[Alan Anderson]

I think you're talking about programming the Launchpad to act as a game controller, and you want to have more digital indicator outputs than it gives you. Right? So far as I can tell, the most it supports is 11.

I can't imagine how you are thinking an encoder might help. Connecting an input device won't bring any more outputs into existence.

You should probably consider using the Dashboard to provide some of the LEDs you want. Since you're apparently using LabVIEW, it shouldn't be difficult to create a new Dashboard project and add boolean indicators to the appropriate tab. Name them to match Smart Dashboard (Network Tables) variables and they'll be easily controlled by the robot.