PSP-IPΔ21: Rectifying Pool 10 & 4 yield ahead of PSP 2.0

Keywords

PSP Staking, PSP Emissions, PSP Security

Simple Summary

[Original Proposal Link]

Pool10

We propose allocating 19,621 PSP rewards to users staking in sPSP10 by the middle of Epoch 24 (block 15712957) to rectify the volume it accrued while the staking system was not automatically reporting it. To compensate the Market Maker, we propose sending 19,621 PSP rewards to the Market Maker vesting contract.

Pool4

Meanwhile, to deal with the external circumstances of Wintermute temporarily pausing DeFi operations, we propose:

  1. Final distribution of 170,000 PSP to the users staking in sPSP4 + APWine sPSP4 stakers by the middle of epoch24 (block 15712957) to cover for their Accrued Yield losses on sPSP4 while we propose moving into the new transition system for PSP 2.0.
  2. Pausing of Pool4 deposits
  3. Reduction of cooldown to 2 days to allow an easier transition into another pool

Both pool4 and pool10 rewards will be distributed via a distribution contract, and users will need to claim from a native UI to be built after the vote passes.

Context

The current PSP staking system consists of a stake-to-signal mechanism in which stakers opt into any of the different ParaSwapPools representing Private Market Makers.

Recently, ParaSwapPool10’s wallet change led to an epoch period (Epoch 24) in which, despite the Private Market Maker still accruing volume, no yield was reported to stakers. This led to ParaSwapPool10 stakers not receiving the yield they should have during Epoch 24.

This proposal aims to solve this situation by distributing the missed rewards to wallets that were staking by the middle of Epoch 24, hence did not have time to change to another pool and get that pool’s rewards. Additionally, the proposal will send the corresponding Market Maker rewards to the Market Maker’s vesting contract.

Additionally, Wintermute, the Private Market Maker behind Pool4, has ceased operations following a hack. This circumstance has been outside the control of both stakers and ParaSwap. For that reason, we propose to assist stakers of this pool in transitioning easier to a new Market Maker and receiving a legacy amount of emissions as we begin transitioning to the new system. To make a fair estimate of the legacy amount (170,000 PSP) we took into account the average last 6 epoch rewards allocated to Pool4.

Goals and Means

  • To compensate previously missed rewards for Pool10 stakers.
  • Provide 19,621 PSP to Pool10 (sPSP10) mid of epoch 24 stakers and 19,621 PSP for Market Maker, totaling 39,242 PSP
  • Provide 170,000 PSP to sPSP4 + APWine sPSP4 mid of epoch 24 stakers as an early migration into the PSP2.0 transition system and compensate for Accrued Yield losses.
  • Pause deposits into sPSP4
  • Reduce cooldown to 2 days on sPSP4

Forward Thinking Considerations

Assuming the proposal for PSP 2.0 passes, all future pools will receive similar emissions for users, as they will no longer be tied to Market Maker performance. This proposal will not interfere with the current PSP 2.0 discussion, as this one only deals with epoch 24.

Voting Options

  • For
  • Against
  • Abstain
17 Likes

Hello
i was on sPSP4 and sPSP10 on previous epoch until the end. I have withdrawed all my bag the last day after time-out, to another pools. (i was not sure about current situation and especially how long it would stay at 0% without volume)

Is there any compasation planned for people like me ? i guess i’m not alone

Thank you for your feedback

1 Like

What about stakers that withdrawed during previous epoch from pool4 to go in another pool during the current epoch ?
Compensation ?

Thanks :pray:

1 Like

Hi guys, i withdrew my position in pool 4 yesterday because i read about the Wintermute cease of operations. Awaiting the 7 days withdraw period do i need to do something else before staking in another pool? I also noticed that i will only get my initial staking amount back and not my accrued psp…have been staking from day one.

1 Like

Hi all, thanks for your comments and thoughts.
While we know this is not perfect this is the only tool we as a DAO can deploy to help people still affected by the pool. Users who already re-staked into a different pool have received or will receive yield, more than what this will even give. This is more for users who for whatever reason are currently unable to move their stake with their current criteria. Fortunately, if PSP 2.0 passes, will solve this issue soon, so this is just a temporary fix until that happens

Am against the proposal

I have now withdrawn my pledge from the 8 pool, again with no pledge reward, shouldn’t that qualify for your compensation? We are all loyal supporters who pledged and held $psp from the first airdrop, and although the tokens transferred wallets, the on-chain records should be accessible to you. I hope this issue is not overlooked. :cold_face: :weary:

Hello, I think this is a great idea, nevertheless I have few questions regarding sPSP that are in APWine protocol.

How do you technically plan to provide theses 100K $PSP compensation? Through the sPSP4 pool directly? I’m asking that because > 30% of sPSP4 pool is sitting on APWine protocol right now.

Are you in close contact with APWine team so they be prepared to instantly stop the Future yield for sPSP4 pool and allow stakers to withdraw? FYI: sPSP4 APWine Future is set to end Dec 18 2022.

