Uses of SnowSwap
Imagine you have USDC deposited into yEarn’s yUSDC vault but you notice you could be earning a higher yield using yDAI. You could pay the gas required for all the transactions to withdraw your USDC, convert it to DAI, and then re-deposit your DAI into Yearn or you could save yourself the hassle and use SnowSwap. SnowSwap's yVault USD pool allows users to easily enter and exit yVaults and other yield bearing tokens for only the gas cost of a swap fee. Increasing liquidity for similar yield-bearing tokens makes it easier for users to speculate on their yield or performance. Our first pools, yVault USD (yDAI, yUSDC, yUSDT, yTUSD) and yVault Curve (yUSD, ybCRV), were focused on yield-bearing stablecoin tokens.
We then went even further and introduced a new pool called eth2SNOW designed to incentivize ETH2 adoption. One of the problems of ETH2 staking is the 18-24 month commitment before staked ETH can be transferred or withdrawn. Providers like STKR by ANKR and LIDO have attempted to provide liquidity by issuing derivative tokens to represent ones tokens locked in staking. However, how can one swap between these platforms or back to regular ETH?
Instead of swapping assets in the pools, one can provide liquidity to the pools to earn SNOW. SNOW can also be staked to earn more SNOW.
SNOW holders are able to participate in the governance of the SnowSwap platform using the Snow DAO.