📐ParaSwap SRB

PSP Staking Rewards Benchmark (PSPSRB™) Methodology

PSPSRB is a benchmark that represents the annualized staking rate for the PSP token. Due to the tokenomics of this token, its value is determined by the reward rate of the most popular reward option, which holds more than the supermajority of the locked tokens.

PSPSRB is calculated and published by Staking Rewards via the PSP Profile and Staking Data API.

$$PSPSRB = (pr * rs)/ iv * t_y / t_e$$

Formula key	Metric name	Description
$pr$	Predicted Rewards	The prediction of all fees collected on the protocol during the current epoch. Predicted rewards are influenced by individual reward shares.
$rs$	Reward Share	The adjusted share of the reward option.
$iv$	Investment Value	The value deposited.
$t_y$	Year Constant	365d
$t_e$	Epoch Constant	28d

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Paraboost Score:

The paraboost score is a multiplier that represents your share of the reward distribution when compared to the total paraboost score of all stakers.

$paraboostScore = tokenScore * myBoost$

$myBoost = tb1 * tb2 * mb * pb * bb * rb1 * rb2$

$tokenScore = sePSP1 + 2.5 * sePSP2$

Metric	Boost name	Description
sePSP1 $f(x) = x * e^{2 pi i \xi x}$		The amount of staked PSP in the basic pool.
sePSP2		The amount of staked PSP in the boosted pool.
tb1	General Trading Boost	The more volume a user trades through ParaSwap, the bigger the boost.
tb2	Trading Boost Stable to Stable	Stablecoin to stablecoin trades provide different boost values. Harder to collect fees (less spread).
mb	Market Making Boost	Market makers, including limit orders participants, OTC, and RFQ (PMMs), are eligible for stake boost depending on filled orders volume.
pb	Pooling Boost	Liquidity provision through sePSP2 for the time an asset is kept without requesting a withdrawal. A minimum amount of 10k sePSP2 amount is required for it to be counted for the boost. The boost will be calculated using averages of the stake, and triggering an unstake request will reset the boost timer
bb	Balance Booster	Holders of a minimum of $100 worth of PSP in the user’s wallet on a single chain receive a 10% boost.
rb1	Referrer Boost	Trades made using a referral link will provide a 20% boost to the referrer.
rb2	Referral Boost	Trades made using a referral link will provide will receive a 10% boost on applicable trades.
(migration boost)	Migration boost	Boost bonus from migrating from PSP to PSP 2.0. (Not to be included in the calculator)

Boost values where none were presented:

tb1
tb2
mb
pb

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Revenue Share

$myRevenueShare = ps / ( tp + ps)$

Metric	Name	Description
ps	My Paraboost Score	The paraboost score for the current epoch.
tp	Total Paraboost	The total paraboost score from all staking users.

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Final APR adjusted to user input

We derive this formula from the starting formula and the revenue share:

$myBasicPoolAPR = pr * (userInput * pb) * ((plp1 +userInput) / (plp1 + userInput + 2.5 * plp2)/ (userInput * price) * t1 / e1$

$myBasicPoolAPR = pr * (2.5 * userInput * pb) * (2.5 * (plp2 +userInput) / (plp1 + 2.5 * (plp2 + userInput)/ (userInput * price / 0.8) * t1 / e1$

Formula key	Metric name	Description
pr	Predicted Rewards	The prediction of all fees collected on the protocol during the current epoch. Formula: Current epoch accrued revenue valued in USD at the moment of accrual + ( % remaining of the epoch * average of last 3 epoch's revenue)
rs	User Revenue Share	The user's revenue share.
userInput	User Input	Amount of tokens the user is willing to stake.
price	Price	The current price of the asset.
plp1	PSP in Basic Pool.	Amount of tokens locked on the basic pool reward option.
plp2	PSP in Boosted Pool	Amount of tokens locked on the boosted pool reward option.
t1	Days Constant	365d
e1	Epochs Constant	28d

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Data Sources:

• Indexed Ethereum Data via Dune.

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References:

• What is PSP 2.0

• How is the ParaBoost Calculated?

• What is the ParaBoost Share?

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Last updated on 05/23/2024