In order to get more community members involved in achieving our North Star Metrics. We have identified an opportunity to create KPI options with UMA that rewards INDEX holders when we hit our core metrics.
The main goals for this initiative:
- Create a measurable target for our north star metrics within a given timeframe
- Create a fair and open reward scheme, to attract new index supporters and reward existing community members
As laid out in the treasury management goal post and treasury working group post, incentivizing the achievement of our north-star goals and creating a reward program have been on the map for a while. @BigSky7 forum post where he highlights some goals for next quarter also plays into this proposal, as we aim to make these goals more tangible.
Why UMA KPI Options?
UMA protocol is a synthetics assets protocol that enables users to mint synthetic tokens based on pre-determined conditions. To date their protocol has attracted $218 million TVL with synthetic assets being minted across 11 unique projects. KPI options are a novel and innovative way to boost protocol growth and adoption. UMA offers the potential to create unique KPI options customized towards the Index Coops needs. In other words, we can create options that only pay out holders with $INDEX tokens, when a specific target is met. In our case, we propose to use our north star metrics total unit supply.
We hope to achieve the following outcomes from this campaign:
- Get INDEX holders more involved with helping Index Coop achieve core KPIs
- Increase token distribution to INDEX holders and the broader community
- Create conditions for rewards that serve the Index Coop as a whole
- Build a “unforkable” partnership with a reputable DeFi protocol
In order for this to work, we have to agree on a measurable goal (e.g. increase $DPI supply to 600k until August 2021). As of now, we know what our north star metrics are, but we don’t have a concrete incentives for us to achieve them.
Option 1 Specification
|Option Name||INDEX Unit Supply Option|
|Option Type||American Call Option|
|Option Contracts available||*3’287 options|
|Option Price/Collateral||0.1 $INDEX|
|Strike KPI (Northstar)||1,000,000 To Supply over all products|
|Total Redeemable Reward||*9’861 $INDEX|
|Vesting Period||1 Month|
|Expiry Date||30th July 2021|
*With the first option, we would distribute 3’287 options. If the north star metric is achieved by the end of July, each option has the right to redeem 3 $INDEX tokens. In the beginning, an option is worth 0.1 $INDEX and the closer we get to achieve our goal, the more value an option will have.
This will be the first KPI option available and will serve as a pilot. We intend to release more KPI options based on other core metrics like unique holders, uTVL, daily revenue etc.
We have been engaging with @Matthew_Graham from the treasury working group and have requested a total budget of 10,000 INDEX for UMA KPI options campaign.
In order to qualify to mint this option you need to be an INDEX holder from 1st May 2021.
- Posts announcing the campaign on both UMA’s and Index Coops social media channels
- Medium article on how to claim and who is eligible to mint the options
UMA Protocols’ marketing channels:
Twitter: 24K Followers
Discord: 6 295 Members
Smart Contract Risk
- UMA’s smart contracts have been audited by OpenZeppelin. The audit report can be found here.
- UMA have an active bug bounty program for improved security
- UMA will provide majority of the engineering assistance to create the first option
- Index Coop will need to generate a whitelist of INDEX holders addresses based on the qualification criteria
- KPI Options minted
- % INDEX holders with KPI options
- 2000 KPI Options minted
- 80% Index holders with KPI Option
- After forum feedback, create poll and IIP to request funds from treasury
- Create UMIP to add our unit supply KPI price identifier
- Engagement with UMA team to create first version of option
NB: Intial proposal has been updated based on feedback (*)
- Proceed with the campaign
- Do not proceed with the campaign