PSP-IPΔ26 Establishment of a Governance Committee and Decentralisation Governance Roadmap

Co-authored by: Burns, 0xYtocin


Governance, PSP 2.0, Accountability, Rewards, Staking

Simple Summary

This proposal clarifies the roles, responsibilities, and membership of the Governance Committee contributors. This governance committee will be in charge of ensuring that the PSP rewards distribution is working as intended, and will meet regularly to monitor this.


First introduced in the PSP 2.0 proposal, the role of the Governance Committee (or GovCo) is to ensure that the systems being introduced remain fair and unbiased, as well as execute Emergency Measures in case a key vulnerability is found (which are exemplified later in the proposal).

This proposal seeks to expand this into a more detailed framework, exploring the structure of GovCo, the responsibilities of members, as well as a list of potential members to be nominated for the first iteration of the committee. Additionally, the proposal introduces a framework for further decentralizing the structure of the DAO in the future, such as the trial of the ‘ParaTroopers’ contributor system.

With the passing of this proposal, the ParaSwap DAO will be equipped with contributors able to monitor the successful implementation of PSP 2.0, which will be needed to accomplish the required goals set in the initial trial period outlined in the proposal. Additionally, this proposal will permit for the experimentation of a contributor-based distribution system.


The main goals of the proposed Governance Committee are as follows:

  • Ensure that the Social Escrow system and PSP 2.0 reforms are working as intended
  • When applicable, monitor and report potential vulnerabilities or unintended uses of the Social Escrow PSP system, and trigger Emergency Measures if necessary.
  • Report suggestions, improvements, and ideas to the DAO about the Social Escrow staking and reward systems associated with it (meaning revenue redistribution + gas refund rewards).
  • Implement bi-epoch checkpoints where the Governance Committee will discuss PSP 2.0 implementation updates, correct rewards distribution, and potential improvements.
    • During the end-of-epoch checkpoint, ensure that the rewards are effectively distributed as established in past meetings by the Committee.

Meanwhile, the main goal of the ParaTroopers pilot programme will be to experiment on a framework for a DAO contributor structure. In addition to experimenting with the format of Coordinape, this section of the proposal will also serve to clarify the objectives and vetting process of the first members of the system.

Means I - Structure and Responsibilities of the Governance Committee

Meeting Sessions

Committee members will be expected to meet regularly every half epoch to discuss progress and findings with other members of the Governance Committee. In addition to these compulsory meetings, depending on the urgency of the matters discussed in the last meeting, the Committee can agree to hold an additional session during the off weeks.

Duties of the meetings:

  • Review data analytics of current performances of the sePSP system: Staking rates, staker boost performance, gas refund, reward distribution, etc.
  • Suggest changes to the current system if necessary.
  • Evaluate whether any actors might be acting maliciously (eg exploiting the ParaBoost system for personal gain)
  • Ensure the distribution of rewards after an Epoch End.

Emergency and Safeguarding

From the PSP 2.0 proposal, GovCo can decide to implement two kinds of emergency motions, depending on the severity of the issue reported:

  • Tier 1
    • Type: Emergency
    • Scope: User funds are at risk
    • Actions: Immediate intervention by pausing the system, then a community discussion + vote for further actions. Only GovCo can pause the contracts and should release a postmortem.
  • Tier 2
    • Type: Emergency
    • Scope: Risk on Revenue takeover (egg: Attack on the rev share by exploiting a loophole on the ParaBoost)
    • Actions: 24h vote time. If the attack happens 24h before the fee distribution time, the reaction should be immediate and follows the same process as Tier-1. The action should be limited to pausing fee distributions.

In addition to these two emergency powers, the Governance Committee is encouraged to express other non-emergency concerns they might have about the way the system is running during one of the regular sessions.

Finally, in case any of these vulnerabilities were reported by an outside party, the Governance Committee is entitled to manage the PSP bounty present in the Hats.Finance vault if deemed necessary. Vulnerabilities reported from within the committee will be entitled to the bonus Participation reward.

