DEX ParaSwap aggregator launches its PSP token by performing a retroactive airdrop

ParaSwap gets its PSP token

Wen token ser? – After months of waiting from the DeFi community, the decentralized exchange aggregator (DEX) ParaSwap unveils its token, the PSP.

Intended to amplify the efficiency and decentralization of the protocol, the PSP token will play many roles within ParaSwap. The PSP token will initially be distributed in the form of an airdrop to the 20,000 active users of the aggregator.

In total, 2 billion PSPs will eventually be in circulation, and 150 million of them will be issued via the initial airdrop. This retroactive remuneration aims to fuel the growth of the protocol and to begin its governance by guaranteeing its first users the exclusive privileges linked to the possession of the PSP.

Thus, PSP holders can stake their tokens with market makers in order to increase their rewards. At the same time, this should encourage market makers to offer more competitive prices to ParaSwap users.

As the PSP is also a governance token, its holders will also be able to comment on the future directions of the protocol.

“We are excited to introduce a brand new model that rewards both stakers and market makers and makes ParaSwap a better exchange platform for users, dApps and protocols,” said Mounir Benchemled, Founder of ParaSwap. “With this new token, trading will become more efficient, transparent and scalable. It is the fruit of suggestions and feedback from the community and our team who take things to heart to build. “

👉 On the same theme – DEX ParaSwap aggregator joins the Avalanche blockchain ecosystem (AVAX)

ParaSwap future leader in its sector?

In strong competition with 1inch, another DEX aggregator, ParaSwap could, thanks to its PSP token, take the lead in this fierce battle for 1st place in terms of volume. 1inch has already had its token for a long time, and the various incentives attached to it have certainly helped the protocol to retain many users.

Thus, to attract users, ParaSwap will now reward market makers who feed ParaSwapPool, the platform’s own liquidity pool.

The rewards distributed to the pool of market makers depend on 2 factors:

The volume of trading carried out during an “Epoch” (every 30,000 blocks on Ethereum); The amount of PSP that the pool has received in staking from users.

This feature makes ParaSwap even more efficient, in particular by offering users swaps without slippage. In addition, if a pair of tokens does not have its own pool on ParaSwap, the protocol will automatically select the best possible DEX for the user, the one with the best exchange ratio and the least costly in fees.

At the time of writing, ParaSwap integrates the Ethereum, Polygon, Avalanche and Binance Smart Chain blockchains. Other blockchains could be supported in the near future by ParaSwap, so that the protocol continues its conquest of DEX aggregation.

👉 To go further – The Ledger Live application adopts DeFi by integrating the ParaSwap aggregator

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About the author: Clément Wardzala

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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have endeavored to share qualitative content so that the sector is democratized among everyone.
All articles by Clément Wardzala.

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