Tetu and Outcome’s TVL KPI Options: a win for liquidity & strategic community initiatives
By Chandler De Kock, Gruad and God in the Making
The team at Outcome.Finance and the SuperUMAn DAO are excited to support a new collaboration that will empower users to deposit TETU as collateral in UMA, and mint options tokens empowered and secured by UMA’s optimistic oracle, known as KPI options.
These KPI Options track the TVL of the UMA-USDC LP on TetuSwap. In the settlement, users will be able to claim TETU in case of profit from the options.
KPI options will earn a profit if the TVL of the UMA-USDC LP reaches a target TVL on the Expiry Date. Once minted the KPI options tokens can only be redeemed on expiry date.
KPI options are among the suite of optimistic DAO tooling of Outcome.Finance.
What is Outcome.Finance?
Outcome.Finance uses UMA’s optimistic oracle (OO) to secure various DAO tools to help DAOs achieve better outcomes. Outcome uses this data as the foundation for a collection of incentives and governance tools, and KPI options are among them.
These tools are available to DAOs directly, but are also white labeled and offered by other protocols.
Showcasing the value of KPI options
KPI options allow DAO teams to tokenize their preferred KPI metric to align incentives such as TVL, and achieve specific Outcomes. KPI options metrics can be tracked on DefiLlama, subgraph or any other API as long as it is open sourced and provides a consistent view of historical state to be verified through the OO.
DAO teams can select the desired payout function that would translate the raw value of the KPI metric to the payout amount for token holders based on previously provided parameters. Currently, KPI options support binary options, linear functions and stepwise payouts subject to reaching predefined KPI milestones.
This particular collaboration demonstrates that Outcome’s toolings, empowered by UMA’s OO, can thrive in the multi-chain ecosystem while showcasing UMA’s overall support for the SuperUMAn’s strategic decision to engage with Polygon.
The integration of KPI options will expand the provision of liquidity on Polygon while the OO will remain secure in its foundational voting system. This not only shows that KPI options work, but also that Tetu is effective at spinning up advantage and marketplace access to swap KPIs quickly and with little friction.
Community growth a key part of optimistic DAO tooling
Outcome’s KPI options were also created with the aim of providing the growth of several DeFi Project communities. By the very structure of the KPI options, every KPI option holder has an incentive to grow that KPI because their option will be worth more.
