[RFP]: Introducing Flexible Pswap Rewards for vesting #98
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RFP
Request for Proposal
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It would be a good idea to build fees into this tool that are charged directly to the PSWAP to speed up its burn. |
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Proposal Due Date
08/01/2024
Proposal Overview
The proposal for revising vesting PSWAP tokens to allow stakers to sell a portion of their pending rewards on a secondary market at a discount offers several potential benefits to the SORA ecosystem:
Liquidity Enhancement: By enabling stakers to sell a portion of their pending vesting rewards on a secondary market, the proposal increases liquidity for PSWAP tokens. This liquidity can improve price stability and trading volume on the secondary market, making PSWAP tokens more attractive to investors and traders.
Flexible Reward Distribution: The proposal allows stakers to have greater flexibility in managing their vesting rewards. Instead of waiting for the full vesting period to receive their rewards, stakers can choose to monetize a portion of their rewards immediately by selling them on the secondary market, providing them with access to liquidity when needed.
Market Efficiency: Allowing stakers to sell their pending vesting rewards on a secondary market creates an additional avenue for price discovery and market efficiency. It incentivizes market participants to actively trade PSWAP tokens, leading to more efficient price formation and a more liquid trading environment.
Yield Generation: Users who hold vesting PSWAP tokens but do not wish to sell them on the secondary market can choose to loan out their tokens back to the Polkaswap platform in exchange for a yield. This provides an opportunity for users to earn additional income on their holdings while contributing to the liquidity of the PSWAP token market.
Integration with SORA Ecosystem: The proposal can seamlessly integrate with the broader SORA ecosystem, leveraging its interoperability features and decentralized finance (DeFi) capabilities. PSWAP tokens serve as a utility token within the ecosystem, enabling users to participate in governance, liquidity provision, and other activities.
Incentive Alignment: By allowing stakers to sell a portion of their pending vesting rewards, the proposal aligns the incentives of stakers with the broader goals of the SORA ecosystem. Stakers can benefit from immediate liquidity while still contributing to the security and stability of the network through their continued participation in staking.
Overall, the proposal for revising vesting PSWAP tokens to enable stakers to sell a portion of their pending rewards on a secondary market and loan out their tokens for yield provides benefits such as liquidity enhancement, flexible reward distribution, market efficiency, yield generation, integration with the SORA ecosystem, and incentive alignment.
Proposal Goals
The goal of the proposal to revise vesting PSWAP tokens to allow stakers to sell a portion or all of their pending rewards on a secondary market or loan out their tokens for yield is multifaceted and addresses several key objectives:
Enhanced Liquidity: One of the primary goals is to increase liquidity for PSWAP tokens by providing stakers with the option to sell a portion of their pending vesting rewards on a secondary market. This addresses the problem of limited liquidity in the PSWAP token market, making it easier for investors and traders to buy and sell PSWAP tokens at fair prices. This also creates more incentives for participants to provide more liquidity.
Flexible Reward Management: The proposal aims to give stakers greater flexibility in managing their vesting rewards. Instead of being locked into a fixed vesting schedule, stakers can choose to monetize a portion of their rewards immediately by selling them on the secondary market. This solves the problem of illiquidity associated with traditional vesting schedules, where stakers may have to wait for an extended period to access their rewards.
Market Efficiency: By allowing stakers to sell their pending vesting rewards on a secondary market, the proposal promotes market efficiency and price discovery for PSWAP tokens. It incentivizes active trading and participation in the PSWAP token market, leading to more accurate price formation and a more liquid trading environment.
Yield Generation: Another goal of the proposal is to provide stakers with an opportunity to earn additional income on their holdings by loaning out their tokens for yield. This addresses the problem of idle assets by allowing stakers to put their PSWAP tokens to work and earn a return on their investment, thereby maximizing the value of their holdings.
Integration with DeFi Ecosystem: The proposal aims to integrate PSWAP tokens into the broader decentralized finance (DeFi) ecosystem by enabling yield-generating opportunities such as lending. This aligns with the broader goals of the SORA ecosystem to facilitate decentralized financial services and empower users to participate in various DeFi activities.
Overall, the goal of the proposal is to enhance the liquidity, flexibility, and utility of PSWAP tokens while promoting market efficiency, yield generation, and integration with the broader DeFi ecosystem within the SORA ecosystem. By addressing these objectives, the proposal aims to improve the overall user experience and ecosystem dynamics surrounding PSWAP tokens.
Scope of Work
Smart Contract Development:
Develop smart contracts to facilitate the sale of pending vesting rewards on a secondary market and the loaning out of PSWAP tokens for yield.
Implement functionality for stakers to lock their pending vesting rewards and issue tradable tokens representing their vested and tradable portion.
