIM from the SB-MIM liquidity pool, AVAX from the AVAX-MIM liquidity pool.
And dividing this by all user owned $SB: calculated by taking the $SB total supply, minus the amount of $SB owned by the DAO, as well as $SB owned by the liquidity pools. The current RFV per $SB is already available on our dashboard! You can view it here: https://dapp.snowbank.finance/#/dashboard
Why are staking rewards and minting paused?
Every rebase, $SB total supply increases by 0.5%. Given that the treasury owned assets market value doesn’t change (assuming there is no revenue from mints), it means that the RFV reduces by 0.5% (more supply, same treasury owned assets) each rebase, which is something we don’t want to occur during the redistribution to make it fair for everyone.
Staking rewards and minting also needs to be paused while we transition to Snowbank’s v1.1, as it’s when we will be launching 2 genesis turbines (SB-MIM and SB-FRAX) as well as the first turbine (MIM-AVAX). Hence, this is a necessity for our preparation towards launching Snowbank’s v1.1!
How will the redistribution event influence the treasury?
$SB risk-free value won’t be reduced by the redistribution event, this value will remain the same when we start Snowbank v1.1 on January 3rd.
When will development for Snowbank’s second version start?
Snowbank v1.1, our Minimum Viable Protocol, will be launched on January 3rd. This will enable the team to test, learn and iterate on the future of Snowbank. We will be able to test our hypothesis and evaluate demand for our upcoming product. January 3rd will be Period 1, meaning our first session will start Saturday 15th (as an $SB holder, you will be able to participate to governance in a similar way you will be able as a $gSB holder in the future: https://docs.snowbank.finance/snowbank-v2/governance) Learn more about Snowbank v2 here: https://docs.snowbank.finance/snowbank-v2/introduction
Depending on the amount remaining in the treasury, we will submit a governance vote in January to validate a budget envelope as well as community guidelines for the development of the second version. We will also organize a community discussion before moving on to the proposal.
Conclusion
We want to emphasize again that the path ahead is going to be a journey into the unknown. There will be ups and downs, but it’ll be worth it. We remain very optimistic about the future plans laid out for Snowbank and we are confident that we can do better. The best is yet to come, trust the process and once again, remember that Snowbank is here to stay! Coming up next, keep a lookout for our incredible partner reveal for “Borrow”!
Last modified 4mo ago