Call to Prayer #11

On January 31th, 2022, the eleventh Call to Prayer was conducted. You can listen to it on the TempleDao Soundcloud.

CTP11 discussed the updated direction of TempleDAO mechanics (lovingly called 'Stake and Chill v2').

Below is a summary of that discussion.

CTP 11 Chinese Translation
2022年1月31日,进行了第11次Call to Prayer(以下简称CTP11)。你可以在TempleDao Soundcloud上收听。 CTP11讨论了TempleDAO机制方向的更新(亲切地称之为“Stake and Chill v2”)。 下面是讨论的总结。 介绍“STAKE & CHILL v2” ☀ decenmaxi ☀ - 我们之前已经在Twitter上发布了关于“Stake and Chill v2”的细节。这里是一个快速的回顾。 1.以前的机制是如何运作的?-对于收益型代币(yield tokens),其专注于通过bonding、内部AMM、liquidity…

INTRO TO STAKE & CHILL v2

☀ decenmaxi ☀ - We have previously released details on stake and chill V2 on Twitter. Here is a super quick recap.

  1. How Have Things Worked Before? - For yield tokens, you're focused on growing the treasury via mechanics like bonding, internal AMM, liquidity-as-a-service, etc. All this in an attempt to grow the treasury faster than you are providing yield. But when the market turns and treasury growth cannot match up with the yield you're promising, that's where we see all of the yielding tokens completely turn their business model upside down.
  2. What About Now? - We are in no different situation. When the market shifted, the team decided that sustainability was the number one problem. A lot of protocols are making small tweaks around the edges but at the heart of it, the real problem is that if the market doesn't have faith in these yield tokens, and doesn't add to the treasury with buy pressure, high APY will not be sustainable. That may be a future problem (a couple of months from now or maybe a year) but it doesn't really matter, because if the trend is that the model's not working, it is going cause a lack of trust and therefore a drop in price.
  3. So What is TEMPLEDAO going to do? - We don't want to make small changes. We've got to do V2 and get to a point where it's 100% sustainable where there cannot be any FUD around the runway. We want to share the Treasury growth, a large portion of it, directly to the stakers. In this way, we won't run out of runway. It's 100% sustainable. We can kind of step out of that "yield token" category, and instead become something that is a different kind of asset, and could be priced differently in the market.
  4. Gib More Details Pls, Ser - What we want to do is give people an opportunity to farm the very best strategies in DeFi right now in a way that gives them exposure to these strategies at scale, easily, without requiring big enough bags to track it or to understand how to do it themselves. This is really the exact same concept of stake and chill we had from the very beginning. The current mechanics would've worked for a bull market, but in an extreme crash, we still fell too far.
  5. Got An Example? - Our intent is to implement a strategy that could look something like this: Stick our FRAX on Curve, stick the LP on Convex, collect CVX, take our LP and stick that on a FRAX gauge to collect FXS. Now we can collect bribes and maximize our return on CRV, CVX and on FXS. This whole picture together is a strategy that gives exposure to the very best yield available right now. If I was to put a bet on certain ecosystems, it's going to be things that are tied to the very heart of DeFi, and the very heart of DeFi is liquidity and the allocation of capital. The Curve ecosystem and the curve wars that are going on is evidence that this is not going away anytime soon. So a combination of these is what we think is the best investment play in DeFi right now, except for continuing to be active in early stage protocols. And we want to add that on top as well. But I'll come to that towards the very end.
  6. So Who Should Buy TEMPLE? - To pull off these strategies yourself, you would need some very large bags. And to continuously do that every week, to overcome your gas costs you need to be a pretty decent sized whale. So if you want to chill more than managing your bags every week, or if you don't have enough bags to pull off that kind of a strategy itself, then Temple is the place to be. And even if you are large enough to pull this kind of strategy off, TEMPLE right now would still be an incredible investment opportunity. Because if you were to buy TEMPLE today, at prices so low, you would get two or three times the exposure. Far more than $1 per token (Not $1 In terms of price. Let me just clarify that. We're not saying when TEMPLE token is equal to $1. I'm saying when one TEMPLE token gives you $1 exposure.)

MECHANICS OF STAKE AND CHILL V2

☀ decenmaxi ☀ - So the way that this is happening is through TEMPLE (or OGTEMPLE) tokens and Faith.

  1. How Does OGTEMPLE Come Into Play? -  So previously, we had a token called OGTEMPLE. It was a token that represented how much compounding token you held. As the OGTEMPLE index(ratio) increases, you get more TEMPLE. Now, in v2, it's going to be a little different. Once we shift to this new model, those of you with OGTEMPLE will be able to come and verify your Faith. In doing so, you lock your OGTEMPLE for a period of time. It'll be a minimum of a month and a maximum of pretty much as far as you want. This then translates to how much Faith you can claim in proportion to your OGTEMPLE. The amount of Faith you have represents your share of the revenue pool (this pool comes from earnings from the farming strategies covered earlier). This revenue is shared after a small fee - which goes to the protocol and helps grow intrinsic value. Other than that part of it, the rest of it goes directly to OGTEMPLE holders.
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Faith is NOT A TOKEN. It is a counter on chain, which accumulates for your wallet and is non transferable. And it represents your claim on the total revenue

2. What Is My Claim Of  The Revenue Pool? - We don't want to just send it to you directly every month. That would not be an ideal way to design it because it would require liquidating portions of the investment every month to pay the rewards. And second, it would be incredibly expensive in gas fees. So instead, what we do is we allow you to verify and claim your Faith. And as the revenue pool is growing, your Faith is growing and the global amount of Faith out there in the market is also growing. The clever way we have to implement this is that Faith is a kind of accounting metric for how much revenue share you are owed. So if you lock your OGTEMPLE for around say, six months, you should have six months worth of revenue claim. So every month you're collecting Faith it is growing your share of the revenue pool. And so if the revenue pool grew to for example $100, over that time, and you had 10% of total Faith over that time, then you will have 10% of the revenue that you will be able to claim

