On April 17th, 2022, the sixteenth Call to Prayer was conducted. For a tl;dr, check out the Codex Twitter thread.
Temple Core Update
For the launch of vaults in Temple CORE, we have decided to break new ground and write our code for the protocol instead of using a fork of the work of another DAO. We've got most of the UI done for the CORE launch, only the contract side had been holding us up, but we are much closer to launch. Some updates on the progress:
- The synthetic accounting of investment exposures has been implemented
- The front UI is almost complete
- The biggest thing remaining is the integration between contracts.
Some key contract concepts to know:
Vaults - Represent a share of the revenue generated by the Temple treasury investments. You will be able to lock your $TEMPLE in for some time, and the longer you lock, the bigger your share of the final revenue is. Your rewards will be paid out in TEMPLE tokens at the end of the lock period.
Temple Revenue - The treasury investments and revenue generated from those investments must be accounted for. And depending on the length cycle of a vault, there are different pathways for the revenue (e.g., for a shorter 1-month vault, all revenue will be liquidated back into $TEMPLE and distributed at the end of the month, but for a longer 3-month vault, the revenue should be utilized differently to optimize rewards at the end of month 1 and 2, like staking them)
Exposures - This is an accounting concept, as an item on the ledger. It is a synthetic version of the asset in the treasury and is used to keep track of whether the assets should be invested and where or liquidated to provide rewards to stakers. The collection of investment strategies will roll up into an exposure.
A couple of the big ideas from the contract side that are being implemented
Decoupling of accounting and investment exposures - We have decoupled a few commonly coupled things in DeFi, namely, accounting exposures from the investment strategies. Separating these will allow our investment strategies to iterate and evolve in the background while keeping rewards for TEMPLE holders constant. It also has the advantage of being multi-chain capable.
In practice, it is decoupling the two means that when users interact with our contract, they interact with our bookkeeping mechanism, not the actual treasury. So this limits the attack vectors that are open to bad actors.
Auto rolling of vaults - When you lock your $TEMPLE in a vault, the rewards and your capital can get liquidated into $TEMPLE at the end of the vault cycle. You can claim it, or if you leave it and chill, it will automatically get re-locked in the vault, compounding your rewards. So you don't need to manage your investments actively.
What's left do do
- Write tests for redeeming exposure
- Zapping into or exiting a vault
- Exposures testing
- Dry run on operations flow
- Integrate the contracts with the front-end
We will be launching our new product STAX sometime after CORE is rolled out. However, before we launch that fully, we will pre-launch to get people acquainted with the product. STAX will be a place to stack your FRAX and FXS and earn a higher yield.
This will allow people to stake into the Temple gauge on FRAX with an actual UI rather than going directly through the smart contract like they are currently doing. So STAX will be a way to earn FXS rewards on your FRAX and TEMPLE and will generate benefits for TEMPLE holders. STAX will be a "powered by Temple" product
Q: What's the possibility of raising IV to book value?
The point of IV is that it's the minimum value that can be defended. Raising the IV too high above its current level of $0.65 means that we won't have enough assets to back every token.
Q: Will Temple lending be available in the vaults?
It makes sense to build lending capability on top of vaults, and it's being pushed forward in the background. But right now, the focus is on releasing the vaults and investment strategies as step one.
Q: What are the investment strategies?
The strategy is to invest in the FRAX3CRV pool, staking on convex, collecting CRV, CVX, restaking, and then buying cvxCRV for staking as a reinvestment strategy. At launch, there are many opportunities we can pursue, like utilizing leverage and earning yield from TEMPLE/FRAX LP. There will be more and will be made transparent at launch.