Community Call #1 (Nov-20)
Summary of CC#1, courtesy of TheCubanMan17, a PSP holder and Discord community member

Members Onboarded:

Professional Llama, International Moderators, Ambassador, Content Producers.

Potential goals:

Retroactive Airdrop for contributors to the DAO/ team such as NFT artists.

Details on the ParaSwapPool model

There are a total of 9 total market makers.
Here's a quick rundown of the tokenomics. A market maker maintains the spread in price through arbitrage and attempts to provide a stable transaction. Maximizing the fee for a market maker through $PSP creates better swap rates for users of ParaSwap. $PSP earned is based off the volume.
The gameable aspect is fixed through the staking process which will provide competitive volume for the long term. This works through the attractiveness of the market maker; if they are a desired market maker they will have more stakers as it is in the stakers advantage to use a market maker which will generate more volume which will earn them more $PSP.
This keeps the market makers competitive. Plans are being made to allow smart contracts to stake $PSP eventually. Governance can cover % changes based on the price of $PSP and supply and maintain fair distribution. In the future perhaps the trade through ParaSwap can be made in a Uniswap manner that can take a fee at the trade.

Vesting schedule for PSP earned by PMMs

Market makers are subject to a much more aggressive model of vesting than stakers are. Tokenomics for the team are subject to a 6-month lockup with a 4-year total vest. Thereโ€™s the potential for a cliff drop for team members who no longer provide value to ParaSwap that will lower their earnings of $PSP and in turn the supply and lead to an increase in the price of $PSP.

Fees collected by ParaSwap & their usage:

Two sources of fees; positive slippage and fees added by integrators (Market maker?).
$3,500,000 fees were collected 50% of which were Eth and the rest various tokens based off which were traded most. Used to pay for announcements such as the insurance policy with Unslashed. Governance can direct how fees are used to provide the most value to users.
First layer of insurance funded by fees, potentially a second layer covered by another fund, which will be decided through governance. Fee can be used to provide more security to users. Funds can potentially be invested to grow the fund in the event of a problem that users need to have funds recovered.

Governance infrastructure & kickoff

Voting will be available to both stakers and holders.
Potential methods for voting: tally (problems may arise with SPSP token for even voting power as the value changes per epoch), chainlink smart contract (will need to be audited perhaps, may take a few weeks), on-chain voting (more robust, governor bravo). Decisions will be made in time.
Governance can have the ability to change its own structure. Holders and stakers could veto decision from multi-sig wallets. DAO budget 21% on the first year, hopefully, it is not needed entirely at once.

DAO Vesting & Minting Power

DAO can mint up to 2% per year in the future if decided to sustain the system. DAO will unlock 1.5% upon launch for paying for whatever is needed at the start and pay per epoch the stakers.

Community's Questions & Answers:

Q: Why do we need to offer $PSP to the market maker?

A: For the MM it will offer even more of an incentive to provide liquidity which will provide better swap prices and better prices for users. This should create a network effect that is self-sufficient.

Q: How does the vote proposal will take place?

A: We want to include stakers and holders and figure out the implementation so not sure yet on a time table.

Q: How has MVB program influenced ParaSwap?

A: Has not affected ParaSwap as ParaSwap is fully decentralized.

Q: Will $PSP have any future utility in ParaSwap?

A: This is still the early game for ParaSwap and integrations of the token $PSP will be introduced in time perhaps with market makers and incentives.

Q: Does the DAO have full control over the fees gathered?

A: Yes! Starting November 22 the DAO will be live. The model will be described and discussed in time.

Q: Will we be able to see the PMMs in staking?

A: Essentially no. Most remain anonymous or are under an NDA.

Q: Can anyone become a PMM?

A: We would like quality PMMโ€™s and must have skills and be able to build a good model. In time this will become permissionless.

Q: Can you tell us more about external nodes?

A: In the long term DAO vision we would like to have anyone run a node but that will take years of development.

Q: How do we propose ourselves for governance?

A: There will be the ability in Tally or we will create a UI.
Last modified 13d ago