SNB Whitepaper
Overview
SNB is a decentralized DeFi infrastructure protocol built on BNB Chain, designed to provide sustainable liquidity incentives and transparent on-chain reward distribution. Unlike yield-driven systems that rely on aggressive inflation or fixed APY promises, SNB adopts a deterministic and contract-enforced incentive model. All core logic, including token supply constraints, reward distribution, and referral incentives, is executed entirely on-chain. The protocol prioritizes long-term value alignment between liquidity providers, protocol participants, and the underlying token economy, while minimizing governance complexity and discretionary intervention.
Token Architecture
SNB is a BEP-20 compliant token with a fixed total supply of 100,000,000 SNB. No additional minting is possible after deployment, ensuring strict supply predictability. Protocol-related fee logic is implemented directly at the token contract level and is triggered only during predefined protocol-aligned on-chain interactions, such as liquidity operations or system-defined executions. Standard peer-to-peer transfers between wallets are not subject to additional fees. All fee rules are immutable and enforced entirely on-chain, ensuring that protocol value flows remain transparent, verifiable, and resistant to off-chain control or manual intervention.
Token Economics & Fee Flow
All protocol-generated fees are routed to the Fee Distributor contract. These fees originate exclusively from predefined protocol interactions and are not derived from arbitrary token transfers. The Fee Distributor allocates collected value across liquidity incentives, reward distribution mechanisms, referral incentives, and other system-aligned components. This design ensures that protocol revenue is recycled back into the ecosystem in a deterministic manner, without relying on inflationary emissions or discretionary redistribution.
Liquidity & Zap Design
Liquidity can be added to SNB pools either manually or through the SNB Zap contract. The Zap mechanism abstracts complex multi-step liquidity provision into a single on-chain transaction, automatically converting assets and adding liquidity on behalf of the user. This reduces friction, minimizes user error, and improves capital efficiency. All Zap operations are executed fully on-chain and interact directly with underlying liquidity pools, without custody or off-chain execution.
LP Mining Mechanism
Liquidity providers can stake LP tokens to earn SNB rewards through the LP Mining contract. Rewards are distributed linearly over time based on stake proportion and duration. There is no fixed APY, and reward rates dynamically reflect actual protocol activity. This model avoids unsustainable yield promises and mitigates short-term speculative behavior, aligning incentives toward long-term liquidity participation.
Referral Incentive System
SNB includes an optional on-chain referral system designed to incentivize organic user growth. Each address may bind a single referrer, and referral relationships are immutable once set. Referral rewards are derived exclusively from protocol-generated fees rather than token inflation. This structure discourages referral abuse while maintaining transparent and verifiable reward attribution on-chain.
Risk Disclosure
Participation in DeFi protocols involves inherent risks, including but not limited to smart contract vulnerabilities, market volatility, and liquidity risks. While SNB’s contracts are designed to minimize discretionary control and enforce deterministic behavior, no system can be considered entirely risk-free. Users should assess their own risk tolerance and conduct independent evaluation before interacting with the protocol.
Protocol Architecture
SNB is designed as a modular, on-chain protocol composed of multiple specialized contracts, each with clearly defined responsibilities. At the core of the system is the SNB token contract, which defines immutable supply constraints and protocol-level fee rules applied only to specific execution paths. Surrounding it are auxiliary contracts responsible for liquidity zapping, LP mining, fee distribution, and referral tracking. All contracts interact through explicit and permissioned interfaces. Ordinary wallet-to-wallet transfers are not affected by protocol fee logic, ensuring predictable and user-friendly token behavior. This modular architecture minimizes systemic risk, improves auditability, and prioritizes long-term protocol resilience over short-term feature density.
Fee Flow & Value Recycling
All economic value within the SNB protocol originates from real, protocol-defined on-chain activity. Fees are generated exclusively during specific protocol interactions and routed to the Fee Distributor contract. These fees are not abstract emissions or algorithmic rewards, but concrete value derived from usage. From there, value is redistributed to liquidity providers, mining participants, and referral incentives according to immutable contract rules. SNB does not guarantee fixed yields, ensuring that incentives scale naturally with protocol adoption. By recycling usage-derived value back into contributors, SNB establishes a closed-loop economic system without reliance on continuous external inflows.
Incentive Alignment
SNB is designed around the principle that long-term protocol health depends on aligned incentives rather than maximum participation. Liquidity providers, miners, and referrers share the same underlying fee pool, directly linking rewards to protocol usage. There are no artificially boosted APYs, unlimited emissions, or preferential treatment for early participants. The protocol favors quality of participation over quantity, aligning incentives toward sustained engagement.
Governance Philosophy
SNB intentionally minimizes governance complexity. Core economic parameters are embedded directly into smart contracts and are not subject to frequent modification. This reduces governance attack surfaces and provides predictable protocol behavior. Any future governance mechanisms, if introduced, will focus on extending functionality rather than altering foundational economic rules. In SNB, governance is treated as a responsibility, not a feature.
Upgrade Path & Future Scope
Core token economics, fee mechanisms, and distribution logic are intended to remain stable and immutable. Future development will focus on adding new modules or integrations that interact with the existing system without altering its core assumptions. SNB aims to remain a reliable, composable building block within the broader decentralized finance ecosystem.
Ownership & Control
SNB Protocol is designed with a progressive decentralization model. During the initial deployment phase, limited owner privileges exist solely for parameter calibration and risk mitigation. Once the protocol reaches operational stability, all owner privileges will be permanently renounced on-chain, making SNB a fully autonomous and non-custodial system. All ownership changes are transparent and verifiable via on-chain transactions.