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Success Tokens Deployment Tutorial

The process to launch and manage a success token on UMA is surprisingly simple. This tutorial will show you how to deploy a success token using the Long Short Pair (LSP) contract and the UMA launch-lsp repository.

Deployment process#

The following is an overview of the deployment steps below.

  1. Set up LSP deployment prerequisites
  2. Decide on your contract design
  3. Run the deployment on testnet (Kovan)
  4. Run the deployment on mainnet (Ethereum)

LSP Prerequisites#

Please go here for guidance on LSP prerequisites before deploying a contract.

Setting your parameters#

For our deployment tutorial, we are going to continue using the UMA success token example (stUMA-1221) as a reference when setting the LSP parameters and customizing the deployment script.

Mandatory deployment parameters#

Each deployment requires the following parameters to be set at the point of deployment:

  • gasprice: The gas price used for your contract deployment.
  • url: your node URL.
  • mnemonic: Your 12 word seed phrase.
  • expirationTimestamp: Timestamp at which your contract will expire. The stUMA-1221 contract uses 1640966400 which represents the Unix timestamp for December 31, 2021.
  • collateralPerPair: The amount of collateral required to mint each long and short pair. The stUMA-1221 contract uses 1 UMA, meaning 1 UMA minted 1 long and 1 short token. If you minted using 4 $UMA as collateral, you would receive 4 long and 4 short tokens.
  • priceIdentifier: The approved price identifier to be used. The stUMA-1221 contract uses UMAUSD.
  • collateralToken: Approved collateral currency to be used. The stUMA-1221 contract uses the UMA token as collateral.
  • pairName: The desired name of the token pair. The stUMA-1221 contract uses 'UMA Success Token $15 Strike December 2021'.
  • longSynthName: The full-length name of the long token. The stUMA-1221 contract uses 'UMA Success Token $15 Strike December 2021'.
  • longSynthSymbol: The ticker name of the long token. The stUMA-1221 contract uses 'stUMA-1221'.
  • shortSynthName: The full-length name of the short token. The stUMA-1221 contract uses 'UMA Success Short Token $15 Strike December 2021'.
  • shortSynthSymbol: The ticker name of the short token or ticker symbol. The stUMA-1221 contract uses 'stUMA-1221s'.

Optional deployment parameters#

  • customAncillaryData: Custom ancillary data to be passed along with the price request. If not needed, this flag can be excluded and will be left as a 0-length bytes array. The stUMA-1221 contract uses 'twapLength:3600'.
  • prepaidProposerReward: Proposal reward to be forwarded to the created contract to be used to incentivize price proposals.
  • optimisticOracleLivenessTime: Custom liveness window for disputing optimistic oracle price proposals in seconds. A longer liveness time provides more security, while a shorter one provides faster settlement. By default, this is set to 7200 seconds.
  • optimisticOracleProposerBond: Additional bond a proposer must post with the optimistic oracle. A higher bond makes incorrect disputes and proposals more costly.

FPL deployment parameters#

The fpl parameter is used in the deployment script to designate SuccessToken or SimpleSuccessToken as the financial library used to calculate the payout at expiry. SuccessToken requires strikePrice and basePercentage parameters to be added to the deployment script while SuccessToken only requires strikePrice.

The basePercentage parameter is the percentage of collateral per pair used as the floor. This parameter is always set to 50% for SimpleSuccessToken but you can set this to a custom value for SuccessToken. As an example, if basePercentage is set to 40%, then 40% of the success token would act as collateral with 60% functioning as an embedded covered call. The strikePrice parameter is used for the strike price of the embedded call option.

The stUMA-1221 contract uses SuccessToken as the fpl parameter, strikePrice is set to $15, and basePercentage is set to 0.5. If the expiration price is below the strikePrice, the investor only receives the collateral. If the expiration price is above the strike price, the call option pays investors an additional amount based on the value of the embedded call option.

Deploying to Kovan#

Before running this command, you should customize the parameters to your needs. YOUR_NODE_URL should be filled in with a url for the network that you wish to deploy to. The deployment script has been pre-filled with the parameters for the stUMA-1221 contract.

If using Infura for a Kovan deployment, YOUR_NODE_URL will follow this format:

wss://kovan.infura.io/ws/v3/{projectId}

Run the deployment script with your specific parameters.

node index.js --gasprice 1 --url YOUR_NODE_URL --mnemonic "your mnemonic (12 word seed phrase)" --pairName "UMA Success Token \$15 Strike December 2021" --expirationTimestamp 1630447200 --collateralPerPair 250000000000000000 --priceIdentifier UMAUSD --longSynthName "UMA Success Token \$15 Strike December 2021" --longSynthSymbol stUMA-1221 --shortSynthName "UMA Success Short Token \$15 Strike December 2021" --shortSynthSymbol stUMA-1221s --collateralToken 0x489Bf230d4Ab5c2083556E394a28276C22c3B580 --customAncillaryData "twapLength:3600" --optimisticOracleLivenessTime 3600 --fpl SuccessToken --strikePrice 15000000000000000000 --basePercentage 500000000000000000 --prepaidProposerBond 20000000000000000000 --optimisticOracleProposerBond 40000000000000000000

Deploying to Ethereum Mainnet#

The method to deploy onto mainnet is the exact same as with Kovan, except url will need to be amended for use on Ethereum mainnet.

If using Infura for mainnet, YOUR_NODE_URL will follow this format:

wss://mainnet.infura.io/ws/v3/{projectId}

You can now run the deployment script. From within the launch-lsp directory, run:

node index.js --gasprice 80 --url YOUR_NODE_URL --mnemonic "your mnemonic (12 word seed phrase)" --pairName "UMA Success Token \$15 Strike December 2021" --expirationTimestamp 1630447200 --collateralPerPair 250000000000000000 --priceIdentifier UMAUSD --longSynthName "UMA Success Token \$15 Strike December 2021" --longSynthSymbol stUMA-1221 --shortSynthName "UMA Success Short Token \$15 Strike December 2021" --shortSynthSymbol stUMA-1221s --collateralToken 0x04Fa0d235C4abf4BcF4787aF4CF447DE572eF828 --customAncillaryData "twapLength:3600" --optimisticOracleLivenessTime 3600 --fpl SuccessToken --strikePrice 15000000000000000000 --basePercentage 500000000000000000 --prepaidProposerBond 20000000000000000000 --optimisticOracleProposerBond 40000000000000000000

Once deployed, the script will list the address of your newly deployed LSP. A successful output will look like this:

Simulating Deployment...Simulation successful. Expected Address: 0x44978157afE92c926619EBB54599bbc483eBe871