The SnowBank is an innovative self-sustaining yield farming platform that offers recursive farming through interest bearing assets. This means that not only are you farming for yields, your yields are farming for more yields! If this sounds complicated, that's okay. Keep reading and we'll cover everything you need to know.
The SnowBank allows you to double your earnings and yield through the use of interest bearing assets. Normally, when you enter a farm, you're given a yield token (such as CAKE) in return for staking your yields. While this is great, your CAKE typically just sits there until you either compound it, or move it to another farm.
Using a traditional farming method, if your CAKE yield goes down in price, your returns suffer. The SnowBank takes a new approach to this strategy, creating an innovative market-agnostic approach to yield farming. Instead of farming for an unstable asset, you're given GALE and autocompounded LP. GALE has a rising price floor, and is backed by BUSD. This clever method allows you to hedge your yields into an interest bearing stablecoin that goes up in value over the long term.
The real magic is the interest. Every GALE in existence is generating interest. You can claim this interest on the GALE page of our website. When you do this, you sell some of your tokens and receive the underlying assets, but also the bonus interest. This doubles the value of your tokens. Through these methods, you can effectively double your APR!
While the price of the tokens may fluctuate due to the bonding curve distribution model, the price floor only rises as tokens are created and sold. Because the creation and selling of GALE burn tokens, there's always going to be assets trapped in the strategy that can be redeemed. The more burned assets, the higher the price floor!
This raises an interesting dilemma: To double your yields, or HODL for the price floor increase? That is the question!