Snowball Whitepaper

1. Introduction

Snowball is a decentralized finance (DeFi) protocol built on the Shibarium blockchain, designed to facilitate the creation and redemption of SNOW tokens through a unique multi-token deposit mechanism. By leveraging the power of smart contracts, Snowball enables users to mint SNOW tokens by depositing a basket of predefined tokens and redeem their deposits by burning SNOW tokens, fostering a seamless and efficient token ecosystem.

The protocol aims to provide a novel way for users to aggregate value from multiple tokens into a single asset (SNOW), which can be used for various DeFi applications, trading, or holding as a store of value.

2. Tokenomics

Name: Snow Ball

Symbol: SNOW

Decimals: 18

Maximum Supply: 500 Trillion SNOW (500,000,000,000,000 SNOW)

SNOW tokens are minted when users deposit a specific combination of 8 tokens in predefined amounts. The minting process generates 100 million SNOW per set of tokens deposited. Conversely, burning SNOW tokens allows users to redeem the underlying tokens in the same proportion.

The token supply is capped at 500 trillion SNOW, ensuring scarcity and preventing inflation beyond this limit. The total supply increases with each deposit and decreases with each withdrawal, maintaining a dynamic balance driven by user activity.

3. Core Mechanism

3.1 Deposit (Minting SNOW)

Users can mint SNOW tokens by depositing a set of 8 tokens in the following amounts per set:

30 WOOF
6,900 DAMN
100,000,000 FEED
6,900 WOW
10,000 SHIPA
100 LUISA
100,000,000 CHIKA
100,000 NONE

Each set deposited mints 100 million SNOW tokens. Users can deposit multiple sets in a single transaction, making the process efficient. The smart contract enforces strict checks on balances and allowances to ensure the integrity of the minting process.

3.2 Withdraw (Burning SNOW)

Users can burn SNOW tokens to redeem the underlying tokens. The amount of SNOW burned must be a multiple of 100 million (corresponding to one set). For each set burned, the user receives the exact amounts of the 8 tokens listed above. The contract ensures that the burned SNOW corresponds to the user's balance and that the contract has sufficient tokens to return.

4. Technical Details

The Snowball smart contract is deployed on the Shibarium blockchain, a layer-2 solution for Ethereum, offering low-cost and high-speed transactions. The contract address is:

0x2778f7E40D90DB18203Ec31C9c5F84fde6cf6763

The contract is written in Solidity (version ^0.8.0) and adheres to the ERC20 standard for the SNOW token, with additional functionality for multi-token deposits and withdrawals. Key features include:

Deposit Function: Allows users to deposit multiple sets of tokens in a single transaction, minting SNOW tokens proportionally.
Withdraw Function: Enables users to burn SNOW tokens and redeem the underlying tokens.
Balance and Allowance Checks: Ensures users have sufficient tokens and have approved the contract to transfer them.
Event Logging: Emits events for deposits, withdrawals, and token transfers for transparency and debugging.

5. Use Cases

Token Aggregation: Users can consolidate the value of multiple tokens into a single SNOW token, simplifying portfolio management.
DeFi Integration: SNOW tokens can be used in other DeFi protocols for lending, borrowing, or liquidity provision.
Speculative Trading: Traders can speculate on the combined value of the underlying tokens by holding or trading SNOW.
Community Incentives: Projects can use SNOW as a reward token, backed by a basket of community-supported tokens.

6. Roadmap

Q2 2025 - Launch

Deploy the Snowball smart contract on Shibarium and launch the initial version of the dApp for token minting and burning.

Q3 2025 - Community Engagement

Partner with Shibarium ecosystem projects to integrate SNOW tokens into their platforms and build a community of users.

Q4 2025 - Feature Expansion

Introduce staking mechanisms for SNOW holders and explore cross-chain compatibility with other layer-2 solutions.

Q1 2026 - Governance

Implement a decentralized governance model, allowing SNOW holders to vote on protocol upgrades and token basket adjustments.

7. Risks and Mitigations

Market Volatility: The value of SNOW is tied to the underlying tokens, which may fluctuate. Mitigation: Users are encouraged to assess the market before minting or burning SNOW.

8. Conclusion

Snowball introduces an innovative approach to token aggregation on the Shibarium blockchain, enabling users to mint and burn SNOW tokens with a basket of 8 underlying tokens. With a capped supply, secure smart contract, and a vision for DeFi integration, Snowball aims to become a key player in the Shibarium ecosystem. Join us in rolling the snowball of decentralized finance!