Integrate lending protocols or develop custom lending contracts to enable users to loan out their PSWAP tokens and earn yield.
Protocol Design and Development: Design the protocol for managing vesting rewards, including mechanisms for calculating vested amounts, issuing tradable tokens, and updating vesting schedules.
Develop protocols for trading pending vesting rewards on a secondary market, including order matching, settlement, and custody mechanisms.
Implement lending protocols or integrate with existing DeFi lending platforms to enable users to loan out their PSWAP tokens and earn yield.
User Interface Enhancements: Update the user interface of the staking platform to provide stakers with options to manage their vesting rewards, including selling a portion on a secondary market and loaning out tokens for yield.
Design intuitive interfaces for buyers on the secondary market to purchase pending vesting rewards and for lenders to provide liquidity by loaning out PSWAP tokens.
Ensure seamless integration with the existing user interface of the SORA ecosystem to provide a cohesive user experience.
Security and Risk Management:
Conduct comprehensive security audits of smart contracts, protocols, and user interfaces to identify and mitigate potential vulnerabilities and security risks.
Implement risk management mechanisms to safeguard users' funds and protect against potential exploits or attacks on the platform.
Develop emergency protocols and procedures to respond to security incidents or unforeseen events effectively.
Regulatory Compliance and Legal Considerations:
Conduct legal research and analysis to ensure compliance with relevant laws and regulations governing securities trading, lending activities, and financial services.
Develop compliance frameworks and risk management policies to address regulatory requirements and mitigate legal risks associated with trading and lending PSWAP tokens.
Obtain necessary licenses or approvals from regulatory authorities to operate as a trading platform and lending platform and offer financial services to users.
Community Engagement and Education: Engage with the community to gather feedback, address concerns, and promote awareness of the new features and opportunities available for managing vesting rewards.
Provide educational resources, tutorials, and documentation to help users understand how to buy, sell, and loan PSWAP tokens and navigate the new features seamlessly.
Foster a vibrant and engaged community of stakers, traders, lenders, and developers to support the growth and adoption of the new features within the SORA ecosystem.
Market Adoption and Integration: Develop marketing strategies and campaigns to promote the new features and attract users to participate in trading and lending PSWAP tokens.
Integrate the new features seamlessly with existing components of the SORA ecosystem, including the staking platform, wallet, and other DeFi protocols.
Collaborate with other projects and platforms within the Polkadot ecosystem to leverage synergies and expand the reach of the new features.
Overall, implementing the proposal to revise vesting PSWAP tokens to enable stakers to sell a portion of their pending rewards on a secondary market or loan out their tokens for yield requires a coordinated effort involving smart contract developers, protocol engineers, user interface designers, security professionals, legal experts, community managers, and marketing specialists. It also requires thorough testing, compliance with regulatory requirements, and ongoing education and engagement with the community to ensure the successful integration of the new features into the SORA ecosystem.
Current Roadblocks and Barriers to Success
While the proposal to revise vesting PSWAP tokens to enable stakers to sell a portion or all of their pending rewards or loan out their tokens for yield offers numerous benefits, there are several considerations and potential challenges to be mindful of:
Market Impact: Allowing stakers to sell a portion or all of their pending rewards on a secondary market will not create downward pressure on the price of PSWAP tokens, especially if there is a significant influx of sell orders. To sell rewards which are not yet vested you will be transferring or selling the ownership of credited tokens to another wallet (for vesting) which will NOT create a sell pressure on PSWAP. So in market impact there is no barriers or difficulties.
Risk Management: Facilitating the sale and lending of PSWAP tokens introduces additional risk factors, including counterparty risk, market volatility, and liquidity constraints. Proper risk management mechanisms must be implemented to protect users' funds and ensure the stability of the platform.
Regulatory Compliance: Trading and lending activities involving PSWAP tokens may be subject to regulatory scrutiny and compliance requirements in different jurisdictions. It's essential to navigate regulatory challenges effectively and ensure compliance with relevant laws and regulations to avoid legal risks and regulatory enforcement actions.
Security and Trust: The security of the platform and the integrity of smart contracts and protocols are paramount. Any vulnerabilities or exploits could result in financial losses for users and damage to the reputation of the SORA ecosystem. Robust security measures and continuous monitoring are necessary to maintain trust and confidence in the platform.
User Education and Support: Providing clear and comprehensive guidance to users on how to participate in selling and lending activities is crucial. Users need to understand the risks, benefits, and procedures involved in managing their vesting rewards effectively. Ongoing support and education are essential to ensure a positive user experience and minimize errors or misunderstandings.