Participation Rewards

We expect committee members to devote a significant amount of time to the Governance Committee, which we understand is a big commitment, as all current candidates are also members of other projects in DeFi.

Because of this, we recommend that assuming all accountability measures are fulfilled, each seat is entitled to up to the equivalent of 1000 USD monthly in PSP per epoch after fulfilling all expected basic duties Payment will be sent to users after three epochs of participation in the program.

The USD to PSP conversion will be done using PSP last 30 days’ average price.

Additionally, GovCo members who report a vulnerability will receive up to the equivalent of 1000 USD in PSP in the epoch the vulnerability was reported.

While we recommend for the Governance Committee to decide what constitutes a valid report, some examples of what could be considered a vulnerability include:

  • Actions triggering Tier 1 or Tier 2 Emergency Proposals which, if executed, endanger user funds or revenue takeover.
  • Other actions that may lead to the potential gaming of the Social Escrow System or ParaBoost.

The member will be expected to present this vulnerability to the other Governance Committee seats, attaching any relevant information and figures and potential solutions.

The USD to PSP conversion will be done using PSP last 30 days’ average price.

Current Member Candidacy:

As of the release of this proposal, the following members of the ParaSwap DAO and other DeFi protocols have expressed their interest in participating in the committee. In total, GovCo will aim to have 6 seats:

  • Enerow
  • Balancer
  • Avantgarde Finance
  • Paladin
  • Pascal0x from Jarvis Protocol
  • ParaSwap (technical)

Finally, a core team member will hold a technical seat position, and they will be tasked in providing any technical assistance or information needed during the meetings, as well as initiating proposals.

On Rotating and Protocol Seats

If a seat is clarified as a ‘Rotating Seat’, it means that the seat is assigned to a protocol rather than an individual, and the individual itself can potentially change at the discretion of the protocol. Regardless of the number of people representing this seat, they will still be entitled to only one vote.

This process of seat rotation occurs purely on the Protocol side of things, and will only require a vote from the entirety of the Governance Committee if they wish to replace their protocol seat entirely (see the next section for more details)

Seat Replacement and Additions

For security measures, the Governance Committee will always require at least five active seats for functioning, with a currently budgeted maximum of up to 8 seats.

For the inclusion of a new GovCo seat, the candidate’s nomination will be discussed during one of the regular meetings, and afterward, a vote will be made regarding the inclusion. For the candidate to be included, a supermajority of at least two-thirds of all votes will be required.

If a seat member wishes to stop being part of the Governance Council, they must give at least one whole epoch’s notice to allow member preparations. The seat member must then also assist in finding a replacement for the seat unless other Governance Committee members agree to reduce the number of seat members.

Metrics - Accountability

Baseline Metrics

  • Attendance threshold for each seat of at least 75% of the meetings mentioned in the ‘Meeting Sessions’ section.
  • Ensure the proper distribution of rewards during the post-epoch reward period.
  • Setting group KPIs after each meeting to resolve issues that might have been brought up during the session.

Vulnerability Reporting Metrics - (Bonus Compensation Only)

  • Provide a risk assessment and clear explanation of the issue being brought up
  • Communicate during the GovCo meeting the issue found, with any relevant accompanying data or evidence.

Means II - Introduction and planning of the ParaTroopers Contributor structure

Definition, Purpose, and Role

Part of the PSP 2.0 Trial period is to include a compensation structure to reward active community members in a contributor system dubbed ParaTroopers. These DAO contributors will be champions for ParaSwap with a mission to further the decentralization of the protocol and be responsible for:

  • Being an interface for those looking to learn more or integrate with ParaSwap Protocol
  • Assist with governance proposals before posting to the forum
  • Provide technical support
  • Manage contributors to the DAO and its surrounding community


As a first step in a compensation model, a Coordinape circle is to be set up with contributors delegating “Give” to each other in line with their levels of contribution for the epoch.

