SNOWY Token Utility

SNOWY is the protocol utility token (on Avalanche) that also rewards its holders with 100% of generated protocol fee revenue.

The AVAX token is deposited into the protocol when a user mints fAVAX token, while the SNOWY token which is used for minting is burned. When the user redeems fAVAX tokens, the protocol pays back AVAX tokens and mints the required amount of SNOWY tokens.

The ratio of AVAX and SNOWY tokens used by the minting and redeeming function of the Fantastic protocol is determined by the Collateral Ratio. These mechanisms are described with examples in more details in the next pages of our documentation.

Token Utility

AVAX and SNOWY Revenue

Each minting and redeeming of synthetic assets like fAVAX on Fantasm incurs a 0.30% and 0.50% fee, respectively. These fees are distributed as AVAX and SNOWY dividends to users who lock their SNOWY on the platform.

Capital Efficiency

The capital required to mint fAVAX is only partially denominated in AVAX. The remaining portion is denominated in SNOWY, which is required as collateral. This requirement creates both a natural demand for SNOWY, as well as captures value.

New Fantastic Synthetic Assets (Roadmap milestone)

Equals more utility and liquidity for SNOWY token holders because SNOWY will always be a key ingredient in minting synthetic tokens.

DeFi Integrations (Roadmap milestone) Adoption and integration of Fantastic synthetic assets with other DeFi projects to develop and unlock new trading strategies (derivatives trading, leveraged trading/farming, other exotics)

Early Exit Penalty Revenue Besides AVAX and SNOWY revenue for users who stake their SNOWY, stakers also earn 50% of the penalty fee from SNOWY/AVAX and stable pool farmers who claim their rewards early.