GYSR + UMA: Streamed KPI Options
We are excited to announce a partnership between UMA and GYSR to provide novel incentive mechanisms for the broader DeFi ecosystem. In this article, we describe a technology integration for distributing UMA KPI options using the GYSR pool system.
UMA KPI options
UMA KPI (key performance indicator) options are synthetic tokens that pay out rewards to holders based on a specified target metric and expiry date. This is intended to align individual token holder interests with the collective interests of the protocol.
The KPI option is implemented using two other UMA technologies, the Long-Short Pair and the Optimistic Oracle. Importantly, these options are also represented as ERC-20 tokens.
You can learn about UMA KPI options here:
GYSR staking pools
GYSR staking pools are a contract between creators and users to incentivize and reward a particular tokenized behavior. It allows projects to promote meaningful participation in the protocol and also provides a fair and transparent token distribution system.
GYSR contracts can be configured with any ERC-20 token, multiple distribution schedules, time-based incentives, different reward mechanics, and more. This means pools can address a wide variety of use cases and problems.
You can learn more about GYSR here:
Integration
Bringing these two technologies together, we can deploy a new incentive mechanism that rewards stakers with KPI options! This gives a project the joint benefits of fairly distributing the token to meaningful participants and also aligning the token holder’s interests with those of the collective protocol.
This pattern allows the project to promote two different facets simultaneously:
- the staking token represents some useful behavior
- the KPI option is tied to a specified key metric
For example, this pattern could be used to incentivize both:
- DEX liquidity via LP staking token
- protocol TVL via KPI option reward token
The series of diagrams below provides an overview of the phases and architecture for this pattern:
How to get started
- Create your UMA KPI option following the steps here:
https://docs.outcome.finance/kpi-options/deployment-tutorial - Deposit your project token reward collateral to mint the long and short token pairs.
- Choose your staking token to target the desired user base for distribution (e.g. governance token holders, liquidity miners, NFT holders, etc.)
- Create your GYSR pool following the steps here, using the UMA KPI option long token as the reward token:
https://docs.gysr.io/guide/launching-a-pool - Fund the pool with the KPI option long tokens for distribution over the desired period.
- Share the pool with your community so they can start participating!
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Please reach out to the GYSR or UMA team at any time for questions/discussion on this pattern. We’d be happy to collaborate!
