Streamlining PSP Incentives: Automating Processes?

Research and Discussion
1

Hello everyone,

I’m Gonzacolo.eth, co-founder of WakeUp Labs.

First time posting in this forum, though we’ve been ParaSwap users for quite some time.

We were fortunate enough to meet the team in person at ETHDenver 2024 and gain a better understanding of why this protocol has been so successful.

Since then, we’ve tried to stay closer to the community and keep up with protocol updates, mostly as observers until now.

However, we’re now planning to explore some ideas that came to mind and discuss them further in the forum!

The first idea that comes to mind is:

Given the recent change in PIP-53 (Snapshot), the incentive system for staked PSP has been greatly simplified. However, the overall process remains relatively unchanged:

  1. The rewards amount is calculated.
  2. We share it in Snapshot to let the DAO vote, if the number is okay.
  3. Once approved, there’s a multisig process to transfer funds to the escrows for claiming.

This process not only involves significant operational work that takes up the protocol’s resources but also presents potential human error risks.

Currently, we’re pretty confident that technology can further iterate on this process to fully automate it, reducing these risks and allowing the ParaSwap team to focus more on scaling the protocol.

Thoughts? We’d love to dive deeper into this topic.

Thanks!

4 Likes
2

Some thoughts on this post:

Over the past week, we’ve been engaging with the community, exchanging ideas, and starting to narrow down the scope for implementation—all while progressing with the technical research.

The first piece of good news: there’s genuine interest in moving forward with these processes. Not only could this free up valuable time for the core team, but it also aligns with our broader goal of further decentralizing the protocol.

From a technical standpoint, there’s definitely room for improvement, particularly with automating multisig signatures. We’ve been discussing and exploring potential solutions with the folks at UMA/oSnap.

2 Likes