The initial setup of the ParaTroopers contributor system is proposed to be a joint effort by Burns (Balancer Grants Co-lead) and Oxytocin (ParaSwap) to monitor and guide it through a trial period, with the intention of it becoming a self-sustaining group that continues to learn and evolve. Part of this will be defining communication processes, initial onboarding, setup tooling, and other general processes to create a sustainable system.

A long-term goal is for specific DAO roles to emerge and be compensated accordingly, with the Coordinape circle serving as a “bonus” for long-term, highly engaged contributors and the possibility of immediate compensation for any new contributors.

Genesis Onboarding

There is proposed to be ~5-10 initial ParaTroopers with this number to be assessed as the trial progresses.

Onboarding for the founding ParaTroopers and the associated Coordinape circle will be via self-nomination through a submission form, followed by an interview by Burns and Oxytocin, to begin with, and then other ParaTroopers. Future additions will be via a case-by-case basis, nominated by one ParaTrooper and assessed by existing members.

As this initiative is also part of the PSP2.0 trial period, the structures and processes of the system may be subject to major alteration and improvement as a result of further experimentation and iteration. At the end of the trial period, the ParaTrooper contributor system and its participants will be assessed by the community to determine whether to continue, iterate or dissolve the initiative.

Participation Rewards

For the first epoch, the ParaTrooper Coordinape circle will have a max ceiling of $350 usd paid in PSP per contributor with the multiplier discussed below to be added on top. This would have a max budget of $5250 per epoch once max multiplier is reached after 3 epochs (10 paratroopers @ 1.5x).

To encourage long-term holding and commitment to reducing token sell pressure amongst ParaTroopers, the trial will include an sePSP2 ‘streak’ compensation multiplier. This increases compensation for locking tokens for multiple epochs in a row, up to a maximum of 1.5x. However, if an unstake is made on the previous epoch, the streak will be lost and the compensation will revert to the standard rate.

Streak (# of Epoches) Multiplier
0 1.0x
1 1.125x
2 1.25x
3+ 1.5x


  1. If a contributor is awarded $350 USD by their peers through the Coordinape circle and has been staking continuously for the previous 3 full epochs, they will be compensated @ 1.5x = $525 paid in PSP .
  2. The same contributor unstaked their sePSP2 in the last epoch or has no staked sePSP2, they will have a 1.0x multiplier = $350 USD in PSP

The USD to PSP conversion will be done using PSP last 30 days’ average price.

Metrics - Accountability

Baseline Metrics

  • Growth of Discord members, weekly communicators, and new member retention
  • Qualitative increase in community communications
  • Governance forum and voterparticipation
  • Relationship between ParaTroopers and other DeFi communities

Forward Thinking Consideration - Further Decentralisation Steps of the DAO

This is the first step of decentralization, and a first-time experiment for the ParaSwap DAO. As the DAO matures, however, it is important to begin delegating more and more features to be running entirely through the DAO. In addition to the current Governance Positions, we could explore other methods of management from similar DAOs.

Implementation Overview

  • Election of Governance Committee members
  • Appointment of Genesis ParaTroopers
  • Setup DAO tooling and contributor compensation structure

Voting Options

  1. For the creation and election of GovCo members and ParaTroopers
  2. Against
  3. Abstain



I’m thrilled that this decentralization process is being conducted while PSP 2.0 is being implemented.
It can’t have been easy, but I have to admit that the commitments made at the beginning of the DAO are being carried out.
Although the final goal is not easy to achieve, I think this proposal is a very good first step with this two level structure:

  • A council of experienced personalities/protocols to check the social escrow and manage emergencies.
  • A cell of contributors that have to make the DAO as dynamic as possible.

I support this initiative.


I am really excited about this proposal and fully support it.

I believe ParaTroopers will play a crucial role during the next phase of adoption.
Not only will this structure allow active community members to be rewarded for their contributions, but it will also free up the Core Team to focus more on designing/developing a great product and less on day to day users onboarding, technical support and DAO management.

