Questions:

1. Once people acquire PSP tokens what do they do with them?
2. How long do they hold them for?

What is Paraswap?

Paraswap is a DEX Aggregator, similar to 1inch or 0x Matcha. In short, Paraswap uses a search engine to find the best trading rate on multiple DEXs, which provides users with the least trading cost and the most value possible.

It is imperative to understand that, DEX Aggregators like Paraswap do not necessarily own any liquidity pool. Instead, they use liquidity from other AMM DEXs and charge a small amount of fee, or any slippage caused afterwards.

What Is PSP Token?

On November 15th 2021, the ParaSwap Foundation released the PSP token to further increase the decentralization and efficiency of the protocol. About 20,000 users received the airdrop of ParaSwap tokens, worth more than $240 million at the time.

Number of holders:

There are currently 3630 PSP token holders on the Ethereum network.

As you can see, this amount is very small. In my opinion, due to the high cost of the Ethereum network, most people are reluctant to keep tokens in it. Because the PSP token is located on other lower gas fee blockchains such as Polygon and Binance Smart Chain, those who want to hold it use these networks.

Once people acquire PSP tokens what do they do with them?

In the below chart, I used ethereum.udm_events to found the action types and their volume.

How long do they hold them for?

Here, I found the minimum date each account has PSP. Also found the maximum date each account has PSP. Then subtracted them. now we have the time that each wallet held PSP.

As you can see most of the tokens (62%) transfer to other wallets or exchanges. rest of them include some exec messages.

As you can see, most of the users (more than 3000) held tokens for more than 128 days. more than 1500 users did not even hold it for a day.