Call to Prayer #13

On February 27th, 2022, the thirteenth Call to Prayer was conducted. This is a recap of that discussion. For a tl;dr, check out this twitter thread

CTP 13 Chinese Translation
2022年2月27日,开始了CTP-13。 以下是回顾。 要在SoundCloud上收听,请点击这里。 有关tl;dr,请点击这里。 Temple转向收益分红模式 上次CTP,我们谈到了我们如何转向收益分享模式,因为yielding tokens已经崩溃。 我们需要一种新的方式来向temple持有者提供收益。 我们的使命从一开始就处于稳定币和高风险的degen投资之间。 持有稳定货币的问题是,由于通货膨胀,你的货币净值为负值。 在Temple,我们可以提供非常高质量的投资策略,这对小投资者来说是不可能做到的。 也许你想通过Curve在Convex LP中staking,并收集一些奖励,然后每周…

Temple Mechanics and Shift to Revenue Share

Last CTP, we talked about how we are shifting towards the revenue share model because yielding tokens have collapsed. We need a new way to offer yield to Temple holders. Our mission from the beginning has been to be in between a stable coin and a high risk degen investment.

The problem with holding stable coins is you’re at a net negative because of inflation. In Temple we can offer a very high quality investment strategy that’s not really possible to do for smaller investors. Perhaps you want to stake in Convex your LP from Curve, and collect some rewards and stake those rewards to collect bribes every week, then liquidate those and re-stake them. To do all that on the ETH mainnet, it’s going to cost you a ton in gas fees.

Temple investment strategy

What we see as the best possible strategy right now in terms of farming lower risk investments is being exposed to the protocols which are proven and have some really strong incentives for liquidity staking. Exposure to these protocols, locking these tokens, collecting bribes, staking and getting the best yield from a couple different players in the ecosystem is the best strategy in our opinion. In the spirit of Temple, our mission has always been to provide the very best low risk play for Templars of all kinds, no matter where they are in the world.

With that mission in mind, we want to find a way to be able to automate, reduce gas, and make sharing Temple revenue possible. We could create an automated helper contract that did all of that for you individually. The problem is if everyone interacts with this contract individually, it will be very gas-intensive and inefficient. We want to make this accessible to people who don’t have really big bags but want to generate yield on them just like whales do.

Pooling our resources and rewards

The best thing to do is pool this; We want to put all the money into one bucket and invest it all together so that we do not need to do 10,000 transactions for the 10,000 Templars. We can just do one for the whole pool, then split out how much each person gets in the right way. It’s a quite complicated strategy, but it is well known in the industry and is what sparked the Curve Wars and the FRAX wars and so on.

We also allow a bit of leverage to juice it up in a safe way that is liquidation-free. We have some ways of doing that within Temple that couldn’t really be done without our low risk mechanics.

The question now becomes: how do we split that revenue up?

This question has been the heart of a lot of the team’s work over the past few weeks. At first, we started with something relatively simple because we wanted to launch this as quickly as possible. We created a concept called FAITH, which allowed us to track much of the revenue pool each person was entitled to. CTP12 described the mechanics of FAITH as an accounting metric.

As it was described then, FAITH had a really strong incentive to claim at a later date. It was a relatively simplistic revenue share model as it pooled all the revenue together. It allowed people to claim that revenue based on how much FAITH they had. So the old design was a perfect fit for the time because it allowed you to continue growing your bags, get your share of revenue, and be rewarded if you held for a very long time.

Evolving the FAITH model

However, after we made the announcement, we had a lot of discussions with people and we slowly came to the conclusion that it was probably off the mark for long term incentives. We want to be a long term protocol where people can stake and chill for many years, decades even, while getting the best low-risk returns.

That’s the vision for temple and we will deliver this, but we also don’t want to exclude people that need to be able to claim on shorter time windows as well. Our intent wasn’t to lock people in and make it impossible to leave or have penalties for unstaking. If it’s a low risk investment, you should also be able to get your value when you need it.

Say something happens and you have an emergency. You will be able to liquidate some of your Temple and receive fair value for doing so, and not be punished. A balance must be struck between incentivizing long term staking and still allowing people to withdraw value from their investment on a regular basis. So that’s what we have been reflecting on.

We’ve had some people come back with very reasonable comments and suggestions saying “Hey you know with how this long term incentive is dope, but what if I wanted to withdraw liquidity in the meantime, it seems like I will be taxed and a greater share of revenue will go to the long term players and I wont get my share of the revenue if I tried to pull out sooner.” We discussed that and we decided that we could pull off a more aggressively designed mechanism that would allow the fair amount of revenue to be extracted for both people that wanted to stay long term and those that are in it for the short term.

