Understanding KPI campaigns

Unlike traditional campaigns that reward LPs solely based on their liquidity contributions, Metrom uses specific performance metrics to determine rewards and allows projects to create campaigns where rewards are distributed only if specific KPIs are met.

Basic example

Setting TVL as the KPI ensures that rewards are only distributed if the target TVL is met. If the KPI TVL is set at 10 million but only reaches 5 million, Metrom distributes 50% of the reward pool, corresponding to 50% of the KPI achieved.

The remaining 50% can be recovered by the campaign owner, saving the project 50% in rewards that can then be reused in subsequent incentivization campaigns.

Tech behind calculation

Our KPI-based incentive mechanism operates on a regular metronomic frequency. At each cycle, we fetch all measurable campaigns—those with attached KPIs—and run measurement tasks based on their on-chain state and current market prices. When its time to assign and distribute rewards, we take an average of these measurements since the last reward distribution and the KPI setup (TVL goal reached in percentage and minimum payout), we calculate a multiplier that will scale down the amount of overall rewards for the period. With these liquidity density calculated, the rewards are then distributed as normal ensuring that the emissions are aligned with the campaign’s KPI targets.

Benefits

1. Efficiency: Metrom’s KPI-based model prevents token wastage by distributing rewards only when predefined goals are met.

2. Goal Alignment: By tying rewards to KPIs, Metrom ensures liquidity mining campaigns align with the project’s strategic goals.

3. Community Engagement: Metrom’s approach encourages active community participation, as LPs are financially motivated to help achieve the project’s goals.