Project Miró
A DAO for Beyond Swaps
ParaSwap is among the leading DEX Aggregators, and we believe it is time to expand well beyond that. Following our recent all-time high in volume, we want to leverage this leading position to expand beyond just aggregation, expanding our mission to strengthen both ParaSwap as a product and the scope of a DAO as the home of intent-centric trading. We are codenaming this roadmap of upgrades Project Miró.
With our planned set of upgrades, we want to introduce a new engine of trade execution powered by Intents, moving well beyond the limitations we currently have. At the moment, ParaSwap engages only in a form of market swaps, but with the expansions of Project Miró we wish to cover a full Intent trading suite, bringing all the options of traditional centralized finance into DeFi with no compromises to user experience.
As the mission of ParaSwap will change significantly following this, we want every DAO participant to have a say on the next steps of Project Miró. Our current roadmap will not only unlock more sources of volume and revenue, but additional utility for the DAO’s token. All of this, combined with our active drive for community growth and marketing, marks a new charter for the future of ParaSwap and its DAO.
A proposal for Scope Expansion, Marketing Drive, and More
The main mission of ParaSwap as a DEX Aggregator has been to provide the best possible rates across different paths. For the early days of DeFi, this has served as a great solution for single-chain efficiency, but the time has arrived to look past the horizons of aggregation and expand beyond to a brand new scope.
With the release of Delta V2, our core protocol has allowed us to evolve past an aggregation protocol into an Intent-powered engine, leading to a fundamental overhaul of what ParaSwap is. With the introduction of agents, pricing and end-user experience are not limited to a single algorithm but instead to a competition for the best prices in a trustless and secure manner. Additionally, the ability to have anyone onboarded for order execution also brings us from a single point of failure to an antifragile, modular, and decentralized environment in which anyone can participate.
ParaSwap can expand from the niche of aggregation to fundamentally Intent-centric trading. Rather than just offering token swaps, our new Intent-based space expands possibilities as far as any decentralized agent is willing to take them, all while being completely chain agnostic. We are now ready to build a trading experience with all of the convenience of traditional finance, but the unstoppable and modular nature of DeFi.
Simply put, ParaSwap DAO is not just ParaSwap anymore but a community that will be in charge of building way beyond aggregation. To prepare the DAO for such a fundamental change, this roadmap introduces a proposed set of changes, codenamed Project Miró.
We propose a trifold roadmap aimed not just at the next steps of our mission but also at leveraging what we have learned from our DAO so far. We propose a plan for a new token and migration strategy to demonstrate this new horizon of possibilities beyond aggregation. To allow everyone in web3 to become aware of this major development, we propose a dedicated effort into not just marketing, but ensuring that whatever new governance token comes to be is listed in the appropriate centralized exchanges. Finally, we propose a revamped strategy for the DAO to ensure optimal growth and maintenance of the new protocol.
Everyone in the DAO’s community is invited to participate in the conversation, which will be happening alongside the mission of other DAO members to optimize governance operations. We look forward to your thoughts and to seeing what comes next.
A new token for the DAO
The core token of ParaSwap DAO is $PSP, and due to the nature of ERC-20 contracts, its name and qualities cannot be easily upgraded. We propose to migrate the governance token from PSP to a new token, with its name still pending (see next section for more details). All holders of PSP will have the opportunity to migrate to the new system and use this new token to participate in future decisions. The PSP migration will be carried out in consultation with local counsel to ensure that it complies with all local law requirements through the Foundation.
In addition to allowing for rediscussing the allocation of the tokens and migration mechanisms, this also allows for a different implementation of the tokens, such as xERC20 or ERC-7802 (or SuperchainERC20). This could help resolve the liquidity problems seen with PSP on chains such as BSC and Polygon, as the cross-chain standard would allow for these tokens to still be easy to swap and then bridge to the desired chain of custody.
Token Strategy and Allocation Overview
Following the migration of the new token, we propose an allocation strategy going forward, which can be summarised as follows:
This allocation has been planned to maintain the maximum allocation equivalence between the new token and the existing distribution of $PSP. As of the time of writing, 37% of the supply (or 741M) has not been distributed to users yet, while the remaining 63% is already distributed.
Based on this, we propose allocating 63% of the new supply towards migration to the new token to also account for potential additional distributions since the beginning of this project. The remaining amount will be DAO-facilitated or Foundation-facilitated allocations and will be assigned different categories to maximize the impact of Project Miró.
PSP Migration
As this is an evolution of the PSP token, 63% of the supply will be allocated to the conversion from PSP to the new token. We propose a migration contract from the new system to the other that supports the transition for both token holders and stakers. More information is shared in the ‘Migration and Community rewards’ section.
