On April 3rd, 2022, the fifteenth Call to Prayer was conducted. For a tl;dr, check out the Codex Twitter thread.
Temple CORE Update
- The engineering side is coming along as planned (i.e., UX, contracts).
- The big question is how to get the investment strategies right and do we set a primary strategy and reinvestment strategy separately?
RECAP: Vaults allow you to deposit $TEMPLE, and eventually many other assets (which get converted to $TEMPLE in the backend). The $TEMPLE gets locked for some time (it might be one month, three months, nine months, whatever you choose). During that window, investment returns on the Temple treasury will be allocated amongst the vaults, reflecting the different investment strategies of the Temple. There are two main options that we are discussing for the execution of this:
Option 1: You can choose a vault with a specific investment strategy that you prefer (e.g., lock into CVX for CVX rewards), and when the lock period ends, all your rewards from that strategy get liquidated into $TEMPLE. So this has potential upside and downside, depending on how well your strategy performed for the period in question.
Option 2: The TEMPLE treasury manages all investment strategies and distributes them evenly among the vaults; no choices are given to users other than how long you want to lock your TEMPLE. This is cleaner, but there is a more significant accumulation of risky assets and puts a bit of risk on the IV hard floor.
Lending, FEI ecosystem, and RARI
We still want to leverage in other vaults, and conversations are ongoing with FRAX and TERRA.
More recently, we have talked with the team at RARI and FEI, and TEMPLE may be engaged in Fei Turbo. We will be engaging a bit more with the FEI ecosystem.
This may mean that for Temple Defend for the IV swap, we give out FEI instead of FRAX. The collateral backing TEMPLE is currently in FRAX and is just sitting there, not being farmed. But if we use FEI instead, that will stimulate FEI demand and be favorable to our applications.
Our TEMPLE could also potentially be used as collateral in some Fuse pools with RARI. That would enable two things. One is that people can borrow against TEMPLE directly, and two, we can lever up the vaults (This is where we auto borrow against the TEMPLE in the vaults and use that to boost our investment strategies). Having a Fuse pool instead of creating a lending solution is also quicker.
Q: Regarding the cross-chain deployment, I am a bit worried about the capital efficiency of the protocol; the more LP we deploy, the fewer funds are available to farm with. Are there any plans to move to a Toke/ Univ3 pool to make it more capital efficient?
The LP is part of our farming system, so we want to ensure that any LP deployed generates value. One way to get around that is to use protocols like ONDO, which we trialed. Univ3 has been explored several times but has not shown the efficiencies required. We have discussed with Sushi to get some emissions from there, but at the moment, we will be keeping most of our LP on our custom AMM, which has Temple Defend natively built-in. We are also getting some great FXS returns from Frax gauge.
STAX is a new protocol powered by TempleDAO. It will be a play on both the FRAX ecosystem and yield generation. It's focused on allowing farming of your stable coins or other tokens in LP and is the best place to get FXS returns. It will also be the best place to invest in your FXS and get more returns on your FXS exposure.
You can probably imagine that this includes vaults and investment strategies. It will have similar economics to FRAX, CURVE, and CONVEX ecosystems. Templars will benefit from this, and you'll be the first to know and access it when it gets a little closer to launch. But we're pretty excited about it. I think it has the potential to take some of the temple technology and reach a new audience. And there's a lot of potential to expand beyond the FRAX ecosystem. It is built with the ability to integrate across several different stablecoin ecosystems.
DAO Games Overview
Governance in Temple is different from other protocols. When snapshot voting is used in a DAO, it doesn't actually reflect the desires of the community but the major shareholders. Anything particularly complex, new, or dramatic is hard to get consensus on. Whales often dominate the votes, and many users are disengaged. We wanted something different from snapshot voting because the basic idea of it, in the view of our team, is that it doesn't achieve decentralization that is useful for building, maybe just for maintaining.
