Temple End of Runway
As discussed during Call to Prayer #14 (Sunday 13th March, 2022), the end of the runway is fast approaching. Here is what will happen next:
- The staking rewards pool will be fully distributed on 26th March 2022 based on current staking levels and the current APY of 1177%. This marks the end of the runway when all $TEMPLE tokens from the staking rewards pool have been distributed as yield to $OGTEMPLE holders.
- After the above takes place, APY will be set at 10% until Temple CORE launches. This temporary rate will bridge the gap between the end of the existing runway and the release of Temple CORE.
- Temple CORE will offer revenue-share vaults to users, focusing on simplification and Temple’s reduced risk ethos.
- Lower APY vaults will be rolled out first. Shortly after that, vaults with longer durations and higher APY will be released.
- Temple has accumulated over $3.2M in farming rewards so far this year.
Temple Yield and Runway
The TempleDAO community has enjoyed a bountiful 0.7% daily yield (1177% APY) since the AMM launch. Those who entered during the Opening Ceremony benefitted from a boosted 1% daily yield (3678% APY) for the first six weeks. This high yield was possible due to tremendous treasury growth during the Opening Ceremony and was planned to be initially sustained via $TEMPLE purchases above 6x of the token’s intrinsic value.
Since the overall market took a bearish turn at the end of 2021, treasury growth under a yielding token model became unsustainable. TempleDAO realized this early and began working on a new treasury growth strategy that relied upon sustainable farming income. The yielding token model was due for a change (see our first roadmap medium post), but the need for widespread change to the model came upon us sooner than we had anticipated.
In early January, we discussed reducing APY with the community to extend the current staking reward runway, following the changes in the market. The feedback we received was an implicit preference for the DAO to continue to payout the yield at the then-current APY. Many Templars had banked on their guaranteed Intrinsic Value return by buying $TEMPLE at discounted prices.
As we approach the end of the current runway, we will follow through on this commitment and pay out all staking reward pool tokens to OGTEMPLE ($OGT) holders at the current APY. This will mean the staking pool will be depleted on March 26, 2022 based on current APY and staking levels.
There will be a transitional phase between the end of the existing runway and the release of Temple CORE. The team is making significant progress, and we expect the new Temple CORE vault product to be released 2–6 weeks after the end of the runway.
During this transition phase OGTEMPLE will earn an APY of 10%, drawn from the $TEMPLE Bonus Reward pool.
This extension allows us to launch Temple CORE with a full exciting feature set and aesthetic design.
We are going to be releasing a series of Medium articles explaining Temple CORE in detail, but for now, let’s give a brief overview:
- Time-Based Vaults — a unique revenue-sharing product where the yield is based on your $TEMPLE locking duration, with yields sourced directly from current Treasury strategies.
- Mixed Strategies — supercharged investments via farming and bribe strategies and additional leverage.
- No-Liquidation Borrowing — low-risk user borrowing options against $TEMPLE collateral at intrinsic value subject to caps. This may launch after the release of Temple CORE.
TEMPLE Protocol Health Check
TempleDAO has outperformed many of its peers during the recent market downturn, even while the token price is currently sitting near IV. The graph below shows how we have performed since the December launch. Because our IV is guaranteed by the Temple Defend contract, the new investor is subject to low downside risk while gaining exposure to the best stablecoin farming strategies. The $TEMPLE token also offers upside exposure to the so-called Curve wars through our massive Treasury and active plays in the FRAX ecosystem. The leveraged farming tokens with a hard price floor is a unique value-proposition for $TEMPLE.
OGTEMPLE holders will have received their full allotment of staking pool rewards on March 26th. Beyond this date, they will receive a transitional 10% APY while the TempleDAO team finalizes the release of Temple CORE.
Temple Vaults will utilize market-leading DeFi strategies that offer exposure to the Curve and Frax wars, Votium bribes, sensible leverage (utilizing our extensive treasury), individual borrowing against IV, and much more.
We’re excited to share CORE with you, so you can enjoy automated Farming-as-a-Service that combines the best stablecoin yield and bribe strategies available in DeFi. Average investors will be able to take advantage of the same strategies that whales use while also enjoying gas savings and automatic compounding simply by staking in the vault that suits their investment profile.
Thank you. Stay tuned for updates.