ParaSwap DAO

Abstract

The following proposal aims to streamline the current ParaBoost calculations following our analysis of the current underutilisation of the boost system, as well as clarify the scope of the Gas Refund Program relative to these changes.

By implementing these changes, a number of benefits are introduced to the system, including:

1. Increased accessibility to the staking system, thanks to its reduced complexity
2. Simplification of the distribution process, making it safer (less prone to errors), faster (less complex calculations), and less time-consuming
3. Flexibility for future possible iterations: automation of calculations, execution, verification, and new incentives.

Goals & review

Prior to the publishing of this proposal, a research thread was shared to provide the complete context of the effectiveness of the current paraboost system:

https://gov.paraswap.network/t/paraboost-retrospective-analysing-boost-usage-and-effectiveness-after-20-epochs/1796

The goals of this proposal are those shared in the final section of this research post, mainly the simplification of the boost system towards a system that removes the currently underutilized complexities. By executing these goals, the DAO opens the door for both new staking improvements and the possibility for easier automation and verification.

Means

Were this proposal to pass, the existing systems would be altered as follows:

• Revision of the Staking Score: The new staking formula can be summarised as: (Staked sePSP1 on the staker’s wallet) + (2.5 * PSP in sePSP2 on the staker’s wallet) * (Pooling boost relative on the number of epoch). All of the other boosts will be sunset to allow for more flexibility in future systems.

The staking boost will remain identical, with the following per-epoch criteria:

• Gas Refund Program: The gas refund program will now follow this new staking score formula and apply it only to trades done using the Augustus V6.2 and ParaSwap Delta contract sets.

Implementation Overview

The majority of these changes will be simply on the reward calculation duties that occur at the governance committee prior to distribution, such as the generation and verification of the data. As the Laita Labs team currently generates the distribution files, a change will be made in the internal code to account for this proposal and will share the new version of the calculations as soon as these changes are implemented.