SNOWY is the protocol utility token (on Avalanche) that also rewards its holders with 100% of generated protocol fee revenue. The AVAX token is deposited into the protocol when a user mints fAVAX token, while the SNOWY token which is used for minting is burned. When the user redeems fAVAX tokens, the protocol pays back AVAX tokens and mints the required amount of SNOWY tokens. The ratio of AVAX and SNOWY tokens used by the minting and redeeming function of the Fantastic protocol is determined by the Collateral Ratio. These mechanisms are described with examples in more details in the next pages of our documentation.

Fantastic Protocol is a DeFi project aimed at developing and popularizing synthetic tokens for multiple L1 Ecosystems. Imagine having exposure to the price of FTM or AVAX token without actually owning it.