SnowballX Protocol

Executive Summary

SnowballX Protocol combines Small Business PE(high-value, cash-flowing assets from first world countries) with US Treasury and invesment grade bonds.

The protocol is constructed around three core smart contracts: RWAProtocol, SNB Staking Protocol, and SNT Distributor. These are supported by five distinct tokens, each playing a crucial role in the ecosystem: SNB, SNT, NFT, vSNB, and RWAProtocol Token. The integration of these elements forms a seamless interface for users to engage with the protocol.

The RWA Protocol allows users to stake USDT, securing a non-transferable SNB token and an NFT that represents an upfront interest rate with defined terms. Upon maturity, these can be redeemed for USDT with added interest, fostering an environment for stable growth. To complement this, the RWAProtocol token can be staked in the SNT Rewarder contract, earning additional SNT rewards and enhancing the overall yield.

The SNT Rewarder is the distributive mechanism of the SNT token within the protocol, rewarding users for their participation and investment in the ecosystem.

The SNB Staking contract introduces a mechanism where SNB tokens can be staked to receive vSNB tokens at a 1:1 ratio, further integrating users into the SnowballX ecosystem.

In terms of tokenomics, the SNB token is designed to be non-transferrable, with the exception of its interaction with the SNT Rewarder. NFTs, while transferable, are restricted to a whitelist to maintain compliance. SNT and vSNB tokens are standard ERC-20 tokens with transferable properties and staking capabilities. The RWA protocol token follows suit, being an ERC-20 token with additional functionalities.

SnowballX Protocol is initially supported on Binance Smart Chain (BSC), Polygon, and has plans to extend support to the Sei network once its EVM chain is operational.

RWA Protocol

RWAProtocol.stake(address SNB)

1. The user stakes USDT to the protocol
2. The user's USDT is locked for a certain time period, in return, they receive a non-transferrable SNB token
3. The user will receive an up front interest rate NFT(ERC404) that can be transferred. This NFT has metadata indicating an expiration date, a principal amount, and an interest rate. After the expiration date passes, the user will be able to burn the NFT and redeem the interest rate from the RWA Protocol.
4. The user also gets a RWA protocol token that can be staked into the SNT Rewarder contract for SNT rewards.
5. (Optional) The user can also burn SNT tokens on this step for higher yields

RWAProtocol.withdrawSNB(address SNB)

The user must wait for their snb to unlock

1. The user burns 1 SNT
2. The user burns their SNB and receives 1:1 USDT for each SNB
3. The user burns their RWA pool token

RWAProtocol.withdrawNFT(address SNB)

1. The user burns 1 SNT
2. The user burns their NFT and receives USDT equivalent to the principal amount * interest rate

RWAProtocol.depositUSDT()

1. The owner can deposit USDT.

RWAProtocol.withdrawUSDT()

1. The owner(Snowballx), can withdraw USDT.

SNT Rewarder

This contract distributes SNT.

SNTRewarder.stake()

1. The user sends in the RWA pool token

SNTRewarder.withdraw()

1. The user withdraws their RWA pool token and receives rewards

SNTRewarder.claim()

1. The user claims their pending SNT tokens.

SNB Staking

SNBStaking.stake()

1. The user stakes SNB tokens and receives vSNB at a 1:1 ratio

SNBStaking.unstake()

1. The user burns 1 SNT token
2. The user burns vSNB tokens and receives SNB

Tokens

SNB Token: The SNB token should be non-transferrable, except to the SNT Rewarder

NFT: The NFT should ideally be an ERC404, but an ERC-721 nft should also suffice if I cannot find an ERC404 token that is safe. NFTs can only be transferred to a whitelisted group of compliant addresses.

SNT Token: ERC-20 token, transferrable.

vSNB Token: ERC-20, transferrable, can be staked into the SNT Rewarder for SNT

RWA protocol token: ERC-20 token, transferrable, can be staked into SNT Rewarder for SNT tokens

Supported Chains

BSC
Polygon
Sei can be supported as soon as they launch their EVM chain into production

Pricing

Baseline Price: 23000 USDC and 1% of total token supply with 12 months lockup

With ERC404 Integration: 7500 USDC

ERC-404 is an experimental, mixed ERC-20 / ERC-721 implementation with native liquidity and fractionalization.

This additional add on will swap out the NFT and replace it with the ERC-404 standard. Users would then be able to trade with the ERC404 standard, both via tokens and NFTs

With Gnosis Safe Integration: 5000 USDC

Gnosis Safe will be used instead of a private key as the owner and upgrader of these contracts.

Gnosis Safe is a non-custodial, multisig crypto wallet that provides enhanced security features for managing digital assets. Gnosis Safe has held over 90 billion in user assets.

Key Features:
Multi-Platform Access: Accessible on web browsers, desktops, and mobile devices.
Enhanced Security: Utilizes a multi-signature mechanism requiring multiple approvals for transactions.
Flexible Transaction Policies: Allows users to set up policies like "2 of 3" signatures for added security.

Security Measures:
Protection Against Key Compromise: Even if one private key is compromised, unauthorized transactions are prevented.
Formal Verification: Ensures accuracy and authenticity of transactions.
No Single Point of Control: Distributed ownership prevents a single entity from controlling all funds.

With a turnaround time of 10 days: 5000 USDC

I believe this will take 20 days, since I have other commitments in addition to this one. However, I can push other commitments back.

With Continued Support Post Deployment: Price on Request

I have scoped this project, and I believe the current project can be fit into my working schedule. However, I am not sure how much bandwidth I have going forward for continued support.

Contract Details

Total Cost: 40500 USD
45% upfront, 45% after protocol completion, 10% after audit completion

Turn around time 10 days from payment received date

Account Number: 392001076
Routing Number: 021000021

ACH Routing Number: 322271627