Howdy Foxes! Talk of implementing FOX KPI Options via an UMA Trustless Contract has been bouncing around ShapeShift Discord for a bit now.
In the spirit of the gov process and with that initial encouragement, it’s time to gather community sentiment around the subject.
Before asking for a temp check and/or further ideation, I’ll offer a short explanation (as well as a few use cases) to demonstrate the utility of UMA KPI Options.
What Are KPI Options?
UMA KPI Options are fully collateralized synthetic tokens whose value is tied to achieving a predetermined metric. The term KPI stands for Key Performance Indicator.
Think of a KPI as any key metric that would be included in a measure of the overall health of the DAO.
KPI Options have a predetermined expiration period upon which they can be redeemed. They have a floor that can be set to zero, or a minimum value, as well as a ceiling (or maximum redeemable value).
How Can KPI Options Help A DAO?
In some of the most powerful use cases, KPI Options show their ability to incentivize, motivate, and mobilize a community.
The secret sauce is that they encourage teamwork and the buidling of relationships within, as well as outside of the DAO.
An additional benefit to the DAO is a max payout that can only be achieved by reaching the ceiling goal. Should the KPI fall short of the ceiling, that portion is collateral returned to the DAO.
Hodlers of KPI Options have a motivation to band together. Teamwork to improve the chosen KPI is the obvious answer to achieving the highest value possible upon expiration.
By making the ceiling goal a challenge, the DAO can encourage both individual and team growth along the way.
Current Use Cases
One of the most successful use cases for KPI Options was launched by their creator, UMA. This is evident in the nine month development from scratch of the SuperUMAn DAO.
After a wide and external community building distribution, the first round of uTVL Options was a great learning experience.
The newly formed SuperUMAn community made large strides towards growing the KPI, which was TVL. Unfortunately, the May correction wiped out most of that effort just before the Options expired in June.
In light of these experiences and with much input from the SuperUMAn community, UMA changed the KPI to ‘amount of integrations’ secured before expiration. SuperUMAns continue their efforts towards this same KPI now in a third round of Options.
Additional use cases for your reading below:
ShapeShift / KPI Option Temp Check & Ideation
In order to move forward with a more formal proposal (or not), please indicate your general support for ShapeShift KPI Options with a like of this post.
If you disapprove, avoid that like tab but please still feel free to offer feedback.
Should you approve of moving ahead with a KPI Option design, please offer feedback around the following areas.
What KPI (metric) should the Options target?
How long of a period until expiry?
Who could be eligible to receive the KPI Options if ShapeShift did an internal / external distribution?
How could ShapeShift DAO members organize to improve the chosen metric?
Thanks for the time and support so far. Don’t hesitate to ask questions.
Geoff, aka, Inalittlewhile / FOX / SuperUMAn