ParaSwap DAO

Keywords

PSP 2.0, Gas Refund, PSP-EP

Simple Summary and Goals

As we get closer to the release of PSP 2.0, there are a few adjustments that have to be discussed before we can fully implement the new system. This express proposal seeks to address the issues relating to two aspects of the implementation: Gas Refund Program adjustment and the release epoch.

To address these issues, we propose the following:

• Introduce a new formula for the new ParaBoost-reliant Gas Refund calculation. This is set to fix the continuous gas refund formula to make it more compatible with the current refund levels.

  • The new formula is as follows: 0.152003ln(0.000517947x), where x corresponds to the ParaBoost score. The effective range of the formula will be from the minimum refund level of 25% to the maximum of 95%

• Approve the early conclusion of an epoch if PSP 2.0 is ready to release during an epoch, and distribute pro-rated rewards relative to the time elapsed during the epoch if needed.

Context I - Gas Refund Level Adjustments

Following the suggestion of another DAO member, one of the decisions of PSP 2.0 has been to make the gas refund levels continuous rather than the current discrete reward level system. This way, if you were, for example, between refund levels 1 and 2, you would receive a value between those as opposed to simply level 1. To do this, we used the following formula to get close to the levels stipulated in the refund table:

ABS(0.126506 * LN( 0.335487* [Total PSP Stake Value]+ 1.64295 )- 0.789135)

ParaBoost Score	Approximate Refund
10 000	24% (Min Refund Value)
100 000	52%
500 000	73%
1 000 000	82%
3 000 000	95% (Max Refund Value)

Figure 1: Approximate gas refund levels for the currently voted on formula for the new Socially Escrowed PSP system

While the current formula has close values for the first three levels (10k ParaBoost gives a 23.8% refund, 100k gives 53%, 500k gives 73.3%) the final level requires a significantly higher amount of more than 2.5 million PSP. This makes the formula unsuited for higher refund levels.

Instead of staying with the current formula, we propose to introduce the following similar one:

0.152003 ln(0.000517947x)

With this new formula, the refund values will be the following on the four desired levels:

ParaBoost Score	Approximate Refund
10 000	25% (Min Refund Value)
100 000	60%
500 000	85%
1 000 000	95% (max refund value)

Figure 2: Approximate gas refund levels using the new formula

Finally, to make sure the formula works as specified within the range of the previous proposal, we are setting an effective range from 25 to 95% refund levels.

Context II - Mid-Epoch release

With the release of PSP 2.0 fast approaching, we must also begin thinking about the possibility of releasing the new system during an existing epoch. While the ideal solution is to release it at the start of a new epoch if this target is not possible, there could be delays of up to two weeks as we wait for the epoch to be over before implementing PSP 2.0.

To avoid this situation from happening, we propose the possibility of ending an epoch early with a notice period of 3 days for an early termination, and distributing the smoother rewards proportionally to the amount of time elapsed during the epoch if needed.

Means and Implementation Overview

• Introduce a new adjusted formula to better fit the current values
• Shorten epoch length for PSP 2.0 release if needed
• Distribute pro-rated rewards

Voting Options

• For
• Against
• Abstain