How SnowMind Works

SnowMind is built around three layers: a web app for user interaction, an optimization engine for yield decisions, and on-chain smart accounts for fund custody.

System Architecture

┌──────────────────────────────────────────────────────┐
│  WEB APP                                             │
│  Authentication → ZeroDev Smart Account → Dashboard  │
└────────────────────┬─────────────────────────────────┘
                     │ HTTPS
┌────────────────────▼─────────────────────────────────┐
│  OPTIMIZATION ENGINE                                 │
│  Rate Fetcher → Allocator → Rebalancer → Executor    │
└────────────────────┬─────────────────────────────────┘
                     │ ERC-4337 UserOperations
┌────────────────────▼─────────────────────────────────┐
│  AVALANCHE C-CHAIN                                   │
│  ZeroDev Kernel v3.1 Smart Accounts                  │
│  Pimlico Paymaster (gas sponsoring)                  │
│  Whitelisted Lending & Yield Adapters                │
└──────────────────────────────────────────────────────┘

Web App

The web app handles user-facing interactions:

Authentication: Wallet connect, email, and social login
Smart account creation: ZeroDev Kernel v3.1 (ERC-4337 + ERC-7579)
Session key grant: Scoped permissions signed by the user
Dashboard: Real-time portfolio view, allocation breakdown, and rebalance history

Optimization Engine

The backend optimization engine orchestrates the entire yield optimization loop:

Rate Fetcher: Reads on-chain APY from each protocol every 30 minutes
TWAP Smoothing: Applies 15-minute time-weighted averaging to prevent spot-rate manipulation
Cross-Validation: Compares on-chain rates against DefiLlama's yield API
Optimizer: Ranks protocols by APY and allocates capital optimally
Rebalancer: Builds ERC-4337 UserOperations for withdrawals and deposits
Executor: Signs UserOps with the session key and submits via Pimlico bundler

On-Chain

All fund custody happens on Avalanche C-Chain through ERC-4337 smart accounts:

ZeroDev Kernel v3.1: Smart account with modular validators and executors
Pimlico Paymaster: Sponsors gas for all rebalancing transactions (free to users)
Protocol interactions: Direct supply/withdraw via approved protocol adapters

The Rebalancing Loop

Every 30 minutes, the backend runs the following loop for each account:

Fetch current APY from all active protocols
Smooth rates with TWAP and cross-validate against DefiLlama
Run the optimizer to compute the optimal allocation
Check if the rebalance meets all safety gates (see below)
If approved, build and execute a batch UserOperation

Rebalance Safety Gates

A rebalance only executes when all conditions are met: total movement exceeds $1, APY improvement exceeds 0.1%, daily yield gain exceeds gas cost, at least 6 hours since last rebalance, and no rate anomalies detected.

Fee Model

SnowMind is currently free to use. There are no deposit fees, no management fees, no performance fees, and gas costs are sponsored. You keep 100% of the yield you earn.

Key Design Decisions

Yield optimizer: Ranks protocols by APY and allocates capital to maximize your blended yield — transparent, auditable, and deterministic.
ZeroDev Kernel v3.1: Native ERC-7579 modular smart accounts with EntryPoint v0.7 and 6M+ accounts deployed in production.
Avalanche-native: Gas costs are significantly lower than on Ethereum, allowing the agent to rebalance even when APY improvements are relatively small.
Non-custodial by design: Session keys enforce supply/withdraw-only permissions at the EVM level. Even a fully compromised backend cannot steal funds.