How to implement this system fairly

If you do a simplistic version of accounting for revenue, just a single measure that is dividing the revenue pool, you only have two options: you can either heavily incentivize the long term, or you pay people that in real time and don't hugely incentivize the long term. In doing this though, you create this disincentive where whales can claim semi-regularly because they've got a big enough bag to justify the gas, and get more share of revenue than other people. They would effectively be claiming a portion of the share of what the long term stakers would get later on.

A simplistic mechanism to track revenue share doesn’t really work for this. What you really need is to appropriately track how much everyone is entitled to whether they claimed their share or not. We want to make the ability for people who choose to claim more frequently, or choose to claim really infrequently, exactly as you choose.

We’re introducing the concept of vaults here to make it easier for the user but also to simplify the reinvestment accounting. We’ll use vaults to group investors together so that you can choose whether you want to stake for 1 month, 3 months, or 12 months, and no one will be able to claim any part of your rewards because everyone in your vault will be locked for the same amount of time. This will also help save on gas by pooling the investment rewards together.

We can create vaults with whatever reinvestment strategies we like. At a high level, these vaults will roll on. If you leave your tokens in the 3 month vault for example and you don’t withdraw them during the window at the end of the vault duration, it’ll roll into the next period and auto-compound. If you want to withdraw, you can pull out your tokens and get your principal back which will have increased.

Next Steps

The main focus of the team is building Temple Core and the vault system. We are also working on a really sweet UX for this in the Temple dApp. We want something that is Temple themed and dope but also simple and accessible to users. There has been a bunch of great talent that has come forward from the enclaves to work on this and it’s really awesome. Our target is to get all of our work into Rinkeby soon. Timelines are a bit difficult to predict, but we’re thinking sometime in early March, we should have it all up on the test net. Then it’s just a matter of testing. Once we get to that point, we’ll be able to say how long it will take to finalize because we’ll know how many improvements and changes we need to make.

Then we will switch over to the new model which means we can begin accepting your temple tokens into vaults and also your OGTemple. If you try to stake your OG Temple into a vault, it will claim your temple tokens (all of the accumulated temple tokens you've received from your staked interest). We’ll also turn off the APY yield on OGTemple because you’ll be getting a share of the revenue. We’ll encourage everyone to move their OGTemple over to the vaults and stake there.

Borrowing Against IV

We will be giving Templars the ability to borrow against the IV of your temple. We have a custom design here that allows non-liquidatable loans because IV is a guaranteed price floor, and TEMPLE IV is currently at a much higher proportion of price than other protocols. That will allow degens to be degens and loop trade. It will allow non-degens some flexibility of capital.

We need to do borrowing after the other mechanics are finalized. Because borrowing depends on the exact mechanics so after everything else is hammered out we can properly implement borrowing on top of it.

L2 on Arbitrum

The design of this new part of the Temple has a really beautiful split of contracts on mainnet and also on L2s. One side has to be on the ETH mainnet because that is where the reinvestment actions will occur. We can also have the contracts that the user is interacting with on other L2s though because the contract for revenue sharing is just accounting metrics. These accounts between a bunch of different chains could be synced up every month to allow the exact amount of revenue to be distributed to each Templar.

Wen Ceremony?

There are a few things in the works. People can’t really join enclaves because the only way to join an enclave was to do the opening ceremony ritual which has been closed. A team of people have been revamping what was the opening ceremony ritual which will now be join an enclave ritual for newbies.

We’re also working on other experiences that will give you access to side quests and a few NFT collaborations. Chaos and mystery have been working on some of these quests for new templars and existing templars. We want to have a really clean DeFi product that everyone can use and they want to grow the TVL an enormous amount, but we also want the culture for those that choose to participate in the discord and play around, we want those people to have a really sweet experience.


We want TempleDao to be an organization with one of the most sophisticated, complex and beautiful organizational structures in the world. You have the the TempleDao game, the enclaves, the mechanics, the rituals - all these things that we're continuing to invest in, which basically is the way that we do decentralized representative governance, and we're continuing to invest on that.

The community is all part of the team, the team is part of the community, it just depends on how high you rise up the ranks as to how much you contribute. Everyone within an enclave is really part of the team is the way that we think of it. If you contribute, and you get involved in jams, and you do stuff, you can rise up the ranks, and you can be involved in actual product releases and making decisions on strategy. And that's the way temple works.

Bonus pool.

Regarding bonus pool, there are questions on where it goes. This is a question for the team to figure out what is in the best interest of the long term holders within Temple. there are a few options: Temple tokens in the bonus pool and anything leftover in staking pools when we launch could be burnt to increase IV. They could be distributed into vaults to provide a temporary return for vaults like an opening bonus. or they could be swapped into strategic assets.

The intent behind the bonus pool was for the yielding token model, so now that we’ve shifted into this new revenue sharing one, we need to find a new purpose for it. We’re happy to collect feedback and thoughts from the community around those different options. At some point after we get this released, we’ll get the team to make a decision.