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Token Overview
Find here the key information about PSP, the staking model & ParaSwap's governance
On November 15th 2021, the ParaSwap Foundation released the PSP token to further increase the decentralization and efficiency of the protocol.
This page provides a comprehensive overview of the key pieces of information pertaining to the PSP token, in which stakers work in synergy with market makers to make ParaSwap even better for traders, dApps, and protocols.
The staking model is inspired by the market maker rebates model used by many order book-based exchanges as well as proof-of-stake blockchains, where stakers vote on validators so as to maximize the shared block rewards.

Supply Overview

PSP token distribution
The total supply will be 2 billion PSP tokens, with 7.5% (150M PSP) given to existing active users to bootstrap the community.

Initial Distribution

A total of 150M PSP (7.5%) have been allocated to an airdrop rewarding engaged users of ParaSwap. They are claimable by any eligible wallet, with no time limit.

Investor and Team Vesting

Token allocation unvesting schedule
Investorsโ€™ tokens are subject to 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).

Staking PSP

On top of the aggregation of decentralized exchanges, ParaSwap includes the liquidity provided by private market makers, represented by the ParaSwapPools in the app. The main benefit is providing MEV resistant and 0 slippage swaps, thus introducing efficiency to DeFi trading.
PSP tokens holders can stake on market makers to add weight to their rewards, pushing the market makers to deliver more competitive rates. At the end of each epoch (14 days) the rewards are spitted between market makers and stakers.

PSP Token Details

The PSP token contract address is 0xcAfE001067cDEF266AfB7Eb5A286dCFD277f3dE5.
PSP staked on ParaSwapPools are represented 1:1 by tokens following this nomenclature: sPSP_PPX where X is the pool number.

PSP Liquidity

There are currently no liquidity mining incentives related to the PSP token. The main liquidity pools for PSP are currently:

Governance

The ParaSwap DAO is currently operating in a "proto-governance" mode. The community is gathering (on Discord) to establish its needs and discuss together what the governance structure should look like.
โ€‹The first community call is scheduled for Saturday 20 Nov at 5PM GMT+1. The governance process will start shortly after.
Once formalized, the DAO will have the tools and means at its disposal to fulfill its missions.
This content exists for informational purposes only. It does not constitute investment advice.
Last modified 3d ago
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