Let me start off my saying I’ve never seen a rug pull happen before, but after hearing about them a lot recently, I’ve been a little paranoid about new DeFi projects that have anonymous teams. I found this article explaining what red flags to look for and I feel like there’s a few of them with this project. The project is a fork of Pickle.Finance and their team on GitHub has a lot of the same team members. It looks like the news coverage of the Pickle.Finance hack (or “hack”?) is mixed, but this article calls it a DeFi exit scam where $19.8 million was lost. Do we know for sure that we can’t get left bag holding sPGL while someone runs off with our PGL? I’m not very knowledgeable on the technical aspects of this project, so I was hoping someone with a deeper understanding of it could chime in. I really like the idea behind Snowball, but I’m feeling hesitant with this one.
I understand and partially share your concerns. That’s why I won’t put most of my money in their smart-contracts. If they were audited, I would, but right now I consider it too risky.
Hello. I work on Snowball. Always do your own research when using and investing in DeFi.
Snowball has the following credibility
- 2nd largest DeFi project on Avalanche
- One of the first auto-compounder DeFi projects (started early March)
- First Avalanche native token (SNOB) to recieve a rewards pool on Pangolin Exchange
- Compounding contracts forked from Pickle Finance. Stablecoin AMM contracts forked from Saddle Finance
- Partnered with major projects like Frax Finance
For user safety, we have the following processes:
- MultiSig wallet with 5 participants. 3/5 wallets need to confirm changes. No single person has access to Treasury fund or Governance funds
- Community driven governance. Monetary changes are decided by voting, not by the team
The code is one aspect of verifying a projects credibility. Another aspect is looking at how active and involved they are within the greater ecosystem. If you dig a bit deeper, you’ll find that Snowball has a very good reputation in Avalanche DeFi.
Thank you for your answer. It is true that Snowball has a great reputation in the community.
Are there any plans for code audit? If not, why?
Yes, we are getting funds for an audit right now. Took a while because audits are very expensive (20k+)
I wasn’t aware of how expensive they were. Which auditors are you contemplating?
Have asked for quotes and timelines from a few, will let you know which one we decide on!
Can confirm that Snowball has a multisig for their team. That’s generally the first thing you want to look out for on new projects is whether all the money is controlled by one owner. That’s a huge red flag.
Snowball have their own multisig and all my interactions with them have been fantastic. Not financial advice and obviously DYOR.
Disclaimer: I hold SNOB and will continue to HODL.
Thank you for your response. I really like how engaged the team is on these forums and I think the branding & everything you guys are doing is awesome. I’d like to invest, but I guess my main concern is that Pickle.Finance was hacked literally the day after their audit and they claimed that the code in the exploit was added right after the audit was performed. It just seems a hard to believe that something like that happened the day after the code was supposedly audited. I’ve seen people on reddit claim that the exploit was much simpler than it was made out to be and another on the forums called it a “simple jar swap.” Perhaps they were talking out their ass and they weren’t actually familiar with the code, but it’s hard to tell where the truth lies.
Were you on the Pickle.Finance team with the others or did you join after they forked it for Snowball? Maybe someone could shed some light on the audit and who it was that actually performed it. If anyone would know about an exploit, I’d think the person that audited it would be the number 1 suspect. $20M is a large chunk of change to go missing.