Call to Prayer #9

On January 2nd, 2022, the ninth Call to Prayer was conducted. CTP9 was more informal than the previous sessions. This is a summary of that discussion. You can listen to the session on the TempleDao Soundcloud.

For the tl;dr click here.

Can you give an update on the Curve Wars?

Lost Boy - "Temple is ready to deploy into the Convex pool. We will start with a large allocation and start earning 20%. This doesn't mean we are formally entering Curve Wars, nor does it mean we will buy a large amount of Curve tokens. We didn't deploy earlier because our original strategy was to have a large Liquidity Pool (LP) for price stability. We prioritized that over deploying treasury funds into Convex."

ethpanda - "We want to invest our large FRAX treasury into the convex pool. We have overwhelming community support for it. We have all this FRAX on hand that is not earning yield, so it makes sense for us to invest it in a place where it can stay liquid, risk free, and stable. It keeps us in the FRAX ecosystem, and it totally makes sense to move it into the pool on Curve where we can start to earn two key assets:

  1. CRV tokens that we can then put in CVX/CRV and earn 50% apr and
  2. CVX tokens which are the core of Curve Wars. CVX can be locked, and we can either vote directly to get our own bribes or delegate to give us optimal bribes.

That is how we would "enter" the curve wars. We won't be market buying CVX nor FXS for now. We can change that in future if we want to be more aggressive, but it doesn't make sense to start buying a risky asset. We want to be the biggest yield farmers in the game and farm the strategy tokens (CVX/CRV) and FXS from the bribes."

Getting into Tokemak?

ethpanda - "For now, we decided against getting into the Tokemak FRAX pool. This is because it would dilute the APR very quickly since there is low liquidity in the FRAX reactor right now. The tokenomics are not as enticing today as CVX is. We want to continue to be highly nimble. We will evaluate it down the road. We will be setting up an investment chamber in the Enclave of Logic to talk through all the strategies that make sense for us."

How would temple sustain its APY if a big chunk of the treasury was supposed to be on the AMM?

Lost Boy - Temple will need to explore options to make more income and find ways to leverage our assets. The revenue generated will then be used to mint more which will grow the staking rewards pool for Temple holders."

Can you provide an update on FAITH?

ethpanda - "In the Enclave of Logic, there are many great discussions on how to divide and define Faith. We're still finalizing the mechanics and we want to make sure that it cannot be gamed easily, that it benefits faith pool Templars, and that we've taken time to make sure we think about all the edge cases. We feel good and should have an announcement to share very soon."

How to bring buyers to Temple?

Lost Boy - "One way we want to increase buy pressure is by marketing and positioning OGT and Temple as a treasury asset to other protocols. As an example: If there is another project that wants to build a massive treasury of FRAX like we did during the Opening Ceremony, they build one with OGT and Temple instead. OGT/Temple would be their treasury asset. I want to reinforce that our premise has always been the same: stake and chill. You can profit with short-term trading, but you can also get rekt. We would recommend a long-term approach with TempleDAO because we have a long-term vision and it is a long-term project. If you bought at OC and are 6-8 weeks in, that's short-term with pricing (and yes, it sucks, people are down) but if you stake and chill, all shall be well."

Any timelines you could share regarding the roadmap and Medium posts?

Lost Boy - "Some of the major things on the roadmap are:

  1. Going multi-chain. Which chain we choose will depend on where our partners are and which direction we take with them.
  2. We want to make our AMM available to other DAOs.
  3. We'll also be leaning into the Metaverse direction. We believe we can do a better job. We have great ideas and they're on the roadmap.

We realized after OC that we need to increase the amount of focus, prioritization, and ownership of projects. There are a lot of things being worked on, but not a lot being shipped, and we think the Templars felt that. We've done a lot of stuff but from a Templar perspective, it doesn't look like it. We have re-organized discord that prioritizes projects. We can tell it's improving, and as we refine it, we'll have more projects shipped faster."

How is runway calculated?

ethpanda - "We calculate it like any other staking token. It's a pretty simple formula.

We take into account:

  1. All tokens that are available for the stakers including the staking rewards
  2. and we see how many people are currently staked
  3. and we look at the daily APY
  4. see how many days we can sustain the same APY with the tokens we have on-hand.

If the number of stakers increases without staking rewards moving, then the runway goes down. If staking rewards increase without the number of stakers moving, the runway will go up. If APY goes down, the runway goes up, and vice versa.

If you see a lot of people who buy on AMM and who stake, the only variable that can change is the amount of people currently staked and therefore, you will see the runway drop faster than one day per day. Similarly when people started un-staking when we launched AMM, the runway jumped by multiple days every day because there were less tokens staked.

Since we are still in the early phases of the protocol, it is to be expected that the runway is more volatile than we want it to be. as we reach a stage of equilibrium, it should become more stable over time."

Do you really believe we can get a substantial money inflow within the next 90 days?

