In this article, you will learn what is Paraswap airdrop. Cryptocurrency airdrops are promotional tools that allow startups to reach a wider audience, by giving away tokens to loyal users. ParaSwap is the Expedia for crypto users who wants to exchange their tokens and they planned an airdrop for the Paraswap community.
What is Paraswap Airdrop?
ParaSwap, one of the most popular distributed exchange aggregators, recently introduced its governance token PSP and airdropped them to 20.000 eligible Ethereum wallets. novel approach in identifying Airdrop eligible accounts. While some praised the novel approach as a game changer, several users took to Twitter to criticize it as rigged and called for a boycott.
On November 15. when ParaSwap announced the launch of PSP token airdrop it had approximately 1.4 Million wallets interacting with its application. Everyone who has used ParaSwap in the past rushed to find out if they are eligible for the tokens. However, of the major Were disappointed to learn they weren't eligible. Only 20.000 of its 1.4 million users were made eligible for the airdrop. Twitter erupted in anger and some people called the airdrop rigged.
ParaSwap airdropped a total of 150.000.000 PSP to early users of the platform. Early active users who've interacted with the platform by October 8th 2021 were eligible to claim the airdrop.
Paraswaps' Airdrop Eligibility Algorithm
When many users and airdrop hunters discovered that they were not eligible for ParaSwap's airdrop, they vented their anger on social media. In response to the outcry, ParaSwap wrote a blog post explaining how they eliminated airdrop hunters who game the usered system and loyali who are helping it grow.
In a simple thread on Twitter, their airdrop eligibility algorithm was explained by the engineer who designed it. Here is a summary of the criteria
- User should have done at least 6 txs on ParaSwap on any network in the last 6 months (before 8th Oct).
- User should either have 50 tx or have a min native token balance (0.028 ETH or 0.25 BNB or 20 Matic or 0.9 AVAX) on the network you used ParaSwap.
- If the user happens to have sent native tokens (ETH, Matic, etc) to other wallets which are also eligible for airdrops and the group of such wallets is bigger than 5 then your wallet should have a portfolio balance (Native Token + known ERC20 ) greater than $200.
Paraswap Airdrop Eligible Users
Apart from applying harsh filters on identifying airdrop eligible users, ParaSwap also assigned points to the eligible accounts to allocate a number of PSP tokens should be given to them. The formula for assigning points is as below
- If total transaction count > 10 => +1 pt.
- If Max USD value in a single transaction > 100$ => +1 pt, > 1K$ => +2 pts, > 10K$ => +3 pts, > 100K => +4pts.
- If total volume done on ParaSwap > 100$ => +1 pt, > 1K$ => +2 pts, > 10K$ => +3 pts, > 100K => +4pts.
- If used ParaSwap in more than 1 network: +1pt.
- Wallets are categorized into one of three buckets according to their score. Anyone with more than 7 points received 10.400 PSP tokens, those with between 3 and 7 points received 7.800 tokens, and the rest of the eligible accounts were given 5.200 tokens
Bottom Line
ParaSwap executed its airdrop very well – instead of giving tokens to all users who used it just to test it, they wrote a brilliant algorithm and identified loyal users. This article is about what is Paraswap airdrop.
