Onchain points

Overview

Onchain Points enable you to maintain a blockchain-based ERC-20 representation of any loyalty currency in Snag. When enabled, user point balances are automatically synchronized on-chain at configurable intervals, allowing your loyalty program to integrate seamlessly with smart contracts, DEXs, and other on-chain applications.

You have two ways to get started:

• Deploy New — Snag deploys a SnagHybridERC20 contract for you from your relayer address.
• Import Existing — Bring your own ERC-20 contract that already has batchAdminMint and batchAdminBurn functions. Snag verifies the relayer has the right permissions and then starts syncing.

How It Works

Snag's onchain points system uses a hybrid approach that combines the best of both worlds:

1. Off-chain tracking: User balances are tracked in Snag's high-performance database
2. Periodic synchronization: Balance changes are batched and synced on-chain at regular intervals
3. Efficient execution: Batch operations minimize gas costs and maximize throughput

Synchronization Process

Contract Requirements

Option 1: Deploy New (Recommended)

Select Deploy New in the onchain token modal and Snag will deploy a SnagHybridERC20 contract for you. This is a fully-featured, upgradeable ERC20 token optimized for loyalty programs:

• Batch operations: batchAdminMint and batchAdminBurn for efficient multi-user updates
• Permission system: Granular control over who can send/receive tokens
• Role-based access: Separate roles for balance updates, admin, and upgrades
• Upgradeable: UUPS proxy pattern for future enhancements

No extra setup is needed — Snag deploys the contract from your relayer address and configures all permissions automatically.

Option 2: Import Existing Contract

If you already have an ERC-20 contract deployed, you can import it by selecting Import Existing in the onchain token modal. Your contract must expose the following functions:

// Required functions for Snag integration
function batchAdminMint(address[] calldata to, uint256[] calldata amounts) external;
function batchAdminBurn(address[] calldata from, uint256[] calldata amounts) external;

Prerequisites

Before importing, you must grant your Snag relayer address the role that permits calling batchAdminMint and batchAdminBurn. You can find your relayer's EOA address in the relayer settings.

Verification Process

When you import a contract, Snag runs an automated verification to confirm everything is configured correctly:

Auto-detection

When importing, Snag will automatically read the contract's name() and symbol() functions and pre-fill those fields for you. If the contract doesn't expose name() or symbol() (some contracts don't), Snag falls back to the name and symbol of the loyalty currency you selected. You can always override either value before confirming.

Permissions & Security

To enable Snag to update balances on your token contract, the relayer must have permission to call the batch mint and burn functions.

Granting Permissions

• Deploy New: Permissions are configured automatically during deployment — no action required.
• Import Existing: You must grant your relayer address the appropriate role before importing. Your contract should implement role-based access control (such as OpenZeppelin's AccessControl).

For SnagHybridERC20, this is the BALANCE_UPDATER_ROLE. For custom contracts, grant whichever role allows calling your batchAdminMint and batchAdminBurn functions.

Key Management

Snag uses enterprise-grade security for private key management:

• GCP Cloud KMS: All private keys are stored in Google Cloud's Key Management Service
• Hardware Security Modules (HSM): Signing operations occur inside secure hardware enclaves
• No key exposure: Private keys never leave the cloud infrastructure

V2 Relayers Only

Onchain points are exclusively supported on V2 relayers, which provide enhanced security with GCP Cloud KMS integration and improved transaction management.

Gas & Funding

Relayer Funding

You are responsible for keeping your relayer funded with native tokens (ETH, MATIC, etc.) to pay for gas fees.

Fee Structure

Performance & Scalability

Snag's infrastructure is built to handle high-volume operations, supporting hundreds of thousands of accounts per sync cycle. The main constraint is the blockchain itself—specifically, one transaction per EOA per block.

Batching operations significantly improves both gas efficiency and throughput. Without batching, on-chain balances could never sync efficiently—each transaction would need to wait for the previous one to confirm.

Transaction Reliability

All transaction management—including nonce sequencing, gas estimation, and error handling—is handled automatically by the relayer service. If issues arise (such as insufficient funds or permission errors), you'll be notified to take corrective action.

Migration & Control

Taking Full Control

If you want to manage token minting yourself in the future:

Audits

• Smart contracts: Halborn is currently auditing our airdrop protocol; SnagHybridERC20 audit is expected to follow
• Infrastructure audit: Completed 4-week white box security audit by Anvil Secure's lead security researcher
• Regular audits: Both smart contracts and application infrastructure undergo periodic security reviews

Frequently Asked Questions

Next Steps