For the updated last version, check the top post
After the received community feedback, we edited the original proposal with an updated proposal. The changes are:
- All addresses will have to claim their PSP through a UI instead of by pool rewards.
- A snapshot was taken of all stakers who were still in the pool until the middle epoch. This includes APWine users.
- Amended distribution calculations for Pool 4.
If there are no more oppositions, we would like to publish this on snapshot by November 2, 1 pm UTC to begin the distribution.
Original Proposal
Simple Summary
We propose to send a total of 39,242 PSP rewards (split among stakers and the Market Maker) to the sPSP10 reward pool to rectify the volume it accrued while the staking system was not automatically reporting it.
Meanwhile, to deal with the external circumstances of Wintermute temporarily pausing DeFi operations, we propose the pausing of deposits into Pool4, a reduction of cooldown to 2 days to allow an easier transition into another pool, and a final refill of 100,000 PSP to sPSP4 for users to cover for their Accrued Yield losses on sPSP4 while we propose moving into the new transition system for PSP 2.0.
As this is a time-sensitive issue involving user stakes, we propose expediting this proposal after reaching a social consensus on this decision.
By making this a two-day vote instead of five days one starting Wednesday at 14 pm UTC, we allow stakers to have:
- Flexibility to switch pools if needed
- The ability to see the final yield ahead of epoch end
- Clarified uncertainties on stake situation ahead of PSP 2.0 release
Context
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 sending the missed PSP amount to Pool10 during the epoch distribution period.
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 to either transition easier to a new Market Maker or receive a legacy amount of emissions as we begin transitioning to the new system.
Goals and Means
- To compensate previously missed rewards for Pool10 stakers.
- Provide 19,621 PSP to Pool10 (sPSP10) stakers and 19,621 PSP for Market Maker, totaling 39,242 PSP
- Pause deposits into sPSP4
- Reduce cooldown to 2 days on sPSP4
- Provide 100,000 PSP to sPSP4 stakers only as an early migration into the PSP2.0 transition system and compensate for Accrued Yield losses.
Forward Thinking Considerations
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 and sends the rewards to the current epoch.
Voting Options
- For
- Against
- Abstain