Chain : Binance Smart Chain (BSC)
Supply : Unlimited, linear bonding curve
GALE 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 GALE as more are issued. The underlying BUSD backing GALE is invested throughout other BSC ecosystem projects to continuously generate interest for GALE token holders.
The SnowBank applies a 3% tax on the first issuance of each GALE token. It also applies this tax when anyone claims or sells GALE tokens. This tax is then used to buy back and burn GALE. 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 (BUSD).
Since every GALE token MUST be backed by their value in BUSD, 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.
Gale Supply and Price Dynamics
The claim function allows any GALE token holder to withdraw the accumulated interest. In order to do so, the token holder must sell the same dollar amount of GALE back to the smart contract. The contract will then return the interest plus the BUSD amount from the sale after a 3% tax is taken out. The higher the price of GALE tokens the fewer tokens are needed in order to redeem the accumulated interest.
Example — the protocol has generated 100 BUSD of interest over time. In order to redeem this interest, Jimmy needs to sell 100 BUSD worth of GALE tokens back to the smart contract. The contract applies a 3% tax to the BUSD value of GALE tokens (3 BUSD) before sending the remaining 197 BUSD to Jimmy. This 197 BUSD is the sum of the interest claimed (100 BUSD) and the $GALE exchange value minus 3% tax (100–3 BUSD).
There are many different ways a GALE holder can profit. For example, waiting for the minimum price floor to increase, and then claiming the interest generated and selling their GALE. The price of GALE changes with the action of every participant, which creates a dynamic environment. The optimal strategy for a GALE 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.
GALE 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 GALE will be.
GALE tokens are issued according to a linear bonding curve. This means that their price = supply * multiplier. GALE has a multiplier of 0.000001. So for every million tokens in existence, GALE will be 1 BUSD more expensive. The same works in reverse. If GALE supply is decreased by 1 million tokens, the price will also decrease by 1 BUSD.
No, you weren’t scammed. When you harvest from the Snow Bank Vault, your GALE token will be sent directly to your wallet automatically. You may need to manually add the GALE 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. GALE is integrated with other third-party protocols for its functionality. Risks in these protocols will carry over to GALE. This means that if these projects ever have an exploit or technical issue, the underlying asset (BUSD) being invested through SnowBank may be lost or unable to be recovered.
Anyone can list GALE 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 GALE token must be backed by BUSD. This is a requirement of the smart contract code. There will always be BUSD in the contract to buy GALE back from SnowBank investors. When the smart contract issues or buys back GALE, a 3% tax is applied. This creates the price floor, since this tax is used to buy back and burn GALE. Remember, GALE is not a typical asset that has its price set by a Liquidity Pool. It can only be earned and sold to the SnowBank.