Compounding FAQ
All our compounding strategies can be found on the Compound & Earn page of our website. You can also find a list of all strategies under the Compounding Contracts page of our documentation.
Snowball takes a 10% performance fee on all profits made through auto-compounding. This happens once every harvest. There are no deposit or withdrawal fees.
Snowball’s compounding strategies use code that has been forked from Pickle Finance, which has been audited. However, we still recommend using the protocol with caution as any new code may not have been fully audited. You can review our code on the Snowball GitHub.
To learn about how auto-compounding works with Snowball, visit the Compounding page of our documentation. For a step by step guide on how to use Snowball’s auto-compounding page, view our compounding guides.
Once you’ve deposited tokens into a compounding strategy on Snowball, you will automatically start to earn SNOB rewards if the pool you deposited into has been voted on to receive rewards. SNOB rewards are determined by each pool's gauges.
Rewards from our compounding strategies are compounded / re-invested 2-3 times a day. Feel free to check the #harvests channel on our Discord Server to see updates each time this takes place.
All APR and APY values displayed on Snowball have already taken into account our performance fee. What you see is what you get, always.
If a pool you've deposited into is deprecated (no longer in use) it will not be displayed on our website. But do not worry, your funds are safe. Check out our guides here on how to withdraw them.
There is no liquidation risk for any of Snowball's strategies. This is because on our folding strategies, you are borrowing the same token you are providing as collateral, and Snowball is constantly re-investing your rewards, so your borrowed amount will never surpass 100% of your collateral's value.
If the single-asset strategy you are deposited into involves folding, your balance will slowly decrease due to borrowing costs until a harvest occurs. When this takes place, Snowball is selling the rewards you've accumulated for your original underlying asset, and your balance will increase by a value much higher than what it decreased by previously. At the moment, these harvests take place 2-3 times a day and can be tracked through the #harvests channel on our Discord server.
The APRs displayed on each strategy on our site are updated every 10 minutes.
When possible, Snowball's strategies employ folding strategies. These allow us to achieve much higher rates on single-asset strategies that just lending your assets normally. To learn more about folding, check out our explanation here or head to our DeFi University.
Once SNOB emissions end, rewards will continue to be rolled out through buyback functionalities similar to proposal 14’s. Of course, there can be any change to the systems behind SNOB rewards if the community deems it necessary, in which case a proposal will be put in place for us all to vote on together.
Harvest may not occur in certain circumstances, such as during rapid spikes in gas prices. Since we compound so often though, any changes to strategy profitability should be negligible.
While these stats are currently not displayed on Snowball's dashboard - they will be in the near future. Until then, keeping track of how much you've deposited initially is the easiest way to calculate this. Simply subtract that amount from what you currently have on Snowball, regardless of what type of token it is.
If you haven't kept track, you can check your transaction history through a block explorer by inputting your wallet address. Some tools are available to help in that regard, so don't hesitate to reach out to us on Discord if you need help.
The most likely scenario is that you've withdrawn your LP tokens to your wallet - these are Liquidity Provider tokens from platforms such as Trader Joe or Pangolin, where you initially made your deposit. In order to convert those into your original tokens you'll have to go to their platforms and withdraw your liquidity. You should be able to see and withdraw your liquidity on the 'Pools' tab of either one.
Zappers work through automatically making most of the transactions needed for depositing into our many compounding strategies. These are the same transactions you would be making manually otherwise, but faster and more gas-efficient. All tokens received through such transactions go to your wallet or our strategy on your behalf. No protocol fee is taken for this service. Read more about this functionality in our article here.
Optimized Pools work by daily re-allocating funds to whichever platform has the best yield at the time. Of course this means only utilizing the best battle-tested dapps on Avalanche, to ensure users' safety. Learn more about these pools in our article here.
Last modified 1yr ago