2.2 Temple AMM & Tokenomics Update (2/2)

  1. Introduction to Temple AMM
  2. Three Modes of AMM
  3. Temple Growth aka the soft dynamic ceiling
  4. Temple Devotion aka buy the dip game
  5. Threshold Price Dynamics
  6. Where this is all headed

Introduction to the Temple AMM

Three Modes of AMM

  1. Temple Growth is Engaged, slippage is reduced for the Templar, and a portion of every buy grows the Treasury
  2. Temple Devotion is Engaged, buy the dip game is online, and any buy-stake-and-lock earns Faith and Bonus APY
  3. Nothing is Engaged, where it operates exactly like a standard AMM

Temple Growth aka soft dynamic ceiling

Temple Devotion aka buy the dip game

  1. Protocol could buy from the AMM directly, boosting price higher
  2. Protocol could incentivise users to buy from the AMM, boosting price higher
  • Protocol can incentivise in TEMPLE rather than buy in FRAX, which is more efficient for Treasury
  • Protocol only needs to pay an incentive to ‘tip someone over the edge to buy’ rather than pay for the full order itself, further increasing efficiency
  • Incentives cannot be ‘broken by the market’ because they are paid when users buy rather than when users sell
  • Buying directly at a price above Intrinsic Value would reduce Intrinsic Value

Earn FAITH through Devotion

  1. Faith accumulates in proportion to the Temple bought. 100 Temple = 1 Faith.
  2. Faith is reduced by unstaking your TEMPLE tokens and joining the exit queue. Faith reduces by the same proportion that your OGTEMPLE reduced by.
  3. Bonus APY is a function of your Faith and Locked Temple. It is designed to be independent of your bag size: small bags and whales are treated equally.
  4. When you buy stake and lock, the new OGTEMPLE you receive will be locked for two weeks. This length of time is a policy setting.
  5. Any other OGTEMPLE you own that has not yet been claimed will be re-locked, and you will also earn Bonus APY on this TEMPLE..

Threshold Price Dynamics

Liquidity depth

Safe Harvest automation

  1. Send a specific percentage of the FRAX to Treasury (policy setting)
  2. Run Safe Harvest on Treasury to mint additional TEMPLE while allowing Intrinsic Value to rise
  3. Distribute the freshly minted TEMPLE into its respective pools: staking rewards, LP pool, bonus rewards pool, and DAO pool
  4. Combine TEMPLE from the LP pool with the remainder of FRAX from the holding contract and add liquidity to the Temple AMM

Where this is all headed

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