> For the complete documentation index, see [llms.txt](https://docs.snowballfi.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.snowballfi.app/documentation/usdsnow-rises.md).
# $SNOW Rises
Every action in the Snowball Protocol β minting, burning, borrowing, and leveraging β feeds value back into the system. The result is a self-reinforcing loop where backing per `$SNOW` can only increase.
### ποΈ Backing Boost Loop
* Minting or burning `$SNOW` incurs a 2.5% fee\
β 65% of that fee is added to `$AVAX` backing
* Borrowing `$AVAX` against `$SNOW` incurs upfront interest\
β That interest goes directly to the `$AVAX` treasury
* Loan defaults result in `$SNOW` being burned\
β Supply shrinks β Backing per `$SNOW` increases
* Staking and PoL farming generate external yield (via bribes and fees)\
β Rewards are recycled to grow `$AVAX` backing or amplify future emissions
***
### π§ A Sustainable Yield Loop
The protocol doesnβt print emissions. Instead, it generates yield through real protocol activity:
* New users minting and burning
* Borrowers paying interest
* Leveraged users looping
* Liquidations reducing supply
Incentives for liquidity providers are funded through protocol revenue, and boosted further by external bribes on ve(3,3) DEXs like [Pharaoh](https://pharaoh.exchange/) and [Blackhole](https://blackhole.xyz/).
{% hint style="warning" %}
$SNOW is designed to be up-only in $AVAX terms, not USD. If $AVAX dumps, $SNOW's USD price may drop β but its backing per token will still go up.
{% endhint %}
---
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