Champion SNEK - cpSNEK
Overcollateralized Champion-escrowed $SNEK & $veSNEK (SOLISNEK DEX - AVALANCHE chain)
$SNEK is the native token of Solisnek Finance, a revolutionary decentralized exchange (DEX) and automatic market maker (AMM) that has been built upon the original Solidly vision, and has now been brought to the Avalanche blockchain.
It rewards holders with a share of the platform's revenues and also acts as a governance token for its weekly pool incentives gauge. $SNEK has a decaying emissions model.
Users can stake and lock their $SNEK tokens onthe Dex for a fixed period between 1 week and 1 year, to receive a vote escrow NFT ("veNFT"), which is used to record the amount of $veSNEK held by the user.
$veSNEK holders receive five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $SNEK emissions distributed to platform liquidity providers;
- weekly $veSNEK distribution (rebase);
- boosted APR for the Liquidity they owned.
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
$veSNEK positions can be merged, and sold on the secondary market. $veSNEK time lock period can be extended.
The amount held by a given user decreases steadily to zero as the lock period moves towards its completion. Weekly rebase is to safeguard $veSNEK holders from dilution and to enable a dynamic distribution of $veSNEK among participants over time, the anti-dilution level has been capped at 20%;
$cpSNEK is an Overcollateralized Champion-escrowed version of $SNEK & $veSNEK staked for $cpSNEK to take advantage of the various benefits offered to Solisnek stakers.
You can mint $cpSNEK on the $cpSNEK page at a fix ratio of 1 :1 from $veSNEK.
Remember to reset vote of your $veSNEK
You will not able to redeem $cpSNEK to $veSNEK or $SNEK
There will be incentivised liquidity for $cpSNEK LP.
When $cpSNEK value fall down below 85% of the $SNEK value (peg <0.85), the contract will not allow to mint more $cpSNEK from $veSNEK.
User can mint $SNEK to $cpSNEK via smart route in the $cpSNEK page. When $cpSNEK is above peg, $SNEK will be used to directly mint mint $cpSNEK at a 1:1 ratio. When $cpSNEK is below peg, $SNEK will be used to directly buy $cpSNEK in the $cpSNEK liquidity pool.
Burning mechanism of $cpSNEK is based on the 1% transaction fee/tax including buy/sell/add & remove liquidity
Transaction fee/tax allocation:
- 50% of the fee/tax will go to Champion Treasury and become permanent voting power of Champion.
- 50% of the fee/tax will go to Avalanche chain's dead wallet, and the $SNEK back for those $cpSNEK will be permanently locked in the contract, permanently out of circulating supply.
From the begining of the contract, $cpSNEK token is fully backed 1:1 by $SNEK.
By the time, with the burning mechanism, when user buy/sell/add & remove liquidity of $cpSNEK and generate fee, half of the fee $cpSNEK will be sent to dead wallet and permanently out of circulating. The back ratio of $cpSNEK will be above 1:1 by $SNEK and $cpSNEK in the contract will become over-collateralized.
The more volume of $cpSNEK --> the more fee is generated--> the more backed ratio of $SNEK is--> the more overcollateralized $cpSNEK is.
When you mint $cpSNEK, the contract will immediately try to stake and lock the deposited $SNEK or merge the deposoted $veSNEK into the contract's $veSNEK with maximum locking time of 1 years.
Once the contract's $SNEK is staked and locked into $veSNEK, it receives five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $SNEK emissions distributed to platform liquidity providers;
- weekly $veSNEK distribution (rebase);
- fee from booster APR of the Liquidity providers;
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
As the $cpSNEK contract perpetually re-locks its $SNEK deposits, it always strives for the maximum amount of voting power and benefits.
Earned trading fees, bribes and rebase are regularly harvested, swapped for $cpSNEK & $SNEK and will be used to bribes $cpSNEK Pool on SOLISNEK.
Once you're holding $cpSNEK, you can create $cpSNEK LP and stake into SOLISNEK dex to earn more $SNEK.
Where our $cpSNEK contract earns trading fees, rebase and bribes by deploying its $veSNEK on the protocol, those protocol revenues are swapped back to $cpSNEK and use to bribes for $cpSNEK Pool. This maximises the yield for holders above what they could obtain alone from the protocol.
Champion strives to maintain some of the lowest yield-optimizing fees, and charges standard fees on its $cpSNEK optimizer.
Total of 6% perfomance fee, including:
- $Cham staker : 2.5%
- CF Treasury: 3%
- Contract strategist: 0.5%
Lets detail 3 levels of $cpSNEK peg:
Peg Level | $cpSNEK Peg | Recommendation/Market reaction |
|---|---|---|
1 | Peg > 1.0 |
|
2 | 0.85 < Peg < 1.0 |
|
3 | Peg < 0.85 |
|
$cpSNEK will healthily maintain peg at Level 2 (0.85 < Peg < 1.0).
No. All $SNEK voting power will be used by Champion to vote in the weekly liquidity pool incentives gauge.
Votes will typically be directed either to the liquidity pools offering the most in trading fees and bribes, or to the liquidity pools which support our $cpSNEK token.
The $cpSNEK contract will harvest all trading fees, rebase and bribes from the protocol and swap those for more $cpSNEK to bribes for the next epoch on SOLISNEK. Voting on SOLISNEK's incentivised liquidity pools takes place on its web app.
- If you want liquidity for your $veSNEK to farming more yield and/or to be able to sell to fiat in emergency case.
- If you do not have enough time to do the vote yourself
- If you do not want to provide Liquidity on Solisnek but still want to enjoy the boosted APR effect.
- If you want to enjoy "the eighth wonder of the world" - auto-compounding
Then wrappers and optimizers are there for you.
$cpSNEK is one of the solutions.
There are some reasons:
- Protocols with vote-escrowed model normally see wrappers as the exist liquidity for their vote-escrowed tokens.
- All the wrappers and their investors are facing some main difficulties: Losing its peg for the peg model or Drained out its reserve for the reserve model
$cpSNEK is built to solve it and bring a win-win-win relationship to investors, vote-escrowed protocols and Champion
- For investors: with burning mechanism, boosted APR fee, and overcollateralized model, $cpSNEK can maintain a sustainable & high peg value & APR
- For vote-escrowed protocols: Bring constant buy pressure on dex rewards token and with the overcollateralized model, $cpSNEK help to permanently remove certain quantity of $SNEK tokens from circulating supply.
- For Champion: Treasury will generate permanent voting power, maintain a long-term revenue.
$cpSNEK is not the perfect solution, as it can be lost peg and user need to form liquidity in order to take advantage on farming APR.
Last modified 5mo ago