How to Invest in High Risk and High Rewards Snowbank DAO's SB token and Earn 384.5k% APR
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How to Invest in High Risk and High Rewards Snowbank DAO's SB token and Earn 384.5k% APR

By Charles Gune | cryptoguru | 24 Nov 2021


I will show you how to invest into Snowbank DAO's SB token and earn 384.5k APR. This is phenomenal return on investment for me with high risk and high rewards adventure.

What is a DAO?
What is a DAO is an organization that was designed to be automated and decentralized. It acted as a form of venture capital fund, based on open-source code and without a typical management structure or board of directors. To be fully decentralized, the DAO was unaffiliated with any particular nation-state or company.

What is Snowbank DAO?
Snowbank DAO is a decentralized reserve currency protocol that runs on top of Avalaunche Network based on Snowbank SB token. Each SB token is backed by basket of assets such as MIM, SB-AVAX Liquidity provider tokens in the Snowbank DAO treasury. It has intrinsic value based on underlying assets that backs it. This prevents them from falling in value as long as assets that backing them does not fall in value. Snowbank DAO allows staking and minting. SB can function as a global unit-of-account and medium-of-exchange currency.

How to Participate in Snowbank DAO
This DAO want to create price flatness for a representative basket of goods without the use of fiat currency in order for crypto industry to detach from the traditional finance. You can participate on Snowbank DAO by staking SB tokens or by being a minter who provides LP tokens or MIM tokens in exchange for discounted SB tokens after a fixed vesting period -- usually 5 days.

How to Benefit from Snowbank DAO
The main benefit for stakers comes from supply growth. The protocol mints new SB tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.

The main benefit for minters comes from price consistency. Minters commit a capital upfront and are promised a fixed return at a set point in time; that return is given in SB tokens and thus the minter's profit would depend on SB price when the minted SB matures. Taking this into consideration, minters benefit from a rising or static price for the SB token!

How to Buy Snowbank (SB) tokens
Go to TraderJoe.xyz's swap page.
Make sure you have setup Metamask Avalanche Network wallet setup. I will provide a link above on how to setup Metamask Web wallet.
Select MIM-SB pair for deepest liquidity
Select the SB amount you want to swap from. Click approve and sign the transaction with AVAX tokens. I am assuming you have AVAX to pay for Gas as well as AVAX to swap. It is recommended keep 0.2 AVAX in your account to pay for high gas fees you might experience during congested times on AVAX network.
You should see SB in your wallet balance after swap transaction is successful. You might want to add SB contract address to your wallet if you do not see the SB token. You only need to do Approve transaction only doing it for the first time. Subsequent swapping only requires "Swap" transaction.

How to Stake Snowbank (SB) Tokens
By staking your SB with Snowbank, you receive sSB (staked SB) in return at a 1:1 ratio. Your sSB balance will increase automatically on every epoch which is 8 hours based on current APY.
Here is how to stake SB tokens. Go to Stake page. As you can see on this shooting of the video, APR on staking is astronomically high 384.4k. Select the amount of SB that you would like to stake or press Max button if you want to sake all of SB tokens you just swap earlier.
Click approve and sign the transaction with AVAX gas. I paid less than $0.50 on gas fees. After the Metamask says transaction is succefully approved, Click Stake. If you do not see the Stake button, you might have to reload the page. Sign the transaction with AVAX gas. Now you have successfully staked SB tokens on Snowbank DAO.

How to Unstake
You go to Stake page and select Unstake tab. Enter amount you want to unstake and click Approve with AVAX gas. After Approve transaction has been processes click Unstake and sign with AVAX gas. That will complete the unstaking.

Risks and Mitigation
Minters are still happy if price remains flat; their profit is the discount from the bond. Like stakers, minters profit from inactivity at or around their buy price. Minters only lose when price goes down beyond the discount on the bond. Stakers care primarily about their SB balance. While price is important in valuing their SB and determining the rate at which it grows, it is not the main goal. A smart staker cares only about the short and long term growth prospects of the network. Contractions are triggered by short-term liquidity crises. Since SB holders have a guarantee that price will come back above intrinsic value eventually, the only sellers below should be those who need a short term exit and are willing to take the extra loss. I notice SB token price is wildly fluctuates between max of $5000 at release on November 8th to $1600 November 12th. This is a very risky investment given your capital fluctuates very violently. This is not investment advice. Give at the date of shooting this video, ROI in 5 days is 11, I would pull out the initial investment at this rate in 5/11.97 * 100 = 42 days. Pull it out into Stable coin and park it out. And let the rest keep staking and making money for you. All depends on SB token keep its value where you bought the coin at. If it drops, you will lose your principle.

Note: What I provide above is not investment advice.

Comment below if you need to discuss other topics or other DAO projects that you find very interesting. I am always looking for other interesting projects to cover. Do not forget to tip me! (it does not cost you anything!)

 

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Charles Gune
Charles Gune

I love anything about cryptocurrencies. I am avid follower of cryptocurrencies. I follow trends on crypto. I am small scale cryptocurrency miner with my private farm.


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