PSP Staking, PSP Emissions, PSP Security
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.
Meanwhile, to deal with the external circumstances of Wintermute temporarily pausing DeFi operations, we propose:
- 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.
- Pausing of Pool4 deposits
- 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.
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.
- 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
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.