Mechanics Part 2: Safe Premium

Safe premium?

  1. Infinite mint inflation that leads to dumping of yield
  2. Automated market maker (AMM) pump and dump

How it works

  1. No one would buy from the AMM at the higher price when they can get the coin cheaper from the Protocol
  2. There is an arbitrage opportunity for fast hands to buy from TempleDAO and sell on the AMM until the prices are in equilibrium again. TempleDAO could also do this, but at least for now we will let our users profit.

Natural questions to ask at this point

  1. This means you receive compounding rewards.
  2. $TEMPLE token is protected from regular AMM pump and dump dynamics
  3. And as a more stable protocol, TempleDAO attracts more users and growth

Wrap up

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