Stake Pools & Depositing
SnowSwap offers multiple single-asset pools as well as the SNOW-ETH Uniswap pool, Rudolph's Pool.
- Incentivize inflow of liquidity
- Attract new users to the platform
- Create liquidity for future integrations
In an effort to incentivise long-term holders of SNOW, SnowSwap launched Frosty’s SNOW pool which receives 15% of all rewards.
Additionally, in order to incentivize the inflow of liquidity, we added single-asset pools for each of the SnowSwap LP tokens:
- ySnow — Jack Frost’s Pool
- ycrvSnow — Santa Claus’ Pool
- btcSnow —Cupid's Pool
- fSnow - Donner's Pool
- crvethSnow - Night King's Pool
SnowSwap liquidity providers can easily stake their LP tokens at the same time by clicking the “Deposit and Stake” button on the deposit page.
Additional pools may be added by Snow DAO governance vote.
First, it's important to understand that you don't have to deposit all coins, you can deposit one or several of the coins in the pool and it won't affect your returns. Depositing the coin with the smallest share in the pool will result in a small deposit bonus.
Second, once you deposit one coin, it gets split over the four different coins in the pool which means you now have exposure to all of them, so you want to find a pool with coins you are comfortable holding. The first checkbox (Add all coins in a balanced proportion) allows you to deposit all coins in the same proportion they currently are in the pool. It requires you to own positions in all the coins.
Sometimes, one asset is quite low in the pool. If you are depositing coins that the pool is currently lacking, you can get an additional bonus. The main reason for this is that this asset is currently slightly more expensive so if you went to a centralised exchange you might sell it for a little bit higher. The deposit bonus reflects that. The other reason behind this is that the pools are always trying to balance themselves and go back to equal parts so depositing the coin with the lowest share will get you a deposit bonus. When you withdraw, the same principle applies (but reversed). If you withdraw the coin with the biggest share, you would get a bonus but you still choose what coin you want to withdraw.
Turning off the "Deposit wrapped" option (coming soon) allows you to directly deposit tokens that have not been previously wrapped (on yEarn Finance or other websites). If you are depositing normal wrapped coins, you can ignore this option.
If you don't want to add all your coins, just un-select the "Use maximum amount of coins available" checkbox and enter the number of coins you wish to deposit and click "Deposit and Stake". You will then be prompted to confirm multiple transactions.
You will then be asked to approve the Snow contract, followed by a deposit transaction which will wrap your stable coins and deposit them into the matching pool. This transaction can be expensive so you ideally want to wait for gas to be fairly cheap if this will impact the size of your deposit.
After depositing in the pool, you receive liquidity provider (LP) tokens. They represent your share of ownership in the pool and you will need them to stake for SNOW. If you deposit and stake at the same time, you will then be prompted with a new transaction that will deposit your LP tokens in the appropriate pool. Confirming the transaction will let you liquidity mine SNOW, the governance token. (You can check and claim SNOW later from the Staking page.)
After staking your LP tokens, you're providing liquidity so all that's left to do is wait for your SNOW to accrue.
The trading fees stay in the pool and are shared with liquidity providers when they withdraw their LP tokens. So by providing liquidity, you also will earn a proportional portion of the trading fees.
SNOW Governance Token
Uniswap Liquidity Provider UNI LP V2