ANT has now been added as a collateral asset to UMA (see Github merge here). This enables ANT to be used in the creation of KPI options for the Aragon community. KPI options are synthetic tokens that will pay out more rewards if the KPI meets predetermined targets before a preset expiry date.
Nearly all DAOs created with Aragon are currently on Aragon v1. With the launch of Aragon v2, we would like to incentivise Aragon DAOs to transition from Aragon v1 to Aragon v2. To incentivise this upgrade, we’re proposing to use KPI options as a mechanism to accelerate the transition to Aragon v2.
The options would be distributed to all Aragon v1 DAOs immediately after the option creation. At the option expiry, Aragon v1 DAOs would then be able to redeem their options for the ANT collateral in the KPI option contract. The amount of collateral they can redeem will be dependent upon:
- The DAO’s proportional share of AUM (USD denominated) relative to all Aragon V2 DAOs at 30th June 2021.
- How quickly the DAO upgrades to Aragon v2 DAO relative to other v2 DAOs
The proposal below includes steps for an initial test of KPI options. Should it be successful, we’d propose increasing the collateral underlying the option to a much larger amount and expanding the use of KPI options to meet other targets deemed important by the community of ANT holders.
KPI option details
The contract start date would be on 7th April 2021, 1pm UTC and end of 30 June 2021 1pm UTC.
The Key Performance Indicator (KPI) would be total value of assets (AUM), denominated in USD in all V2 DAOs by the 30th June 2021.
The KPI options would be distributed to all Aragon V1 DAOs.
We propose to place the KPI option in a bonding curve to incentivise early adopters of Aragon v2 in favour of late adopters.
Ahead of running a vote on Snapshot for this to get the signalling input from ANT holders, I’d like to post a draft of the planned votes here for community review.
Vote 1 - Amount of ANT to be used as collateral in the option creation.
- 0 ANT (signals you’re not in favour of using KPI options)
- 50k ANT
- 100k ANT
- 150k ANT
Vote 2 - Based on the amount of collateral from vote 1, what upper threshold should we set for USD AUM in V2 DAOs by 30th June 2021
- 100 million
- 200 million
- 300 million
- 400 million
- 500 million
- 600 million
- 700 million
- 800 million
- 900 million
- 1 billion