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Incentive Reward Program for Governance Rights

At ParaSpace we recognize the critical role our community and users play in building and shaping the future of our platform. The community’s continued support and participation are invaluable to us especially as we drive innovation in NFT Finance, Decentralized Finance, and smart contract security. Our governance token will form a critical part of complete our move towards a Decentralized Autonomous Organization.

ParaSpace Focuses on Security and Re-Doubles Efforts to Protect User Assets

From the start we designed the protocol from the ground up to protect users as much as possible. We conduct internal and external audits for every feature before launch and have audited the platform in its entirety with different firms. Our auditors include highly-regarded security firms and community members in Secure3, Slowmist, Veridise, Certik, and 0xQuit.
We have taken significant steps and allocation of funds to completely overhaul our security processes from operations to development. Part of the security overhaul includes hiring a Head of Solidity and Security, making additional hires for a dedicated solidity team to monitor transactions interacting with our contract 24/7, building a protocol monitoring system in partnership with BlockSec, and increasing our bug bounty sizes. In addition, we are developing multiple security enhancements to roll out with the protocol in the coming weeks.

Rewarding Users for Their ParaSpace Activity with Governance Rights

All users affected by the protocol freeze will be rewarded with an NFT that can be redeemed for future ParaSpace tokens. For users who choose to continue to help us rebuild, we’d like to express our gratitude by offering a reward program that recognizes their continued contributions to the protocol.
By participating in our reward program, users will be eligible for governance tokens and rights that reflect their level of participation and contribution. We believe that offering governance tokens and a tangible stake in the protocol is the best way to align our interests with the community and provide the greatest value over time.
In addition, we will be boosting the reward points users earn up to 300% until the end of Quarter 2 (June 30th, 2023). We plan on expediting the process of launching our governance token once we finish our core product and feature development. This will help ensure that users who have contributed the most to the protocol are the ones who ultimately receive the most voting rights over the protocol.

Activities Which Qualify Users for Governance Tokens

Users’ actions and activities are rewarded with points that will be redeemed for ParaSpace governance tokens via airdrop when the token launches.
  • Borrowing and Lending
    • Supplying ERC-20 and/or ERC-721 assets to ParaSpace
    • Borrowing ERC-20 assets from the ParaSpace protocol
    • Performing liquidations for accounts and tokens in Liquidation
  • $APE Staking Actions
    • Supplying NFTs and $APE to staking Pools
    • Borrowing $APE to Stake
    • Create $APE Listing for Share Pool
    • Create NFT Listing for Share Pool
  • Market Place Actions
    • Buying on Credit
    • List NFT's for sale on ParaSpace marketplace
    • Place bids on ParaSpace for NFT's

Formulas Used to Calculate Points Rewarded

See below for fuller formulas/algorithms we will use to calculate a user's governance points score. Note that we may adjust these formulas to also take into account any new features/products that ParaSpace ships in the future:
Incentivizing Token Supply, Borrow, and StakingMu(∑i=1i∫tTi×Vi×wi dt)Incentivizing \ Token \ Supply, \ Borrow, \ and \ Staking \\ M_u(\sum_{i=1}^i\int^t T_i \times V_i \times w_i \ dt)
Marketplace Buy/Bid with Credit and ListingsMu(∑i=1iTi×Vi×wi)Marketplace \ Buy/Bid \ with \ Credit \ and \ Listings \\ M_u(\sum_{i=1}^iT_i \times V_i \times w_i)
LiquidationsMu(∑i=1iTi×Vi×wi×(1−Bi))Liquidations \\ M_u(\sum_{i=1}^iT_i \times V_i \times w_i \times ( 1- B_i))
​
MuM_u
: Multiplier for Externally Owned Address (EOA)
uu
 if applicable. The default is 1 unless the user has a multiplier as provided by Protocol.
​
TiT_i
: Token
ii
 which can reflect either Fungible or Non-Fungible tokens as supplied to and borrowed from the ParaSpace protocol.
​
ViV_i
: The valuation of
TiT_i
 in ETH. For Non-Fungible Tokens this will be set at the floor price (
FPiFP_i
) of the token and will include any trait boosts as offered on ParaSpace. For Fungible tokens this will be the
Ti/ETHT_i/ETH
 exchange rate. For liquidations
ViV_i
 will represent the liquidation price before the liquidation discount.
​
wiw_i
: Weight
ww
 of token
ii
. The protocol will incentivize the supply of higher-value and strategic NFT collections and/or Fungible Tokens.
​
FPiFP_i
: The Floor Price of Non-Fungible Token
ii
 in ETH.
​
BiB_i
: Liquidation bonus of token
TiT_i
 for Fungible tokens. For Non-fungible token
TiT_i
,
BiB_i
 will represent the value
FPi−ViFPi\frac{FP_i-V_i}{FP_i}
. NB:
BiB_i
 can be a negative number if the liquidation price for an NFT is above the collection
FPiFP_i
 including Trait Boost multiples.
​
tt
: Time
tt
 as measured in days token
TiT_i
 is supplied to the ParaSpace protocol.
​
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