FOXNODES
The aim of nodes is to create a strong incentive for long term holding of FOX and several other coins through the use of a locked staked high earning pool. The pool requires users to spend 50 FOX to create a node that in turn delivers daily FOX rewards back to the user at an estimated initial rate of 1.5-3% daily delivering passive yield in an asset pegged to a stablecoin. This will reward long term holders with a higher yield than the single stake FOX pool and in turn lock up a portion of the FOX supply helping to reduce market sell pressure on FOX.
FOX Node details
50 FOX cost per node
Unlimited nodes per account
Estimated 1.5-3% daily FOX rewards paid (tapering figure), based on node pool balance
Up to a max 500% ROI on each node (adjustable figure), however like any investment it is not possible to guarantee 500% ROI per node
Each week the account that created the most nodes earns 5 FOXSHARE
Each node created will give entry to new giveaways weeky.
10% of the FOX is sent to the treasury where we can either burn it if under peg or sell for LP while above.
Disclaimer & Risks
Note that investing in DeFi products is experimental and risky, there is no guaranteed return on any product or investment. By using SnowyOwl Finance, you agree that the SnowyOwl Finance team is not responsible for any financial losses from investing in SnowyOwl Finance nor do we promise any returns now or in the future. Nodes are highly experimental locked staking pools and the total amount of rewards that can be paid are determined by a number of factors including the number of nodes created, the TWAP expansion rates of the protocol and the performance of investments made by the treasury.
What is a node?
Users may be familiar with the concept of validator nodes which as the name suggest validate transactions on a blockchain, in most blockchain networks these validators are rewarded for their efforts with native tokens. FOXNODES are not transaction validator nodes however they follow this concept of rewarding locked stakers with FOX rewards for their efforts.
Users deposit FOX to purchase a node which in turn deposits a portion of that into a reward pool that drips daily rewards back to all node holders thereby granting a passive income in return for locking up your FOX. The remaining FOX is sent to the treasury and used to increase protocol sustainability through several mechanisms depending on TWAP including adding to the FOX-JOE LP and/or investing in other protocols to generate a non protocol specific income that can be used to directly support the system. Our node operates in a similar manner to the many well known investment type node projects in existence such as Project x and Vapornodes.
Strategy
Please check our strategy info graphic to ensure you are using rewards to not only benefit your own nodes but also the projects longevity.
Sustainability
Nodes often suffer from sustainability issues due to their tokens having no other purpose than simply as a reward token for selling, this too is an issue for algorithmic stable coin protocols. At SnowyOwl Finance adding strong utility to FOX is something we have focused on so far through unique yielding opportunities with partner protocols and soon through our lending and borrowing platform. In order to ensure our FOXNODES are sustainable and achieve their intended outcome we take inspiration from EMP Money's successful implementation.
ROI Caps & reward rates
This includes implementing mechanisms such as a maximum cap on total ROI that is possible to receive from a single node (currently 500%) and tweaking of the daily return rate to maintain a sweet spot of 1.5-3% so it remains above the returns available for single staking FOX but not such that it reduces the benefit locked staking will have for the protocol. There is no limit to the number of nodes someone can own however the more you own the greater your daily yield back in FOX. Please note that this maximum cap is not your guaranteed return from each node it is your maximum possible return from each node, it is not possible to guarantee a return in DeFi or investing.
Future Nodes
Using our initial FOXNODES as a prototype implementation we intend to implement several more node pools in the near future to multiply the benefits for our protocol. Below are several other node pools we intend to implement shortly after the Grape system launches:
FOXSHARE-JOE LP Shares node (Treasury percentage of FOXSHARE will be burnt to create a permanent deflationary mechanism for FOXSHARE)
SNO-JOE LP node (Below peg the treasury percentage of LP will be split and used to buy back and burn GRAPE)
Possibly a JOE node or SNO/FOX (A portion of this JOE will be used to directly market buy SNO when below peg)
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