TEMPEST
Chain : Binance Smart Chain (BSC)
Supply : Unlimited, linear bonding curve
TEMPEST is an interest-bearing asset that can only be earned from SnowBank Vaults. It is distributed through a linear bonding curve. In a nutshell, bonding curves steadily increase the value of TEMPEST as more are issued. The underlying xBLZD-BUSD LP is farming in the xBLZD-BUSD pool, compounding the xBLZD emissions into more xBLZD-BUSD LP. This continuously generates interest for TEMPEST token holders.
The SnowBank applies a 10% tax on the first issuance of each TEMPEST token. It also applies this tax when anyone claims or sells TEMPEST tokens. This tax is then burned. Those tokens are permanently inaccessible, as they are sent to the burn address. Even though they are still a part of the total supply, they can no longer be redeemed for the underlying asset (xBLZD-BUSD LP).
Since every TEMPEST token MUST be backed by their value in xBLZD-BUSD LP, these burned tokens create a rising minimum price floor, since no one holds the private key to the burn address. They cannot be sold. Imagine the burn address as the ultimate diamond hand HODLer. You know it will never sell, but it holds and continues to earn interest for you.
The claim function allows any TEMPEST token holder to withdraw the accumulated interest. In order to do so, the token holder must sell the same dollar amount of TEMPEST back to the smart contract. The contract will then return the interest plus the xBLZD-BUSD LP amount from the sale after a 10% tax is taken out. The higher the price of TEMPEST tokens the fewer tokens are needed in order to redeem the accumulated interest.
Example — the protocol has generated 100 xBLZD-BUSD LP worth of interest over time. In order to redeem this interest, Jimmy needs to sell 100 xBLZD-BUSD LP worth of TEMPEST tokens back to the smart contract. The contract applies a 10% tax to the xBLZD-BUSD LP value of TEMPEST tokens (10 LP TOKENS) before sending the remaining 90 LP TOKENS to Jimmy. This 190 xBLZD-BUSD LP is the sum of the interest claimed (100 xBLZD-BUSD LP) and the $TEMPEST exchange value minus 10% tax (100–10 xBLZD-BUSD LP). Jimmy only sold 100 of his yielded tokens, but has nearly doubled his yield and collected 190 in that same time. This is the power of TEMPEST.
TEMPEST is good for the overall Blizzard ecosystem. Burning LP means that when we enter an emission-less world for xBLZD, we will have a cushion that helps us ensure that trading can still occur at a reasonable slippage.
The eventual use case of TEMPEST is still being developed. Current discussions in AMAs and chat involved staking your TEMPEST to earn a Ticket which can be used to enter a loss-less lottery, or used to open boxes containing NFTs. This is still under development.
There are many different ways a TEMPEST holder can profit. For example, waiting for the minimum price floor to increase, and then claiming the interest generated and selling their TEMPEST. The price of TEMPEST changes with the action of every participant, which creates a dynamic environment. The optimal strategy for a TEMPEST holder may change over time!
On other yield aggregators, deposited assets grow. While there is no compounding in SnowBank, the multiple assets that are returned are all earning interest as you hold them.
TEMPEST does not have a maximum supply. It can only be earned through the SnowBank Vaults. This is a good thing! The more the supply grows, the higher the value of TEMPEST will be.
TEMPEST tokens are issued according to a linear bonding curve. This means that their price = supply * multiplier. TEMPEST has a multiplier of 0.000001. So for every million tokens in existence, TEMPEST will be 1 xBLZD-BUSD LP more expensive. The same works in reverse. If TEMPEST supply is decreased by 1 million tokens, the price will also decrease by 1 xBLZD-BUSD LP.
No, you weren’t scammed. When you harvest from the Snow Bank Vault, your TEMPEST token will be sent directly to your wallet automatically. You may need to manually add the TEMPEST token address listed at the top of this page to your wallet as a custom token.
There is no DeFi protocol without risks, but we’ve taken special care to minimize this risk for investors. TEMPEST is integrated with our platform directly, and inherent risk in smart contracts will carry over to TEMPEST. This means that if our platform were to have an exploit or technical issue, the underlying asset (xBLZD-BUSD) being invested through SnowBank may be lost or unable to be recovered.
Anyone can list TEMPEST on an exchange. However, it does not make any sense to do this as liquidity providers would only be making revenue from trading fees, which would likely be very small.
Every TEMPEST token must be backed by xBLZD-BUSD LP. This is a requirement of the smart contract code. There will always be xBLZD-BUSD LP in the contract to buy TEMPEST back from SnowBank investors. When the smart contract issues or buys back TEMPEST, a 10% tax is applied. This creates the price floor, since this tax is used to buy back and burn TEMPEST. Remember, TEMPEST is not a typical asset that has its price set by a Liquidity Pool. It can only be earned and sold to the SnowBank.
Last modified 1yr ago