ParaSwap Airdrop Only Reaches 20k Users

Monday, November 15, 2021

Quick Take

  • Paraswap launches $PSP token airdrop, but less than 2% of wallets on the exchange are eligible.

  • MetaMask works with Ledger and releases fix for Chromium connectivity issues.

  • Uniswap adds support for single basis point liquidity pools to help reduce slippage on stablecoins.

  • Argent releases Argent X, its first StarkNet browser wallet.

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Paraswap Airdrops Only Reaches 20k Users

Decentralized exchange aggregator Paraswap has announced the launch of its native $PSP token. The token distribution includes a 7.5% airdrop allocation, which equates to 150 million tokens out of the token supply of two billion. Paraswap received backlash after only 20k users out of 1.3 million wallets are eligible for the airdrop. That accounts for less than 2% of total wallets on the exchange.

ParaSwap founder Mounir Benchemled says the exchange implemented a heavy filtering process that filtered users who interacted multiple times over the last six months. The strict filtering aimed to exclude airdrop farmers, however the process ended up excluding many active users. The snapshot for the airdrop was taken on October 8th, further weeding out recent airdrop farmers.

The exchange was also criticized for its token distribution in which more than double the airdrop amount, or about 16.4%, is allocated to pre-seed and seed investors. 17.6% is allocated for core team members, of which there are only twelve. 51% of tokens are allocated for the ecosystem. Paraswap’s $PSP token is coined as a utility and governance token as it can be used for staking in ParaSwapPools and for voting on governance proposals.

MetaMask Fixes Ledger Connectivity Issues

MetaMask has partnered with Ledger to improve a known connectivity issue which was caused by an update in Chromium-based browsers earlier this year. MetaMask had developed an interim solution that required bridging to the Ledger Live desktop application. However, users continued to struggle with the cumbersome process.

MetaMask has now built a new Ledger integration on Chromium browsers known as WebHID. To activate the new connectivity option, users must update MetaMask to version 10.5.0 and also update their Ledger firmware. Once updated, users can switch from Ledger Live to WebHID on their MetaMask advanced settings page.

The new integration removes the need for the Ledger Live desktop application and provides a smoother connectivity process. MetaMask says they will continue to work with Ledger on further design and user experience improvements.

Uniswap Adds 0.01% Fee Tier Pools

Uniswap has added support for liquidity pools with a liquidity provider fee of just 1 basis point (0.01%). The feature was added after a governance proposal for the functionality successfully passed. The protocol has already supported 5, 30, and 100 basis point fees.

The idea behind the single basis point liquidity pools is to help Uniswap compete in stablecoin to stablecoin pairs. Curve and DODO make up the majority of the stablecoin liquidity pool market. DODO already supports liquidity pools with one basis point. The single basis point pools offer traders with low slippage on stablecoin pairs.

Ethereum-Based Holdings Rise Among Institutions

Large institutional holdings of Grayscale Ethereum Trust shares, also known as ETHE, have risen 19% compared to the last quarter. Institutional investment firms with at least $100 million in assets under management reported an aggregate of $74.6 million in Grayscale Ethereum Trust holdings. 

ETHE is an investment type that gives investors exposure to ETH in the form of a security. In the latest batch of SEC filings, 10 new firms disclosed that they had ETHE in their portfolios. Ark Investment Management owns over 40% of all ETHE shares, worth about $31 million.

Argent Releases StarkNet Browser Wallet

Wallet provider Argent has released its first StarkNet browser wallet, coined as Argent X. The wallet is currently only available as a developer tool for developers to integrate into their decentralized applications. When StarkNet launches the Alpha version of its protocol, Argent will likely add support for StarkNet to its mobile wallet. Argent currently has a zkSync layer2 wallet in beta which will soon be rolled out to all users. StarkNet is an Ethereum ZK-rollup scaling solution developed by StarkWare. Argent plans to publish the StarkNet browser extension to Chrome Web Store.