PSP-IPΔ3: Bancor Allocation Addendum

Heya @Tenzent, I had the time to chat with Mounir and can provide additional information on the technical side of the proposal. So here are essentially the main missing pieces to have a full-fledged proposal compliant with our tentative PSP-IP framework.

I’ll let you discuss with @disiaque.eth to review the whole proposal and take this to a vote.

8. Forward-thinking considerations

  1. The PSP Bancor pool can currently support an 800K PSP deposit single-sided, so it should be one of the voting options. A budget over this amount can be allocated, to account for potential further single-sided BNT deposits.
    :arrow_right: Recommended voting options: A/ Allocate 800k PSP, B/ Allocate 1.5M PSP, C/Do nothing

  2. The initial budget will be committed for 3months (when deposited on Bancor up to the space available) to benefit from IL protection. Once the initial commitment period clears, it can be adjusted by further DAO votes.

  3. BancorV3 is coming and should provide additional benefits: a migration tool will be provided.

9. Implementation Overview

  1. The ParaSwap DAO multisig will supply liquidity on the PSP Bancor pool, up to the amount decided by the community and within the limits of the space available for single-sided deposits (800k PSP at times of writing).
    If necessary, the deposit will be split into several smaller operations.

  2. When BancorV3 goes live, the migration will be conducted as soon as safe and possible.

  3. The team/community will work together to figure the best options to enable easy tracking of the DAO’s treasury assets and their performance.