We see this happening in MakerDAO. Snapshot also works by having some very charismatic leaders and founders where those founders do all the work behind the scenes with some very small teams. Then they put things forward for rubber stamping at the snapshot. And so technically, the community is approving things, but really they're just seeing the founder put it forward, and then they say yes. That's not governance, either. It's just the community providing an accountability board.
The concept of DAO Games is to create a layered organizational structure that operates primarily within a discipline and allows the best talent to rise from the bottom, take up leadership positions, and have the power to make decisions on the protocol. What that looks like is more like a "representative governance" model.
DAO Games Mechanics
The first iteration of the DAO games will address three things
- Project management
- Identification of templars who add value
And in the future, promotions, and demotions.
We've been experimenting with this for a long time. The enclaves break us up into different divisions based on temperament and fulfill certain organizational functions. We have acolytes, disciples, initiates, and masters, which is the hierarchy within the team. Pretty much everyone in the Temple team has risen through the community.
This model allows people to progressively be awarded greater responsibility as they show themselves adding value to Temple. We already see the system working, but we don't have the mechanics baked into the code yet. At launch, we will focus on the discord Observance bot and a new front end that will begin to map our project structure. We realized it would be best if discord was mapped to the structure of occurring projects because everyone starts and stays in discord.
In discord, we have the enclaves, and within enclaves, we have channels, and then we have threads. As ideas come up, specific channels and threads will get picked up as official projects. These projects will be officially ordained by interacting with the discord bot, and someone with a high enough ranking will be able to turn a thread or channel topic into a project.
Then the project will need a leader or "MC" and have a bounty attached to it, after which it goes through the project lifecycle (ideation, specification, execution). Once this is fully developed, you can see all the projects in TempleDAO, all the people engaged in them, and the masters and initiates leading them. We essentially linked discord and a custom database with this concept of project structures.
That describes the project structure element. But there are three other pieces. One is recording the contributions of people. Those who were around back in the fire ritual days, we have many deserving people whitelisted through high-quality, discord engagement. We created a very complex engagement index metric, which took quality and quantity of engagement on discord into account to identify the highest quality people. We might bring that metric back.
Secondly, we'll also introduce "blessings." People will be able to give each other blessings, and when they do so, it will get recorded against their ID. It will act as a way to record the high-quality contributions you have given to the protocol and be acknowledged by the community or the team.
Finally, there's "incense." Incense will be provided by the leader of a particular area or project to recognize the official contributions worth compensation. It's a system where depending on how the incense is split between members dictates how the bounty is divided up amongst people that have contributed to that project.
In summary, it's all about tracking high-quality engagement, tracking where projects are at, tracking people's roles within projects, and awarding compensation for that.
Temple Nexus Update from Lux
The motivation for the temple Nexus is to revitalize and reengage the wonderful old temple community. The word "nexus" comes from the Latin verb "nectere," meaning find. Later it was used as a word for connection or a connected series. That gave me the idea to call the project Nexus—the next chapter in the opening ceremony.
First, the opening ceremony is going to be reopened. New users will be able to get the Templar role and choose their enclave. You will now be able to pick your enclave role and be able to switch. And it will all be done through the echoing whispers website.
But that's just the beginning. We're going to launch an NFT. It will be like a passport for Templars that contains your access and your achievements as a Templar. With this passport, you will be able to access bonus content (e.g., we're building a 3D temple in the metaverse, and you need the passport and pass a certain puzzle to access it).
We have some other games that the people in chaos and mystery have worked on the past few weeks. You will be able to play it, and when finished, you're going to be able to mint a POAP that you can store in your passport. And that will then lead to additional access to other things. For those familiar with the crucible on the alchemist, the temple passport will function a little bit like that.
It will also be "evolvable," meaning that depending on the contents of the passport, you will be able to change how the passport looks. Some of the technical details are fluid, but you'll be able to stake a small amount of Temple, maybe like a few hundred, and we will mint your passport on Arbitrum. And you'll be able to go through these experiences on Arbitrum.
And that wraps it up for this session of Call to Prayer! Thanks, Templars.