# Social Escrow System and ParaBoost

Social Escrow PSP (sePSP) is a novel system designed to allocate the accumulated protocol fees to the users who add value and perform services to Velora.

The ParaBoost represents the incentive boost users receive on their stake from performing value-adding actions and providing services for the Protocol.

### Calculating your ParaBoost

The formula used for the ParaBoost Score is at follows:

<figure><img src="https://content.gitbook.com/content/00m5fvd2v8lSi8DIgDVo/blobs/VTStlb27jMofsgVj0mFm/z6mkXCm0GImV_JEH12O73yCskRpsUNxqPjm7E-s7nu_P-NExwG582rxuHXsVHetNd7Tc9SbItnVCLB4hB5ZMm-d_9kvsD7RewCvuuKRtAg5flUduTfD1AnMPTUdyygFVpYe5yeHfGnHv1PAVxbgzmbcr6tzhLlxdp7NztQ0D6fOOwKiiXYutvZRhvUS4JQ.png" alt=""><figcaption></figcaption></figure>

In summary, the formula can be seen as two steps:

1. **Stake Score calculation**: First, the PSP staked in sePSP2 is multiplied by 2.5x, and this is added to the PSP staked in sePSP1.  For example, if you have 1000 PSP staked in sePSP2 and 1000 PSP in sePSP1, you final stake score would be (1000 + 2.5 x 1000 ) = 3500 Stake Score
2. **ParaBoosts calculation**: Once the stake score is calculated, every achieved ParaBoost is applied. For example, if you received a 10% ParaBoost, your stake will be multiplied by 1.1.

Once the final ParaBoost is calculated, the ParaBoost Share relative to other stakers is compared, and rewards are split according to each person's share.&#x20;

### ParaBoost categories

As of the time of writing, the value-adding actions considered for sePSP are:

* **Pooling**: liquidity provision through sePSP2 for the amount of time an asset is kept without requesting a withdrawal\
  ![](https://lh5.googleusercontent.com/jamGjMjnYZbcnq6U5Zp0SxNWNbqzA5mU52lz58gjxQjc3NsHq4BpOqBECs3HL_jKiwx607ITcfbwOdFas_9xbP3Kl0GmSLdK5zIyAyZ1LhEowk7Bvjaec_j3Tm-kbEF1wi6f0zfkSGNJvYeuqe5GyGbi5A3LNVdQE_Eq_-nTVbmrYdgxs7bgHR4mF0hnYw)
