Snowbank DAO
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Liquidity Acquisition
Minters deposit liquidity-pool tokens into individual Turbines, and receive discounted SB tokens in exchange. This allows Snowbank to acquire liquidity through opportunistic liquidity providing, a risk-less operation for users. The protocol quotes the minter with terms such as the mint price, the amount of SB tokens entitled to the minter, and the vesting term.

Turbines Capacity

A Turbine is another name for a specific minting contract for a given liquidity pair. Minters deposit their liquidity-pool tokens in a Turbine that sends these assets to the treasury to become protocol-controlled.
Each Turbine has an individual capacity defined as a percentage of the total debt supported by the protocol, defined at the high level by decentralized governance voting during sessions.
Partner protocols have the opportunity to add incentives that will be received by minters who mint on a specific turbine, providing a composable way to encourage deep and sustainable liquidity for protocols.

Turbines Minting

SB acquired by minting are staked at the time of purchase. This means that any positive discount will outperform rewards from staking, creating easy to understand incentives for liquidity providers. This will help maximize protocol efficiency greatly.
Instead of mints vesting linearly, minters must wait until the end of their vesting term to unstake their SB tokens. This illiquidity creates a form of locked staking that enables users that minted prior to the beginning of a period to have full votes with their gSB for the next session.

Genesis Turbines

Genesis Turbines are Turbines that exist to support Snowbank’s own liquidity. These Turbines capacities are managed by the Policy Team.

Reverse Minting

Reverse minting will not be included in the initial release, but it is expected to be added soon after. In return for SB tokens, users can get liquidity from the Treasury at a negative discount through reverse minting. This will act as a deflationary mechanism while also providing users with arbitrage opportunities. Reverse minting would only be available if a governance vote approved it for a certain Turbine.