The participation rewards structure, which includes a compensation multiplier for locking tokens for multiple epochs in a row, is an excellent way to encourage long-term holding and commitment to reduce token sell pressure amongst ParaTroopers.

This move towards a greater decentralization will not only strengthen the autonomy of the DAO but also increase trust and transparency among its members. I believe that this proposal is a big step forward in the right direction and as the DAO matures, it is important to continue delegating more and more to the DAO.


This proposal is a classical example of the axiom “the older the wine, the better”. Paraswap team has once again proved to the entire DeFi community that it remained committed to it’s original objectives of being a trail blazer of innovation and of achieving full and complete decentralization in the future.

The establishment of the GovCo and the Paratroopers at this point in time will further strengthen the renewed hope in the Paraswap and PSP project and pave way for future improvements. Kudos to all the contributors of this initiative.

I am 100% in support of all that is entailed in this proposal.

There’s a mention of a nomination form for Paratroopers in the proposal and interested DAO members should reach out as stated in the proposal. However, I want to personally nominate a few DAO members who have shown extraordinary commitment to the success of this project since inception and whom I believe possess the required skill set and commitment to function as a Paratrooper.

The members include:

  1. @Albist
  2. @Tenzent
  3. @dydymoon
  4. @CZhead
  5. @dseeker (myself)

For the record, no prior discussion has taken place between myself and the nominated members.


Quite a proposition.

Psp goes deeper and deeper into the Dao system.

After income sharing, command sharing.

Nothing to say about the proposed names/protocol for the govCO.

The voting deadlines for emergencies seem coherent to me and we had already discussed them in order to reach a consensus between “democracy” and reactivity in case of major problems.
This has been done.

The paratroopers will, I am convinced, be a real added value to the project. There is nothing better than people who are committed to the project and who can speak out loud and clear for it.

The evolution of PSP is above my expectations. It is moving fast, very fast and for the better.

As the French say, y’a plus qu’à.

Edit :

Like all good French people, I am rather reluctant to talk about myself, for myself. I have a philosophy that actions speak much better than words.
But here I am, no longer as a real estate investor, decentralization and crypto currency fan. But as a future Paratrooper because … what do you mean I’m skipping steps?

Quick recap:

I’ve been following PSP very closely for a little over eleven months now. I have this ability to become extremely interesting when I’m interested (did I tell you that I’m interested in PSP?). This has allowed me to get several people into PSP.

  • My credo is stone investment (real estate for those who don’t get the idea). I manage flats, rates and people. These three aspects make me a versatile person who has the ability to take the issues I care about to the next level (did I mention that I care about PSP?)

  • The business aspects thrill me, I love extracting value and challenging established systems to extract more.

  • Always active with great pleasure on Telegram, or discord, I am also the first to give my opinion on proposals that pass on the DAO. Helping PSP in its quest for market share and decentralisation are a major source of motivation for me.

So there you go, I don’t know who you are and what you want. If it’s technical skills you’re looking for then I can tell you that I have none and that lines of code make me nauseous. But what I do have are very specific skills, skills that I have acquired over a long career. Skills that will make me a daydream for people like you. If you hire me today in the Paratroopers then I will help you, I will continue to be active in the networks, to help new and old holders and I will be at the front line to serve at my level, to structure future proposals of the DAO, I will be everywhere, all the time. But if you don’t do it … Well nothing will happen… I’m not Liam Neeson guys


Hi all!

I had the chance to meet with Mounir when he was launching Paraswap, a while ago, and have been a very loyal supporter since then, both as a user, investor, and also biz dev (I have often pushed wallets and projects to integrate with Paraswap).

It is a pleasure to see this new governance structure that actually inspired me to rethink our own governance (at Jarvis Network), as well as the se-model which I firmly believe is the good one.


Such a great announcement! Happy to read that the governance, roadmap decision and urgences are shared across these teams. Paraswap is really doing it the best way!

