How does Parasail work?
DePIN draws tremendous interest and attention because of their potential to deliver networks of decentralized infrastructure and services that generate sustainable revenue from paying users. However, it is often hard and costly to build confidence and adoption for these decentralized hardware services. Without economic guarantee on reliable service levels, it is difficult to attract users and acquire paying customers. The promise of DePIN quickly fizzles without such demand and it becomes unsustainable to attract and maintain consistent supply of hardware and service providers.
This is hard for existing projects and even harder for new DePIN networks. Some networks require their service providers to provide stakes in their native tokens. This presents both a barrier to entry and a luxury that not many projects can count on.
Parasail aims to ease the difficulties for DePIN network while lowering the barrier for stakers through various ways.
Economic Security from Established Assets
However, there is significant idle capital or economic security from established assets on various more mature networks, in the forms of their native, staked, or restaked tokens. These are economic security from assets that are more established and trusted by others. There is strong potential for this economic security to be delegated to provide economic guarantee for DePIN services. These established assets can also earn a share of service payments or incentive rewards from participating DePIN projects, creating more use cases and demand for their assets.
DePIN Service Proofs as Source of Truth
Different DePIN may choose different proofs as sources of truth on their services. Parasail can work with multiple sources of truth for DePIN Service Proofs, from cryptographic verification, to optimistic challenges, and to third-party sources. DePIN projects can create Delegation Pools on Parasail with a reward policy to attract stakers, a payout policy to attract users, and a source of truth to determine whether the services have succeeded.
Onchain Rewards and Refunds for Users
Decision making for users to participate in various DePIN services can be further simplified with Parasail as users can look at how much assets have been restaked to provide service guarantee for a particular DePIN and where the source of truth is coming from. Users can try out DePIN services with greater confidence with on-chain refunds for failed services. Stakers can restake their assets to earn a share of revenue from paying users and rewards from DePIN projects. High-quality and highly demanded DePIN services can quickly stand out and acquire paying users efficiently. This also makes such DePIN projects attractive to hardware providers.
Summary
Parasail connects established assets and DePIN service proofs to enable new DePIN projects to build confidence in their services more efficiently. Stakers earn a share of DePIN service payments and incentive rewards. Users pay to use a service and get refunded if the service fails in a more established currency. This allows highly reliable and useful DePIN services to stand out as more restaked assets and hardware will opt in to provide economic guarantee for them.
Participating DePIN networks tap into the economic guarantee and hardware security on Parasail by creating Delegation Pools with reward policy, payout policy, and service proofs to attract users and stakers.
