PSP-EPΔ01 - Gas Refund and Epoch Adjustments

PSP-EPΔ01 - Gas Refund and Epoch Adjustments


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



Have a good holiday all.

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Good job, thank for your proposal

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not good suggestion already no one is using the paraswap now if we change the gas refund program it’s going to be difficult to penetrate in to the market - it’s my thought to keep the following program as is and decrease the maximum amount of refund every wallet gets and for those people who stake double increase the refund limit

then everyone will be happy and new users also will show intrest to use our exchange than other dexes and we can limit the number of psp going into circulation

and announce airdrop for the previous transactions and further transactions from now on going to be conducted in arbitrum and optimism and avax and so that it will be adopted in the market after that we can use the above proposed gas refund program so that the people will be already addicted to use the dex so that they will eventually accept the change - it’s my suggestion


I’m not sure where you get your data about paraswap usage from, have you checked the dashboard? ParaSwap has 8 to 16 thousand daily users with hundreds of millions generated in volume every week.

In either case, this vote is to adjust the already voted on Gas Refund changes, you can read more about it on the PSP 2.0 vote. .

This vote is about adjusting the formula from the previously agreed one ParaBoost-related changes as well as epoch changes. Feel free to share your opinions in a different proposal, but right now it’s best that we focus on the matters being proposed by the OP.

Finally, please refrain from sending three posts in a row about the same topic, I’ve merged the three of them into a single post.

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nice hollidays!!!

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