Liquidity Management: Managing liquidity on the secondary market and lending platform is essential to ensure smooth trading and lending operations. Adequate liquidity provision, order matching mechanisms, and risk controls are necessary to maintain a healthy and efficient market and prevent liquidity shortages or price manipulation.
Community Engagement: Building and maintaining community trust and engagement is vital for the success of the proposal. Transparent communication, responsiveness to feedback, and inclusive decision-making processes can foster a supportive and collaborative community ecosystem that contributes to the long-term success of the platform.
Evaluation Metrics and Criteria
Technical Implementation:
Smart Contracts: All necessary smart contracts for facilitating the sale and lending of PSWAP tokens are developed, audited, and deployed on the blockchain.
Protocol Development: The protocol for managing vesting rewards, trading on the secondary market, and lending activities is designed, implemented, and tested for efficiency, security, and reliability.
User Interface: The user interface of the staking platform and other relevant components is updated to provide users with options to manage their vesting rewards, including selling and lending activities.
Regulatory Compliance: Compliance Framework: A comprehensive regulatory compliance framework is established, addressing legal requirements for trading, lending, and financial services involving PSWAP tokens.
Licenses and Approvals: Necessary licenses or approvals from regulatory authorities are obtained, ensuring compliance with applicable laws and regulations governing securities trading and financial activities.
Security and Risk Management: Security Audits: Smart contracts, protocols, and user interfaces undergo thorough security audits to identify and mitigate potential vulnerabilities and security risks.
Risk Management Mechanisms: Robust risk management mechanisms are implemented to protect users' funds and ensure the stability and security of the platform, including measures for addressing counterparty risk, market volatility, and liquidity constraints.
User Education and Support: Educational Resources: Comprehensive educational resources, tutorials, and documentation are provided to help users understand how to participate in selling and lending activities effectively and manage their vesting rewards.
Customer Support: Adequate customer support channels are established to address user inquiries, provide assistance, and resolve issues related to selling and lending activities.
Liquidity Provision: Market Depth: Adequate liquidity is provided on the secondary market and lending platform to ensure smooth trading and lending operations, with mechanisms in place to manage liquidity shortages and prevent market manipulation.
Incentive Mechanisms: Strategies to incentivize liquidity provision and active participation in selling and lending activities are implemented to encourage market participation and ensure a vibrant ecosystem.
Community Engagement: Community Outreach: Transparent communication and engagement with the community are maintained throughout the implementation process, with regular updates, feedback mechanisms, and opportunities for community input.
Adoption and Integration: The proposal is successfully integrated into the broader SORA ecosystem, with seamless interoperability with existing components and collaboration with other projects and platforms within the ecosystem.
Once these criteria are met, the proposal to revise vesting PSWAP tokens to enable selling and lending activities can be considered "done" and successfully integrated into the SORA ecosystem.
Submission Requirements
Alignment with Proposal Objectives: The submission should clearly demonstrate how it aligns with the objectives outlined in the proposal for revising vesting PSWAP tokens. It should address the goals of enhancing liquidity, providing flexible reward management options, promoting market efficiency, enabling yield generation, and integrating with the broader SORA ecosystem.
Technical Feasibility: The submission should provide a detailed technical plan for implementing the proposed changes to the vesting PSWAP token system. It should demonstrate a clear understanding of the technical requirements and challenges involved and outline a feasible roadmap for implementation.
Regulatory Compliance: The submission should address regulatory considerations and compliance requirements associated with the proposed changes. It should outline plans for navigating regulatory challenges effectively and ensuring compliance with relevant laws and regulations governing trading, lending, and financial services involving PSWAP tokens.
Security and Risk Management: The submission should prioritize security and risk management, with plans for implementing robust security measures and risk management mechanisms to protect users' funds and ensure the stability and security of the platform. It should address potential vulnerabilities and security risks associated with the proposed changes.
User Experience and Support: The submission should prioritize user experience and provide plans for enhancing the user interface, providing educational resources, and offering customer support to help users understand and navigate the changes effectively. It should ensure a positive user experience and minimize errors or misunderstandings.
Liquidity Provision: The submission should address plans for managing liquidity on the secondary market and lending platform to ensure smooth trading and lending operations. It should outline strategies for incentivizing liquidity provision and preventing liquidity shortages or market manipulation.
Community Engagement: The submission should demonstrate a commitment to community engagement and participation, with plans for transparent communication, feedback mechanisms, and opportunities for community input throughout the implementation process. It should foster a supportive and collaborative community ecosystem that contributes to the success of the proposed changes.
By fulfilling these criteria, we will be paving the way for the successful implementation of the proposed changes to the vesting PSWAP token system within the SORA ecosystem.
Submission Method
Blockchain: Mainnet
Project Due Date
09/12/2024
Budget Amount
This is at the discretion of the development team.
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