Designing your own KPI options program

The impact of KPI options on a project's target KPI is largely dependent on how well users understand and react to KPI options. KPI design, user communication & distribution experience all have an impact on this. This page covers some additional topics that you may need to consider when designing your own KPI option program.

Pick your Metric

The first step is to choose the metric you want your options to track. Today, Outcome supports:
  • Any protocol TVL metric available on DefiLlama
  • Any on-chain metric available through the Graph

Decide on additional KPI option parameters

The following parameters need to be decided on by your team for each KPI option program:
  1. 1.
    Expiration date: The timestamp for when the options expire.
  2. 2.
    The payout function: The rewards and the associated payout for each KPI option token. Examples here can be linear, binary or step-wise.
  3. 3.
    The collateral token: The reward token. Please note that tokens will need to be approved by governance. If not part of the approved list, please reach out to the team to add the token.
  4. 4.
    The name of the KPI option token: Each KPI option contract requires a name. For example, "Outcome Airdrop 2023".

Deploy the contract

The deployment tutorial and launch-lsp repo can be used to deploy the KPI option contract.

Mint the KPI options

UMAverse is a user interface created to assist teams in minting tokens for newly created KPI options. A minter deposits collateral into a KPI option contract and then receives an equal number of long and short tokens in return. The long token is the "KPI option" that should be distributed/sold to KPI option recipients. The short token is simply tokenized over-collateralization, or the (required minting collateral amount - the settlement value of the KPI option).
If your KPI option is not displayed on UMAverse, please reach out on Discord to get it added.

Distribution methods

Because each user's needs are different, Outcome does not provide a distribution interface or custom distribution methodology for KPI options. As some options on how to distribute the options, a project could use:
  • Build a claims interface to allow users to interact with a merkle distribution contract.

Redeeming the options

UMAverse, the UI used to mint options, can also be used by KPI option participants to redeem their tokens for collateral.
Options will be available to redeem after the expiration timestamp of the contract and a price proposal goes through the Optimistic Oracle liveness period.