PSP-IPΔ28 : sePSP1 Upgrade Module

Governance Proposals Approved Proposals
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PSP-IPΔ28 : sePSP1 Upgrade Module

Keywords

Liquidity, sePSP1, sePSP2

Simple Summary

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.

Means

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).

Metrics

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.

Implementation Overview

  1. Approval of the Buffer PSP for the contract
  2. Creation and audit of the upgrade contract

Voting Options

  1. For
  2. Against
  3. Abstain

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6 Likes
2

Totally necessary ! FOR

3

Hello,
I completely agree with the desire to facilitate the transition from sePSP1 to sePSP2. Thank you for launching this reflection so early!

If I understand correctly this buffer which will never really be “spent” will be used to advance the user who wishes to upgrade from sePSP1 to sePSP2, and at the end of the 4 epoch unlock period, the amount of $PSP corresponding to the upgraded sePSP1 are returned to this fund.
This has probably already been studied but I was wondering if the smart contract upgrade, in addition to allowing the transition from sePSP1 to sePSP2 with the additional ETH, could not remove the sePSP1 unlock period in case they are upgraded.

Example:

  • I unstake my sePSP1 => 4 epochs before unlock
  • I upgrade my sePSP1 to sePSP2 => 0 delay before transfer.

I am in favour of this improvement, and if this technical solution is not applicable or the effort is too great, I will support it.
I just think that if we can avoid leaving funds “unnecessarily available”, we might as well save them.

1 Like
4

I’m in favor of facilitating the migration from sePSP1 to sePSP2 but can’t we upgrade the smart contracts to do that without the need of a buffer?

1 Like
5
  1. For!!!

Thank you…

6

Sadly, from my understanding upgrading the smart contract would mean having to migrate all of the current sePSP1 holders to the new upgraded system, especially as this contract would have significant new logic with the unstake-instantly-but-only-to-upgrade baked-in function. With this solution, we manage to have the upgrade module asap without compromising holders :slight_smile:

3 Likes
7

100% in favor of it. We need to help people to move to sePSP2 and bring more value than keeping sePSP1.

8

please add the migration boost too!

9

sePSP2 IS the boost ser : What are the differences between sePSP1 and sePSP2? | ParaSwap Help Center
If you refer to one shot 100% gas refund, this offer was for the original sPSP (old version) to sePSP2 and ends at the end of the Epoch 2. Rewarding people that had faith in social escrow.
So if it ends for sPSP to sePSP2, I don’t think we should add it for sePSP1 to sePSP2.

We should encourage people to stake in sePSP2. I think that letting 2 months for people to make this move while being incentivised is quite reasonnable.

10

I am not talking about the gas refund,

‘‘To encourage migration towards sePSP2, existing stakers could be eligible for a 6-epoch ParaBoost of 20% on their new stake once they complete the migration to sePSP2’’

if you give a migration boost when moving from sePSP1 to sePSP2. I don’t see a problem why not?

11

Hi, thanks for your suggestion!

Sadly, as I explained in the Discord, implementing a migration boost from sePSP1 to sePSP2 would only serve to punish users that decided to stake sePSP2 directly. If we give a three month boost for using the upgrade module, then stakers will have to first stake in sePSP1 and then go to sePSP2 to maximise their boost.

The migration boost served to move users from PSP 1.0 to PSP 2.0, and every user was given a choice between one and the other, meaning that the opportunity was equally available for all. As @Albist explained, the 2.5x and pooling boosts + the ability not to exit the system for 28 days should be sufficient to encourage an upgrade to sePSP2

4 Likes