I’m interested into becoming a Paratrooper, Paraswap is a project I want to see succeed for the good of the industry, the competence of the team and plenty of other reasons, including a bit of PSP holdings (to be completely transparent).
Quick facts: I’ve been quite active in the DAO for minimum a year now, I’ve lead the change of the refund program to make it more sustainable and fair for all PSP holders. I have been in active communications with a few members of the team including @0xYtocin.
I’m deeply committed into bringing detailed reports of small problems I could have spotted on the Paraswap UI or API, battle-testing the interfaces and docs, and also helping around in Discord and Twitter as soon as it is necessary.

As a quick background I have a formation in Cybersecurity and now Tech lead in a startup for 4+ years bringing blockchain usages to the masses and the industry and exploring more applicable (and useful) use cases for NFTs.
I’ve been involved in a few other DAOs, even reported a critical vulnerability in Aavegotchi a year ago or pushed to rework some part of the tokenomics.

Would love to take part of this adventure as long as I can commit enough time and energy to the DAO!

So if you are curious do not hesitate to reach through Discord @Chab, cheers!


Hello everyone,

Honored to have our DAO seat at the GovCo amongst so many great people. As Paratroopers we will use our knowldge of governance and tokenomics built over the past years to help Paraswap steer PSP 2.0 in the right direction.

PS: I will also abstain on the vote to avoid any conflicts.


Your implication is undeniable. I think you would make a great Paratrooper!

1 Like

Paraswap is going to be the same for etherium ecosystem what GMX has been to arbitrium. All the best team and i fully support this proposal.

1 Like
1 Like

As stated in the PSP-IPΔ26 that created them, the ParaTroopers “will be champions for ParaSwap with a mission to further the decentralisation of the protocol and be responsible for:

  • Being an interface for those looking to learn more or integrate with ParaSwap Protocol
  • Provide technical support
  • Assist with governance proposals before posting to the forum
  • Manage contributors to the DAO and its surrounding community”

The ParaTroopers initiative started with epoch 4 and is part of the PSP 2.0 Pilot which will be completed and reviewed at the end of epoch 6.

First, a reminder of the roles self-assigned by ParaTroopers:

@Xrivijayan - Protocol marketing and tokenomics (left after Epoch 5, thanks for your ideas!)

@Xutyr - Developer support and technical assisting

@Bach - Developer support and technical assisting

@dseeker - Community newsletter and onboarding

@stikers - Community support and onboarding (left after trial ended, thanks for all your work!)

@Albist - Governance Procedures and community support

Here is a little recap of ParaTroopers’ activity:

Community support

Xut & Chab, our brave technicians are regularly bringing support in the discord.

The majority of the community’s technical requests are managed by these two nerds.

This indirectly increases the volume and number of possible routes for ParaSwap.

The rest of the ParaTroopers support the more traditional and less technical questions from the community.

Governance process

PSP-IPΔ33 : Governance framework and parameters adjustments + support community members through their proposal PIP-35.

Governance is still in its infancy, and the framework voted through is intended to simplify and increase participation.

A platform is being studied to bring together all the information needed to understand the DAO.

DAO communication

dseeker & albist created article & twitter threads to raise awareness of ParaSwap, and dseeker produced an “epochly” recap of the DAO activity.

ParaTroopers, while continuing to support the community on the existing social tool (mainly discord), want to embrace their role as a voice for the ParaSwap DAO, it’s why the PIP-35 created several official DAO tools to empower this wish.

The aim is to extend ParaSwap and its DAO, while improving the principles of clarity and transparency to make it easier for new users to access PSP2.0 and social escrow.

The main support activity on the ParaTroopers discord, which began long before the remuneration structure was introduced, will continue after the end of this trial period.

A separate proposal from the ParaTroopers will be created on the forum to propose the renewal of a new period for the ParaTroopers. This proposal will take account of the problems encountered and suggest improvements.