Presenting ParaSwap: Revolutionizing Fee Collection
Over the last months, we forged a dynamic partnership with ParaSwap. Our efforts have given rise to a seamlessly integrated ecosystem, engineered to create a customizable solution to collect fees across the blockchain landscape.
A glimpse into our work
After an extensive audit we learn’t that one of the most critical challenges at ParaSwap was the countless amount of hours they would have to dedicate to manually check for available opportunities to swap their protocol fees.
We set up a custom environment for ParaSwap dedicated to Fee Collection and Distribution. With Mimic’s platform, ParaSwap was able to collect currencies from various networks, convert them into wETH, and automatically distribute them to the community when the trigger conditions were met.
Kudos to ParaSwap team, who lent their expertise to this synergy 👏🏻
Let’s dive into…
Mimic’s Fee Collection environment
Mimic fee collector draws components from the Mimic Platform to allow teams to optimize their collection and distribution workflow of assets.
One of the biggest challenges is the efficient handling of fees collected on several tokens and spread across networks — a task that requires continuous monitoring, the readiness to execute swaps at the best moment, and an adequate strategy to move funds into a single destination factoring in associated costs. It’s a meticulous process, nearly impossible to execute manually due to the diversity of tokens, prices, and networks.
Helping ParaSwap collect, convert and distribute their fees with ease
The ParaSwap team encountered challenges when attempting to manage complex tasks manually. Not only it was time-consuming and brought high costs, but it also posed substantial risks. To overcome these obstacles, Mimic developed a custom environment for ParaSwap.
Our platform collects currencies from various networks, converting them into a desired destination token (eg. WETH), and automatically distributes them to the community when the trigger conditions are met.
We support their operations across 7 chains with our relayer network. When each token reaches the balance configured, we swap them to WETH. ParaSwap has epochs of 28 days; at the end, we execute a withdrawal back to the DAO.
Mimic’s ability to streamline fee collection across multiple chains empowers projects to focus on their core activities while effortlessly consolidating their earnings. This not only simplifies financial operations but also enhances transparency and efficiency in managing protocol revenues.
Achieving remarkable results
Our collaboration with ParaSwap started in February 2023, initiating the fee collection journey. Within a span of less than six months, we were able to:
- Fully automate to reduce manual intervention and risks associated with it.
- Modify the existing system to improve efficiency and simplify distribution, including switching the swapping process to WETH instead of the wrapped native token, and automating the collection and conversion of fees from external partners.
- Improve the bridging process by automating it across all seven networks.
Therefore accomplishing:
- +3K Automated tasks to date
- +5% Slippage saved
- +2.4M Number of simulations
Along the road of total automation, the value of Mimic’s solution was acknowledged by the ParaSwap community after posting a proposal in June to inform about recent updates to the environment. With an overwhelming 99.9% vote, they extended our mandate to automate in the forthcoming epochs.
Check the PIP-34 details here: Snapshot Proposal 📸
We remain committed to revolutionizing decentralized finance, maximizing efficiency, and mitigating risks. Stay tuned for more groundbreaking updates in ParaSwap! 🚀
Let’s redefine possibilities!
About Mimic
Mimic is a platform that revolutionizes the way users engage with DeFi by offering a powerful solution to model and automate a wide range of operations in a trustless manner, focusing on strategic decision-making. Trusted by industry leaders like Trust Wallet, Balancer, ParaSwap, DXdao, and Decentraland, Mimic has facilitated over 300K transactions, executed 5M runs, and managed a transaction volume exceeding 300M USD.
If you are interested in diving deeper into Mimic, feel free to reach us! We’re thrilled to welcome new clients and take their DeFi operations to the next level!
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