Snowbank DAO

Introduction to Snowbank v2

Snowbank's v2 will generate a paradigm shift in the way protocols build deep sustainable liquidity.
The current state of DeFi relies on incentivized pool 2’s to rent liquidity from liquidity miners that support the risk of impermanent losses. To make matters worse for holders, this creates significant sell pressure from minters, as well as a misalignment of goals between the protocol and liquidity providers.
With mints, we flipped the liquidity mining model around by introducing protocol-owned liquidity. This means that protocols don’t need to rent liquidity from third parties, but can directly purchase them outright.
With Snowbank’s v2, we are going one step further, by creating a liquidity router for all protocols, that will be supporting a governance token poised to become the dominant cross-chain decentralized reserve currency by being backed by a basket of assets that gives it an intrinsic value that it cannot fall below.
Sitting one layer above decentralized exchanges and aggregators, Snowbank will allow control over what liquidity is built up in the treasury, and where this liquidity flows, while offering an easier, cheaper way for providing and sourcing liquidity.
By generating risk-less opportunistic liquidity-providing for everyone, Snowbank creates new behaviours for DeFi users and an extremely powerful tool to build liquidity for protocols.

High Level Protocol Functionality

Snowbank enables users to provide liquidity in exchange for discounted SB tokens, to stake these tokens to earn rebase rewards, and to control how liquidity is incentivized and directed.
Minters deposit liquidity-pool tokens into individual Turbines, and receive discounted SB tokens in exchange.
Stakers stake SB tokens, and receive governance Snowbank tokens (gSB) to earn rebase rewards and vote how liquidity is incentivized and directed.
gSB acts as a decentralized reserve currency, backed by LP tokens, as well as a form of tokenized liquidity. gSB holders are able to generate deep and sustainable liquidity on demand, for pairs they want, by controlling and directing Turbines incentives.
The protocol builds a strong reserve of diversified protocol-controlled assets in the Snowbank treasury, while capturing fees from providing liquidity across DeFi. Snowbank protocol-controlled assets (PCA) will be controlled by gSB holders through decentralized governance.
Snowbank’s v2 creates composability opportunities for new and existing token projects and DAOs, allowing for more strategic liquidity deployment, ownership, and control, by leveraging bribes and incentivizing Turbines with their own token.
In the long term, SB will become the most efficient cross-chain decentralized reserve currency, backed by a basket of protocol-controlled assets in the Snowbank treasury, while enabling the most powerful service to build deep sustainable liquidity for protocols.