Snowbank DAO
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Using Snowbank
Protocol Internals
Snowbank Cards
Staking
Stakers stake SB tokens, and receive governance Snowbank tokens (gSB) to earn rebase rewards and vote how liquidity is incentivized and directed. The rebase rewards come from the proceeds from mint sales, and can vary based on the number of SB staked in the protocol and the reward rate set by monetary policy.
Governance SB (gSB)
Users can stake their SB tokens to receive gSB tokens in order to collect rebase rewards. There is a staking warmup period of 6 epochs (48 hours) before gSB starts collecting rewards after being staked.
Snowbank’s native protocol governance token, gSB, serves several purposes:
- The first main application is to remain staked in order to earn rebase rewards. Users can earn gSB by staking their SB tokens. gSB collects rebase rewards in the same way that sSB does, however you won't see your token balance increase because the increase in value is based on the Current Index at the time of purchase and sale.
- Next, it is the network’s incentivization token for liquidity providers (minters)
- Lastly, only gSB can be used to vote on governance proposals, and they must be staked before the beginning of a given period to vote for that period’s session.
Tokenized Liquidity
gSB can be thought of as a homogeneous form of tokenized liquidity. It’s representative of the ability to direct any liquidity assets into the treasury.
Monetary Policy
Snowbank’s v2 helps to build a decentralized reserve currency powered by a productive asset: the treasury. The Reward Rate is the configured percentage of SB distributed to all stakers on each rebase relative to the total supply.
The reward rate is precisely set by the Policy Team, an elected party of 7 users, which will be reelected every 6 periods.
Utility
Snowbank will rely on a network of partners to increase utility for the gSB and SB tokens. One of these partners will help enable the “Borrow” utility, allowing users to borrow using gSB as collateral.
Last modified 4mo ago
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