Keywords
PSP 2.0, Fee Sharing, Automation
Simple Summary
This proposal suggests multiple updates and additions to ParaSwap’s current environment for collecting fees, such as transitioning to wETH, upgrading to handle multiple AugustusSwapper versions, introducing a new FeeClaimer contract, and implementing a new fee collection for partners. Additionally, the proposal includes the integration of a new Permissions Manager component and finalizing the testing period by activating Mimic’s fee. The updates are expected to take around three weeks to complete after the proposal’s approval.
Current status
The environment for ParaSwap has been running successfully for two periods across seven networks: Ethereum Mainnet, BNB Smart Chain, Avalanche, Polygon, Fantom, Arbitrum, and Optimism. Throughout these periods, we have made some adjustments to the gas configuration to optimize performance. Additionally, we have upgraded the process for withdrawing swapped assets from a manual to an automated operation, which has improved the overall efficiency of the environment.
Updates
We have received several requests to change different aspects of ParaSwap’s environment, and it makes sense to group them together into a new proposal. By consolidating these requests into a single proposal, we can evaluate and prioritize these changes more efficiently.
Requirements
1. Swap to wETH
Currently, all collected tokens are swapped to the wrapped native token on each network. However, the ParaSwap team proposed that it would be more convenient for distribution purposes if all environments swapped to wETH. Otherwise, it has to be done manually.
To implement this change, we will need to update the collect and swap action to swap to wETH on the current environment across all chains.
2. Multiple Augustus versions
ParaSwap is continually enhancing its platform by adding new routers. The environment will need to handle multiple routers and ensure a smooth transition between them.
To implement this change, we need to create a new connector that can handle a new router, update our bots to use it, and integrate it into the current environment.
3. Multiple Fee Claimers
ParaSwap may also launch new Fee Claimer contracts that the environment needs to collect assets from. These new contracts will also need to coexist with their previous version.
To implement this change, we will need to update the new collect and swap action to include new fee claimer contracts on all supported chains.
4. Partner fee claimer
The last requirement is to collect and swap fees that ParaSwap obtains from partners. However, since sometimes claiming address is unchangeable on the partner’s smart contracts, the environment will need to use the existing contracts that have permission to obtain them.
To implement this change, we need to update the current collect and swap action to obtain partner fees via the authorized contracts.
May 10, 2023 - Amendment to Original Proposal
Thank you all for your interest and engagement in the proposal. Based on discussions and alignments with ParaSwap core developers, the proposal will be complemented with additional features, some of which were part of the original plan. The ultimate goal is to contribute to the complete automation of ParaSwap’s fee redistribution cycle. In addition to the updates and requirements previously mentioned, the following elements will be incorporated:
5. ParaBoost automation
The merkle root responsible for managing the ParaBoost score during each epoch will be updated automatically. This will help to ensure that the score remains up-to-date on time each epoch and accurately reflects the current state of the platform.
To implement this change, a new automation task will need to be developed that interacts with the ParaBoost component and PS API.
6. 80/20 Withdrawal
The 80/20 withdrawal distribution model will be automated. This means that 80% of the withdrawn assets will be directed to the Distribution Controller, a ParaSwap component, and will go directly to the ParaBoost system. The remaining 20% will be allocated to the DAO treasury. This allocation ratio remains adjustable, allowing the owner to modify percentages in accordance with future updates or needs.
To implement this change, the withdrawal task needs to be modified to include the Distribution Controller and the DAO treasury as recipients, and allocate the assets according to the 80/20 split.
7.Bridging
A fully non-custodial and trustless solution for bridging assets across each supported chain directly to the Ethereum Mainnet will be provided. This will improve the overall interoperability and efficiency of the platform by allowing seamless cross-chain transactions.
To implement this change, a new bridging mechanism will need to be developed that can securely and transparently facilitate cross-chain asset transfers without relying on any third-party custodians.
These additional features will further enhance the automation and efficiency of ParaSwap’s fee redistribution cycle, ensuring a more seamless experience for all. Moving forward, any future changes will be thoughtfully considered and assessed in line with the evolving needs of the platform. Our total timeline of deployments is 4 weeks once the snapshot is approved.
New component
We are pleased to integrate the Permission Manager component into the environment, as part of these updates. This new component will make it easier to manage permissions and simplify changes and migrations.
Fee model
As of now, Mimic has not charged any fees as we have been in a testing period. However, in order to proceed with the changes, we plan to finalize the testing period and activate the fee. Going forward, Mimic will charge a 2% fee for assets processed through the Smart Vaults, subject to a monthly cap of 10,000 USD. While the cap has been increased from the previous proposal, it’s worth noting that there will be no deployment or setup fee associated with this fee structure.
Timeline
The timeline has been planned giving priority to the most critical updates such as swapping to wETH, partner fee claimer, and the implementation of multiple fee claimers. The update for multiple Augustus connectors will be incorporated afterward.
Updates | Business days |
---|---|
Swap to wETH | |
Partner fee claimer | |
Multiple Fee claimers | 10 |
Multiple Augustus connector | 5 |
Overall, it will take approximately three weeks to complete all of the updates and implement the new features once this proposal has been accepted.