ParaSwap DAO

Executive Summary

• ParaSwap’s recent launch on the Optimism network provides the perfect timing to showcase PSP 2.0 and its expanded capabilities on a new blockchain.
• Quest Terminal, a data-driven quest design platform by Rabbithole, offers a unique opportunity to bootstrap ParaSwap on Optimism.
• Sixdegree aims to leverage Quest Terminal to design compelling quests and incentive programs for ParaSwap.
• We are applying for a $30,000 grant to be dedicated to quest rewards.
• The primary objective is to foster sustainable organic growth for ParaSwap on Optimism by encouraging active participation and engagement.
• Continuous monitoring and community updates of quest data will demonstrate the positive impact of these initiatives.
• The iterative feedback loop based on quest data ensures effective alignment with the desired goals and objectives.

Background PSP 2.0 Upgrade PSP 2.0 is a major update to improve the tokenomics of PSP. It aims to create a more inclusive and rewarding experience for users and establish a sustainable distribution strategy. The update focuses on enhancing staking efficiency, liquidity, and token emissions. The new Social Escrow staking system for PSP (sePSP) is designed to incentivize PSP stakers for contributing to the protocol and DAO’s growth. Basically, it expands the idea of veNomics and rewards other socially-positive actions like liquidity pooling. These actions boost your stake, and in exchange you receive real yield in ETH. Rabbithole Quest Terminal Rabbithole is an incentive platform to bootstrap projects and networks, enjoying a great reputation in the crypto space. In May 2023, Rabbithole introduced the Quest Terminal, a cutting-edge platform that revolutionizes airdrop programs through high-velocity experiments called “quests”. This platform is designed to drive innovation and growth by enabling projects and token holders to engage in rapid and phased experimentation. The Quest Terminal provides an all-in-one on-chain solution for creating quests and distributing ERC20 tokens as micro rewards seamlessly and efficiently. With this platform, quest creators have the power to easily design and launch quests, allowing them to explore different approaches and iterate quickly. Moreover, the platform offers real-time metrics of quest performance, offering valuable insights into participant behavior. This data equips quest creators with the knowledge they need to make informed decisions, optimize quest designs, and maximize the impact of their experiments.

Motivation Recently, ParaSwap has been launched on Optimism, marking a significant milestone. This presents a golden opportunity to promote PSP 2.0 and highlight its release on a new blockchain network! We, Sixdegree Lab, are excited to offer our assistance in designing quests and incentive programs for ParaSwap on the Quest Terminal platform. Our aim is to facilitate the rapid growth of ParaSwap on Optimism and encourage the engagement of genuine users. We believe that utilizing Quest Terminal as a platform presents a unique opportunity to incentivize and educate users effectively. By leveraging its data-driven capabilities, we can swiftly iterate on quests and ensure that the incentives provided truly bring value to projects, all while avoiding the sole attraction of airdrop farmers. Sixdegree will take responsibility for designing weekly quests and monitoring associated data. We are looking forward to a sustainable way to make ParaSwap the top priority when swapping on Optimism. Additionally, we will provide regular blog updates to keep the community informed about the quest’s progress and the positive impact it delivers.

KPIs to Measure the Impact of Quests on ParaSwap

1. Increase in new user acquisition: Tracking the number of new users joining ParaSwap after the implementation of quests.
2. Trading volume growth on Optimism: Monitoring the increase in trading volume on the Optimism layer of ParaSwap, a direct result of the quests.
3. Staked PSP token amount: Measuring the growth in the amount of PSP tokens (both in sePSP1 and sePSP2) staked by users participating in quests, indicating the engagement level.
4. Socially-active behaviors: Observing an upward trend in socially-active behaviors related to quests, such as sharing quests on social media or discussing them in online communities.
5. User stickiness and loyalty: Assessing the enhancement of user stickiness and loyalty to ParaSwap, reflected in repeated usage and prolonged engagement with the platform.
6. User retention rate improvement: Evaluating the improvement in the retention rate of users who have participated in quests, indicating their satisfaction and continued interest in ParaSwap.

Proposed Budget

• We are seeking a grant of $30,000 in total from ParaSwap DAO to support quest rewarding on Quest Terminal.
• The requested funding is paid either 100% PSP or 50/50 OP + PSP.
• Quest Terminal requires a fee upon each quest completion. The fee is 20% per reward distributed to participants, equivalent to max $6k for 3-months.
• The grant funding will be fully utilized to run a series of quests over a period of 3 months.