ParaSwap DAO

Abstract:

The following proposal aims to introduce the new token established in the Project Miro roadmap to Base. In addition, this proposal also aims to introduce the staking system to Base as well as to assist with liquidity provision on Base, as well as participation in staking rewards.

To offer a rapid migration to this new chain, we propose for the Laita team to develop a cross-chain migration facilitation tool which will assist existing stakers to move their staked assets from Optimism and Mainnet to Base if they would like to do so. This will also serve as a great showcase of the power of the intent-based systems we are moving forward with beyond aggregation.

We believe that the deployment of MIro to Base will help align the new token not only with a rapidly growing ecosystem, but also strengthen the ecosystem of ParaSwap DAO across rollups.

Goals & Review:

With the introduction of a new token deployment as defined in project Miro, the DAO has the opportunity to implement upgrades which are more feasible during the token introduction phase. One of these upgrades concerns the networks that the token and its staking system are deployed in. For example, the PSP token was only deployed in Ethereum Mainnet during its initial release, with Optimism Mainnet being introduced afterwards in 2022 with less overall TVL.

As there will already be a migration happening during the PSP to the new token migration, we believe that this is a great opportunity to expand to a new low-gas rollup while also building liquidity with it through the Balancer-based staking token we currently know as sePSP2. This proposal proposes to expand the staking system to Base. We believe Base has many features that make it the most sensible choice for the third network of deployment, including:

1. Highest growth in activity and TVL among the Ethereum layer 2 networks in the past year.
2. Presence of ParaSwap Delta.
3. Integration with the superchain ecosystem along with Optimism Mainnet, one of the other chains the token is deployed in.

By deploying to Base during the project Miro migration, not only do we wish to enter a growing DeFi ecosystem, but also provide stakers with more alternatives for ecosystem participation outside of Ethereum mainnet.

Means:

Other than the approval of the DAO for the new token deployment in Miro , a successful deployment will require enough liquidity to be able to have liquid onboarding of the token. We believe that, were we to require existing stakers to manually move to the new chain, we would not reach enough momentum, which is why Laita is willing to assist with the migration procedure to Base. This, along with the migration incentives of Project Miro, should be sufficient to bootstrap sufficient liquidity.

While the staking distribution system will remain mostly unchanged in this proposal, one potential limitation we have noticed comes from the current way to calculate the claiming chain of rewards. With three chains, the current method of splitting rewards relative to the staking chain has the risk of splitting the rewards across multiple chains, bringing UX issues. For this reason, we also wish to change the claiming method from rewarding rewards relative to the chain to giving all rewards on the chain with the highest amount staked.

Implementation Overview:

1. Introduction of the new token and its staking mechanisms on Base.

2. Overall, the networks that the new token will be deployed in will be Ethereum mainnet, Optimism and Base

3. Development of a cross-chain migration facilitation mechanism by the Laita team for stakers of Ethereum and Optimism to move to Base.

4. Alter the chain distribution criteria, from sending rewards relative to the amount of each chain to sending all rewards to the chain where the user is staking the most.

Time of Implementation:

If passed, the following proposal will be implemented along with Project Miro’s new token release and migration , which we currently aim to deploy in late Q1/ early Q2.

Budget:

In total, Laita Labs wishes to request to the DAO a total of $40 000 USD, denominated in non-PSP assets – such as ETH and FTM currently leftover in the treasury- at the time of execution, and secured by the ParaSwap Foundation. This budget includes the cost for the migrator smart contract audit and development, as well as the migration gas execution costs. By onboarding the execution costs, end-users will not have to spend gas when using this module, reducing the burden to migrate and showcasing the benefits of intent-based execution.

The migration execution gas will be covered until either the migration budget runs out, or when the three-month migration window passes, whichever one comes first. Were the migration gas execution budget to run out, the DAO will have the option of approving an additional one.

Any unused budget - such as unused gas execution budget - will be returned to the DAO after the three-month migration window passes.

Risk Assessment:

The largest risk of this proposal comes from the upcoming migration assistance development. By auditing the module and testing internally prior to release, Laita Labs will work on minimising the risk of this new module.