As big part of the stakers that are concerned by that proposal are in APWine, they will not be able to vote for that proposal because they are not included in the snapshot system.
I think that APWine should be able to vote FOR on behalf of these stakers.

I think that it’s going to take time to synchronize with APWine team/dao, I don’t think this should be a 2 days voting period.

3 Likes

What I managed to find out from discord mods, is that you can re-stake into Pool4 and it will be considered at snapshot

To cancel a withdraw, click on PSP on the top right then on “Withdrawal Requests” then “Cancel”

Hey Enerow, thanks for this complete feedback.

It will be a normal distribution as we usually do, except that the PSP will be distributed to Pool4 only and not the market maker.

Yes, we are. They’ll have to pause the zap feature, which is no longer useful anyways as there is no more yield. Apwine will benefit from this 100k PSP the same way as other stakers (minus those who left the pool)

What will be the right timeline? We proposed 2 days to leave enough room before the end of this epoch.

We can think of alternatives (using a merkle distribution…), but it may take sometime to build claim UIs

In order to get the pool rewards you need to stay till the end of the epoch. Unstaking at any point before the end of the epoch will not give any rewards.
If you want to know more about how the staking system works, including its rewards, please visit the help center
Also, this proposal is exclusively referring to Pool10 and Pool4. Neither of the other pools have been affected

I’m not talking about the pledge rewards, I’m talking about the V2.0 airdrop qualifications.

If everything is handled/prepared on both Paraswap and APWine side, we can go for a 2 days vote.
I was saying that 2 days won’t be enough if snapshot vote for this proposal was created today “Wednesday at 14 pm UTC” like @agrosso mentioned.

1 Like

Thanks for your comments, this issue is not being overlooked at all, and we are glad to receive feedback from the community.
I see you already shared your thoughts in the PSP 2.0 thread, let’s keep discussions in their corresponding thread

Thanks, everyone for your thoughts. Listening to your feedback and valid points raised in this forum discussion I propose to put this on hold until we find a better distribution alternative that takes into account:

  1. wallets who already unstaked from pools4 and 10
  2. APWine stakers (pool4)
1 Like

For the updated last version, check the top post

After the received community feedback, we edited the original proposal with an updated proposal. The changes are:

  • All addresses will have to claim their PSP through a UI instead of by pool rewards.
  • A snapshot was taken of all stakers who were still in the pool until the middle epoch. This includes APWine users.
  • Amended distribution calculations for Pool 4.

If there are no more oppositions, we would like to publish this on snapshot by November 2, 1 pm UTC to begin the distribution.


Original Proposal

Simple Summary

We propose to send a total of 39,242 PSP rewards (split among stakers and the Market Maker) to the sPSP10 reward pool to rectify the volume it accrued while the staking system was not automatically reporting it.

Meanwhile, to deal with the external circumstances of Wintermute temporarily pausing DeFi operations, we propose the pausing of deposits into Pool4, a reduction of cooldown to 2 days to allow an easier transition into another pool, and a final refill of 100,000 PSP to sPSP4 for users to cover for their Accrued Yield losses on sPSP4 while we propose moving into the new transition system for PSP 2.0.

As this is a time-sensitive issue involving user stakes, we propose expediting this proposal after reaching a social consensus on this decision.

By making this a two-day vote instead of five days one starting Wednesday at 14 pm UTC, we allow stakers to have:

  • Flexibility to switch pools if needed
  • The ability to see the final yield ahead of epoch end
  • Clarified uncertainties on stake situation ahead of PSP 2.0 release

Context

The current PSP staking system consists of a stake-to-signal mechanism in which stakers opt into any of the different ParaSwapPools representing Private Market Makers.

Recently, ParaSwapPool10’s wallet change led to an epoch period (Epoch 24) in which, despite the Private Market Maker still accruing volume, no yield was reported to stakers. This led to ParaSwapPool10 stakers not receiving the yield they should have during Epoch 24.

This proposal aims to solve this situation by sending the missed PSP amount to Pool10 during the epoch distribution period.

Additionally, Wintermute, the Private Market Maker behind Pool4, has ceased operations following a hack . This circumstance has been outside the control of both stakers and ParaSwap. For that reason, we propose to assist stakers of this pool to either transition easier to a new Market Maker or receive a legacy amount of emissions as we begin transitioning to the new system.

Goals and Means

  • To compensate previously missed rewards for Pool10 stakers.
  • Provide 19,621 PSP to Pool10 (sPSP10) stakers and 19,621 PSP for Market Maker, totaling 39,242 PSP
  • Pause deposits into sPSP4
  • Reduce cooldown to 2 days on sPSP4
  • Provide 100,000 PSP to sPSP4 stakers only as an early migration into the PSP2.0 transition system and compensate for Accrued Yield losses.

Forward Thinking Considerations

Assuming the proposal for PSP 2.0 passes, all future pools will receive similar emissions for users, as they will no longer be tied to Market Maker performance. This proposal will not interfere with the current PSP 2.0 discussion, as this one only deals with epoch 24 and sends the rewards to the current epoch.

Voting Options

  • For
  • Against
  • Abstain
8 Likes

List of eligible addresses can be found here

2 Likes