3. Is My Revenue Compounding If I Do Not Claim It Immediately? - You don't have to claim in order to compound it. We want it all auto-compounding. We want to keep investments in these strategies and we don't want to have to liquidate every month to give people their revenue. That would destroy the compounding effect, and massively increase the gas costs. So what do we do? How do we allow people to claim their revenue, but not have all of the revenue sitting there in an easily liquidated pot and not compounding, just waiting for people to claim them? This is the way it works: you burn your Faith to redeem your share of revenue, but you don't get your revenue straightaway. When you burn your faith (and this happens at specific times each month) it tells the protocol "hey, I want to claim my share of revenue". Let's say that 3 Faith out of 100 faith have burned this month, then we know that 3% of the revenue wants to be claimed. The protocol can then liquidate the exact amount of value out of the best place to liquidate it, and put it into the claim pool. And then people that burned their Faith are able to get access to that revenue. What that means is that we only need to liquidate as much as you want to claim and every single dollar that doesn't want to be claimed for that month can stay auto-compounding.

4. What Else Do I Need to Know About Faith? - When you get Faith, even if you decide to burn it, your lifetime Faith will still increase because we want to play with that on some of the metaverse angles. Your lifetime Faith will never decrease. But of course "consumable" Faith is reduced by how much you burn.

$wenTEMPLE

☀ decenmaxi ☀ - There are some good questions about locking your tokens.

The idea with locking is that you're signaling to the market that you're going to be locked for a long time. If you lock for a long time, you get a Faith multiplier. The multiplier depends on how long you have left in your lock time on your tokens. When you lock your tokens it'll [maybe] be called $wenTEMPLE. It's similar to the veFXS model with some differences. The longer you lock for the more benefits you get, which is the same way that leasing models work. If you want the maximum multiplier, the current proposal is lock for four years (same as veFXS). We're kind of thinking 1.2x or 1.3x, or something like that, but we're happy to calibrate these things as needed.

Wen Airdrop?

☀ decenmaxi ☀ - Airdrop of Faith is ready, tested, and will be coming this week. Although minor changes have occurred to mechanics, the snapshot date has not changed. We look forward to having an impact with this first airdrop, and are aware that Templars want something special.

Partnerships

☀ decenmaxi ☀ - Regarding partnerships, below are ideas for partnerships and looking into uses of the Temple treasury:

  1. The Curve and Frax wars provide great opportunities at the moment
  2. Looking to provide liquidity to pools, maybe the FRAX gauge pools, maybe the FPI token
  3. Partnership with a few FXS bribing whales and creating a Temple platform in this space

Degen Chamber

☀ decenmaxi ☀ - An issue that has occurred is buying voting power and quadratic voting. Whales can split up funds amongst various wallets to gain voting power and swing votes in a short period of time, and this is a massive concern to governance. The answer to this issue is bottom-up representation. Templars who have small bags and are locked in from the beginning should have more power than a whale who bought in yesterday. This is why Faith is important because it can provide a non-transferrable measurement of length of time in the Temple.

Another solution is Blessings, which can be given to and from Templars for the quality of their contributions to the community, and not just the volume of contributions in Discord for example. We've been doing this informally so far and this is how people get promoted up to acolyte, guardian, disciple and initiate. Amazing people that are doing amazing work can rise through the ranks. Now, think about the idea of a championing an early stage protocol investment partnership model that was crowdsourced from the community. If you can do that [propose the partnership], you get entry into the chamber as a voting member. It makes you an official part of the chamber, and our intent is to make all these things visible, so everyone would be able to watch the chamber. People that get elected into this Degen Chamber would be able to vote on how to direct the investment of some of the Temple funds into early stage projects, and we would give them a commission for finding those partnerships and getting access to them. Temple would invest the money then the Temple would benefit because we're getting a crowdsourced, Degen group running around all of DeFi, identifying the best opportunities. The Degen Chamber as a whole would vote on whether or not the money is put in.  This is not to put Temple at risk, but give power to the community and explore the governance model.

Metaverse Alfa

☀ decenmaxi ☀ - We have a lot of people that are really keen on the gameplay mechanics and the Templeverse. We're talking about the Temple lore storyline, the ability to have growing levels rising up through the organization, Avatar wrapping, and many other great ideas. There's a ton of really great work and really great ideas that have come about.

But, to accomplish our metaverse goals, the first thing we need to do is go cross-chain, and that implementation is in the works.  Second, we have to be careful about Temple mechanics.  We can't just give away tokens for game play, so we want to make sure that the core financial part of Temple is really solid and retransmitting.

Now what we can do to prototype the metaverse on the organizational side, and this is really hard to crack because making the 3D DAO experience will be revolutionary. If Nike opened a store, and allowed anyone who owns their shoes to tell them how to run it, it would be chaos. But if we crack this, it is a really valuable and important problem for the future of defi and the future of protocols to be sustainable. If we get this right, it is completely magical looking.  Why does Apple have a flagship store? So you can walk in and you can see the aesthetic, you can see the values, you can see the product range.  All the Temple element would be a lot easier to understand if I could walk into the whatever area and just see the product and see the way it's laid out and see the different areas that I need to understand. It'd be amazing for onboarding, it'd be amazing for community development. And that's what we're doing for Temple.

Closing Remarks

☀ decenmaxi ☀

Please, if anyone has any value to add, if anyone has any thoughts on how we can improve all these ideas that we've shared, we can join the team, right, like just getting amongst it and help us. We want to do this together. So come along, and let's build this thing.

Happy Prayers.