Foundation Facilitated Allocation
To assist with some of Project Miro’s core objectives, we propose that the ParaSwap Foundation facilitate part of the allocation towards set objectives on behalf of the objectives set at the DAO level in this proposal.
- Growth (Marketing, Liquidity, Listing, and BD): 10% to community awareness, marketing, and growth. To allow for strategic flexibility, the Foundation will decide internally how to split between the use cases under the following ranges:
- Centralized Exchange Listing: between 3 and 7%.
- Marketing, Growth, Business Development, and Liquidity Provision: between 5 and 10%.
- Strategic Investments: 5% to facilitate key investments in the ecosystem, allowing sophisticated actors to be onboarded.
- DAO Operations and Service Providers: 5% to be dedicated specifically to the necessary operations of the DAO and its service providers. This includes automations, potential toolings, and other governance contributors. The Foundation will facilitate these funds to the DAO and serve as a point of accountability at the point of delivery.
To ensure that the Foundation adheres to the allocation’s stated purposes and facilitate communications with the DAO, we propose that the Foundation produce a bi-annual transparency report on its initiatives advancing Project Miró since the last report was shared.
DAO-Facilitated Allocation
This portion of the allocation will be directly managed by the DAO and its governance approval process. As DAOs are best suited for transparent decision-making and community-sourced wisdom, the main allocations that it should be responsible for have to be on community building and rewarding.
The total allocation of 15% will be separated into three different types of incentives:
- Retro funding: 3% to reward tangible impacts made on the ecosystem, following objectives set by the DAO
- Proto funding: 4% to the development of future initiatives that will support the growth of the ecosystem.
- User incentives: 5% for end-user incentives and any initiatives that will help build awareness of the ecosystem.
- Migration incentive: 5% for 3 months. The unallocated funds should then be reallocated to the Foundation facilitated Growth category.
Migration and Community Rewards
Although migrating unstaked tokens will be straightforward, we also wish to ensure that all community members who have supported our DAO until now are empowered even more for these next steps. This can be accomplished in many ways, and we would like to hear from the community about which options would be the most beneficial.
Firstly, sePSP2 stakers should be rewarded greater than unstaked PSP. Special incentives should be deployed during migration to reward long-term and aligned community members. Regarding sePSP1, we would like to ask the community for their opinion, as based on the feedback we have received, it would be better to encourage consolidation of staked versions into liquidity-based tokens, while the voting-only version could be on the governance token itself.
As a considerable amount of the supply will be dedicated to the migration, a time window must be specified for when the swap will be valid. This window could be generous (for example, 12 to 18 months), and once closed, the unused rewards could be either reallocated to the migrators or facilitated by the Foundation later.
Listing, Marketing, and Growth Supply for Miró
One of the most common suggestions following the launch of ParaSwap DAO has been the possibility of allocating a portion of the supply for growth-based ventures, such as listing on centralized exchanges and marketing initiatives. In the past, these have been challenging to do at a DAO level, and as such, we propose dedicating a part of the initial supply to building momentum from DAO one.
We propose using 10% of the allocated supply specifically for growth efforts. This includes visual branding, market making, marketing, and centralized exchange listing. The ParaSwap Foundation will coordinate this effort.
Retrofunding and ProtoFunding
The vision of Project Miró extends the scope of the DAO into an extensive ecosystem of Intents-powered trading projects, some working completely in parallel with each other. Because of this, we believe that rather than taking inspiration from one-project DAOs, we should take inspiration from existing governance protocols from rollups, as they also must allocate resources among different projects, all building on the same space.
We propose for the DAO to have control of two funding tools going forward, one focussed on past accomplished impact, while another focused on future-facing possibilities:
- Retrofunding: Reward efforts in growth, development, and technical advancements for the new ecosystem. With retrofunding, the DAO can set objectives that they believe are most important during a set period and reward the projects that best accomplish these goals afterward.
- Protofunding: Despite the proven positive impact of retrofunding, this funding mechanism can lead to a significant gap from the creation of a new project to a noticeable impact happening. This is why we propose introducing protofunding, where potential integrations to the ecosystem can request funds for growth and development.
Unlike existing incentives and grants programs, one addition we wanted to propose going forward is the compulsory participation of recipients in the governance ecosystem. Current funding mechanisms incentivize projects to receive the funding and then head back to further development. Having projects actively participate or delegate a set amount of their funding will not only give them a voice in future decisions but also allow for a more cohesive community for the intents ecosystem.
In terms of who we want to handle the funding decisions, this is where we invite the community for further discussion. Outside of token voting, many new distribution mechanisms have come up recently to maximize efficiency, from one-project-one mode systems to quadratic funding, we are open to discussing the best way to advance.
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