PSP-IPΔ28 : sePSP1 Upgrade Module
Liquidity, sePSP1, sePSP2
To create an upgrade module from sePSP1 to sePSP2 that does not have the usual 28 day unstake period for the user. To do this, the proposal will request to the DAO a maximum of 10 000 000 PSP per epoch to act as ‘buffer’ for this module.
Context and Goals
Currently, for a staker to be able to upgrade from sePSP1 to sePSP2 there is a 28 day period in between where they are not part of the staking system with this sePSP. This can be a very detrimental experience for an upgrade which is beneficial for the DAO, as sePSP2 boosts the liquidity of PSP as well as boosting the stake of users.
To encourage a better conversion experience for sePSP1 stakers upgrading to sePSP2 , this proposal suggests the introduction of an upgrade module, in which users can deposit additional ETH in combination with sePSP1 to instantly upgrade to sePSP2.
In addition to the requirement of a new Upgrade Smart Contract - which would accept sePSP1 + ETH in return for sePSP2 - this proposal is requesting for a ‘buffer’ PSP allocation from the DAO. This buffer would allow the user to instantly upgrade without having to go through the unlock period, and in the meantime, the contract can begin the unstaking + withdrawal process for sePSP1.
To properly budget this conversion buffer, this proposal will request for a maximum of 10M PSP to be used every epoch as buffer, or about ~ 20% of the total sePSP2 stake. Depending on the amount of sePSP1 being upgraded, this amount can be revised in the future either through a PSP-IP, or with a PSP-EP (as no real funds are being spent overall).
Proportion of stakers in sePSP1 vs sePSP2
Forward Thinking Considerations
Assuming that the contract is implemented as described here, the only major consideration to be considered is whether this buffer rate has to be adjusted sometime in the future.
- Approval of the Buffer PSP for the contract
- Creation and audit of the upgrade contract