Proposal: Whitelist ParaSwap (PSP) + 100K BNT Co-Invest
This proposal is expected to appear on Snapshot for voting on November 21, 2021 4:00 AM .
TLDR;
- This proposal seeks to Whitelist the PSP Token.
- There are no apparent security concerns.
- There are no Reasons to doubt the legitimacy of the project/team.
- Co-Investment of 100,000 BNT.
- ParaSwap routes trades to Bancor so we should see a lot of the volume flow through bancor naturally.
Contract Address: 0xcafe001067cdef266afb7eb5a286dcfd277f3de5
Project Website: Paraswap.io
Projects
ParaSwap aggregates decentralized exchanges and other DeFi services in one comprehensive interface to streamline and facilitate users’ interactions with Ethereum’s decentralized finance.
“The arrival of the PSP token marks a new milestone in the project development. Indeed, a new set of actors — PSP holders/governance participants — are joining the ballet already made of the ParaSwap team, the market makers & various services ParaSwap integrates with or integrating it. So how does this work in the long-run?
As stated, with PSP our goal is to maximize the decentralization and resiliency of ParaSwap. This will require a decentralized infrastructure able to support the pathing computation necessary for ParaSwap to function in a timely manner.
Indeed, for a swap on any given pair, ParaSwap computes all/most potential routes to find the perfect mix leading to the best outcome (= best price). Yet, this path-finding process is very time sensitive: Ethereum produces a new block every 15s on average, and each new block can bring changes to prices, therefore changing the optimal route. Thus, the computation for the route optimization has to be done offchain currently to provide a satisfying user experience.
Solving this challenge is a mission both for the team and the DAO: while a technical solution is required, and the team is already working on it, we know that implementing such a solution will require a network of peers providing the computing power required for the pathing computation. This is where the DAO comes into play!”
Paraswap Boasts a huge amount of Volume, with part of it being routed through Bancor when it is more profitable for the trader. The token itself has also been garnering a 24HR Volume of around 50M.
Tokenomics & Security
PSP Has a total supply of 2 Billion with 7.5% (150M Tokens) Already distributed via the airdrop a few days ago. PSP tokens holders can stake on market makers to add weight to their rewards, pushing the market market to deliver more competitive rates. At the end of each epoch (14days) the rewards are splitted between market makers and stakers. The estimated APY is visible directly in the application and auto compounding with each epoch. Investors’ tokens are subject to a vesting with a minimum period of two years (+4 months lockup) and up to three and a half years for team members (+6 months lockup). Here is the token unlocking schedule:
Co-Investment Reasoning
The Initial Co-Investment is to see whether we can get a sufficient amount of liquidity to fill it before we commit to anything bigger. The Uniswap Pools are about 10 Times larger than the one proposed in this Proposal but once we can prove the space can be filled I believe we should consider upping the BNT Co-Investment to match the Uniswap Pool. There might however be some friction since the native single sided rates on Paraswap are very competitive so I’d like to see the pool fill before we consider upping it.
Price & Stats
PSP Price and Market Stats
| PSP Price | $1.13 |
|---|---|
| Market Cap | $96,044,150 |
| Market Cap Dominance | 0.00% |
| Trading Volume | $20,628,427 |
| Volume / Market Cap | 0.1532 |
Community and Communication
Voting
FOR - Approve Whitelisting + Co-Investment
AGAINST - Do Nothing