Your Step-by-Step Guide on How to Use Snowball Protocol

As the DeFi landscape continues to expand, the Avalanche ecosystem is making waves, showcasing remarkable growth with milestones like the $180M AvalancheRush incentive program. In the heart of this ecosystem lies Snowball—an innovative Automated Market Maker (AMM) decentralized exchange (DEX) on the Avalanche blockchain, designed to make the world of decentralized finance more accessible and rewarding for everyone. So, how can you take advantage of this burgeoning platform? Let’s dive into the details.

What is Snowball?

Snowball is a decentralized finance (DeFi) protocol that harnesses the advanced technology of the Avalanche blockchain to facilitate seamless trading, yield farming, and liquidity provision. Its architecture is competitive with similar projects on other blockchain platforms, ensuring that it offers users a unique and efficient experience. With services such as stablecoin trading through StableVault and the compounding feature via SnowGlobes, Snowball empowers users to maximize their returns in a dynamic market.

For instance, the StableVault service is tailored for trading stablecoins, providing users with competitive exchange rates and minimal slippage compared to traditional market alternatives. Additionally, by staking SNOB tokens, users not only earn rewards in the form of xSNOB but also gain governance voting rights, contributing to the future of the platform.

Getting Started with Snowball

Prerequisites for Trading on Snowball

Before you jump into trading on Snowball, there are a few preparatory steps to ensure a smooth experience:

1. Download Coin98 Wallet: If you haven’t already, you need to install the Coin98 Mobile Wallet to manage your assets securely. For the browser version, you can download the Coin98 Extension Wallet from the Chrome Web Store.

2. Create an Avalanche Wallet: You can either create a new AVAX-C-ARC20 wallet or import an existing wallet. This is essential as Snowball operates on the Avalanche blockchain.

3. Transfer AVAX for Gas Fees: Make sure you have AVAX (C-Chain) tokens in your wallet since this is required for gas fees on the Avalanche network. You can purchase AVAX on centralized exchanges (CEXs) such as Binance or Coinbase and transfer them to your Coin98 Wallet.

Connecting to Snowball

Once your wallet is set up and funded, you can easily connect it to the Snowball platform.

1. Access Snowball: Navigate to the Snowball.network website.
2. Click Connect: You’ll find this option in the top-right corner of the homepage.
3. Choose Your Wallet: Select either Metamask or Coin98 Extension Wallet for connection. Enter your password and grant access.

After these steps, you should see your Wallet Address displayed, signaling that you’re ready to explore the offerings of the Snowball platform.

Trading on Snowball

Trading Stablecoins with StableVault

Trading stablecoins on Snowball is simple and can be done in a few quick steps:

1. Select StableVault: From the main interface, click on StableVault and choose the s4D Vault, a pool consisting of DAI.e, FRAX, TUSD, and USDT.e.
2. Choose Your Token Pair: For instance, if you want to trade TUSD for USDT.e, select TUSD from the drop-down menu and specify the amount you wish to trade.
3. Adjust Slippage Settings: You can set your preferred Max Slippage to ensure your trade executes under acceptable conditions.
4. Confirm Your Swap: Review all details and proceed by clicking Swap. Finalize the transaction by confirming in the Coin98 Extension Wallet pop-up.

Adding Liquidity

By adding liquidity to StableVault, you not only support the platform but also earn a share of trading fees along with SNOB rewards. Here’s how to add liquidity:

1. Go to Liquidity Section: Click on the Liquidity tab.
2. Enter Your Contribution: Specify how much you want to deposit. You can choose any combination of the tokens in the pool.
3. Receive Receipt Tokens: After confirming your deposit, you’ll receive s4D receipt tokens, representing your share.
4. Confirm the Transaction: Don’t forget to approve the transaction in your Coin98 Wallet.

Utilizing Compound & Earn

One of the standout features of Snowball is the Compound & Earn option, allowing you to reinvest your rewards from other platforms:

1. Select Compound & Earn: Click on the corresponding section.
2. Choose Your Pair: For example, if you want to invest in the PGN-AVAX pair, you’ll first need to add liquidity.
3. Connect Your Wallet: Approve the pairing of your Coin98 Extension Wallet with the website.
4. Supply Tokens: Enter the amount of liquidity you wish to provide and confirm the transaction.
5. Deposit Your Tokens: After supplying, navigate back to the Compound & Earn section to deposit your tokens and confirm the transaction.

Staking SNOB Tokens

For those looking to participate in governance or earn xSNOB rewards, staking is a fantastic option.

1. Navigate to Staking: Click on the Staking tab.
2. Specify Your Amount: Enter how much SNOB you wish to stake.
3. Choose Your Lock Period: Remember, longer staking yields higher xSNOB rewards.
4. Approve the Transaction: Confirm in your Coin98 Wallet pop-up window.

Frequently Asked Questions (FAQs)

Is Snowball safe?

Snowball protocols are primarily forked from audited projects, and all of its lines of code are publicly available on GitHub. While this provides a level of security, it’s essential to remain vigilant, as newer unaudited codes may present risks.

What additional products does Snowball offer?

Aside from its DeFi services, Snowball has recently launched an NFT Shop, which allows users to trade exclusive winter collectibles and capitalize on the NFT trend. Note that you’ll require an Ethereum wallet to access most NFT products.

Where can users buy SNOB tokens?

You can acquire Snowball (SNOB) tokens through Coin98 Exchange or decentralized exchanges on the Avalanche network, like Pangolin and Trader Joe.

Conclusion

Congratulations! You’ve just navigated the intricacies of using Snowball on the Avalanche blockchain. This powerful and user-friendly platform can significantly enhance your DeFi experience. If you have any questions or need further assistance, don’t hesitate to reach out in the comments or join the Coin98 Community for discussions surrounding cryptocurrency and beyond. Happy trading!