⁉️General FAQs

Frequently Asked Questions & Answers

1. What does dynamic nest expansion (DNE) mean?

Dynamic Nest Expansionary epochs are something new to Snake Finance. We function on a dynamic system in which the expansion is dynamic depending on several factors such as the TWAP of $SNAKE, price of $gSNAKE, amount of $gSNAKE staked in the boardroom & more. During an expansionary epoch, staked gSNAKE tokens mint new $SNAKE, increasing its circulating supply. If the price of $SNAKE is above its target peg - 1.01 S -, the algorithm expands supply to bring it back to equilibrium. However

2. Understanding Snake Finance's Peg Stability Module (PSM)?

1. What is PSM? Peg Stability Module (PSM) is a fee mechanism that strengthens $SNAKE's peg to $S by creating a direct link between $gSNAKE rewards and stable asset backing.

2. How it Works (Simple Example):

• User wants to claim 1 $gSNAKE (worth 1000 $S)

• PSM requires a fee payment of $300 in $S

Process:

• User pays 300 $S

• Treasury receives and holds the $S

• User receives their 1 $gSNAKE, worth 1000 $S

1. Why it Matters: • Creates real backing for $SNAKE using $S • Builds treasury reserves organically • Strengthens the peg through actual asset backing • Reduces reliance on emissions alone

2. Future Evolution: • PSM is a temporary mechanism • Will be adjusted/removed once:

   • $SNAKE-$S gauge is live

   • $gSNAKE-$S gauge is active

   • Liquidity deepens sufficiently

3. Key Difference from Traditional Models: Traditional: Rely solely on market forces Snake's PSM: Active fee capture → Real stable backing → Stronger peg

3. Are the Boardroom rewards pro-rated by time?

No. Boardroom rewards depend solely on the amount of staked $gSNAKE tokens and not when they were staked during the epoch. Whether staked 3 hours or 30 seconds before epoch emissions, the reward remains the same.

4. What happens If $SNAKE continues climbing above the price of the peg ?

Yes. If the price of $SNAKE remains high, the Nest has a dynamic expansion rate in which the higher the peg, the larger the expansion rate, the lower the peg, the lower the expansion rate. NOTE: A portion of $SNAKE allocate more $SNAKE to the Treasury.

5. Why can't I claim on The Nest?

Depositing $gSNAKE or claiming $SNAKE rewards onto the Nest triggers lock resets: - gSNAKE withdraw locked for 4 epochs - SNAKE harvest locked for 2 epochs - Rewards Burn timer reset to 48 hours

6. Why do my rewards burn in the Nest?

Snake Finance prioritizes long-term stability over short-term high yields. By being able to adjust expansion rates based on revenue, we encourage users to provide liquidity rather than just rely on single-token staking, which strengthens the protocol's sustainability. We've also added a new mechanism in which rewards not claimed after 48 hours are burned to increase engagement and attachment with the protocol.

7. What will happen when circulating supply = Total supply? Will emissions stop?

Yes. Once the maximum supply of $gSNAKE is reached, emissions stop. However, Snake Finance's vision is to become a platform that boosts rewards for users on Shadow Exchange, in turn, users who deposit to earn $gSNAKE will have the underlying LP deposited into the gauge for Shadow generating fees for the treasury via $xSHADOW Nest rewards will continue as long as $SNAKE remains above the peg. Plans include expanding DAO funds and enabling LP providers to earn rewards in ve3,3 DEXes across the ecosystem.

8. What is an epoch?

An epoch in the Snake Finance ecosystem is a 6-hour period in which the total supply of $SNAKE is adjusted. The token price is monitored to determine if a supply expansion or contraction is needed. Governance proposals can also be raised and voted on during this time.