Lost Boy - "Yes! There are a few different ways we would do it. The first is the retail approach which is happening all the time with money coming in and going out. The second is that we need to position OGT and Temple as a stake and chill token for DAOs. DAOs will have assets in their treasury and if they can add OGT and Temple to their treasury, that would be a good play for them and us, so we're pushing that. If we succeed in that, there could be a lot of money coming in. If you think about it, FRAX was maybe $300-$500 million in total circulation when we came around. We added $180 million FRAX to our treasury and that was a substantial amount of growth for FRAX at the time, so things can happen pretty quickly."

It is obvious Tokenomics was buggered and I think what many want to hear about is how long-term the team is and how committed you all will be moving forward.

Lost Boy - "The execution and launch had big issues, and that was our fault. On that note, we were thinking a lot on leadership and failure recently, and it's true: we fucked up. We will continue to fuck up because we're innovating and doing new things, and fucking up is part of the game. That's okay as long as we continue to move forward. We're extremely committed and extremely long-term thinking. With the AMM launch, we had people drop out, but for most part, everyone on the team really came together and worked hard. I was really impressed. It really brought a strong sense of "we're in this together and we're going to win together". A lot of people are down, and it sucks, and we get it, but we really are a long-term, forward thinking organization. Sometimes we'll hit the ball and it will go far, and OC was like that. Other times we will strike out, but over the long-term you will see value and the organization grow because TempleDao is a long term game."

ethpanda - "And we're building! We're just starting. The AMM didn't work out because we were building for equilibrium state and didn't plan for dynamics the unlocking schedule. We will continue to try and be nimble and react. We're not here for a quick buck. We're here to build something long lasting. We're not going anywhere until Temple is one of the biggest defi's around."

What are the wages in Templedao?

Lost Boy - "I'm working on a Medium post where the team payment system will be explained. Basically, everyone gets paid in Temple tokens per epoch. The period between OC and AMM launch was one epoch. The team gets paid based on work in that time frame. We have a DAO pool and payment distributions from that pool."

What is RFV?

ethpanda - "IV (intrinsic value) is the price that is built into the AMM as the floor price at which the protocol will be buy from you indefinitely. This is the same as OHM's 1 DAI. Ours is approximately $0.65. We probably put too much emphasis on IV. A protocol like ours should never get to IV.

RFV (risk-free value) is the amount assets that the protocol owns divided by the number of Temple tokens that could have a claim on those assets. The worst case example: Temple doesn't work, we stop it, and re-distribute assets to token holders – that is how much assets per token each Templar can expect. RFV is approximately $1.94, which means that we are currently trading at a discount against RFV of about 50%. This is pretty cheap compared to most treasury backed protocols in Defi. You could argue that we are the cheapest around right now. We could have done better at framing things around RFV over IV. Olympus doesn't talk about OHMs 1 DAI, because they don't want you to remind you that they'll buy back your ohm at 1 DAI."

Why do you think nobody is buying? What is missing?

ethpanda - "Right now, there is a lot of fear. Olympus is at an all time low. People want to get out without understanding the dynamics of our protocols. Most people don't understand what RFV is. Many people have been waiting for the unlocking to be done. Some people are just traumatized by the exit queue. We are nowhere near the state where we were when AMM happened, and we expect buying activity to happen sooner rather than later (but not financial advice, just my opinion)."

When you first envisioned this project, you must have known that a lot of FRAX was going to go into the treasury and you must have had some thoughts as to how you would grow that treasury. The way you are speaking now about curve pools and such sounds like you are only thinking about it now. Did the team have a plan to invest and grow the treasury when you first envisioned this project and what was it? Did something change?

Lost Boy - "The Curve pools in this investment strategy isn't one that is long-term. It is just a smart thing to do. We will make money. Investing in these Convex pools won't be the 10x or 100x we're looking for with the product development we are doing and that is why we are doing it: our strategy around the LP has changed. Our original value proposition was a low volatility, stable, slowly growing token with a high yield. That is still the roadmap, but the way we are getting there is changing based on what's happened. Having a large LP is part of that vision because it encourages low volatility. Had there been enough buy pressure, the original plan would have worked out, but due to a number of factors, our strategy changed. The original vision is still the roadmap."

Wen enclaves opening?

Lost Boy - "We do not have a date on this yet, but it's coming for sure."

Why is the rate decreasing? That was one of the main selling points of Temple. The other being price stability.

Lost Boy - "The rate will decrease if it needs to decrease. 1% a day compounding becomes very extreme and compounding that out continually, at some point, is just not possible. Over the long term, there will be a slowing down of that. It just depends on how we position Templedao."

What will the next couple of weeks look like for Temple?

Lost Boy - "January 3rd is the last day of unlocking. After that point, no individuals from OC will be locked. After that, we will deploy treasury into convex pools. We'll be posting a medium article about that (Convex pools) and about the team payment system. Faith timing is coming in the short-term as well as a new UI push (easy mode) for the front end. We will publish the roadmap. We're also working on helping our team work better together and be more productive, which Templars don't really see. It is a main priority so that we can ship faster and more often."

Wen Coingecko listing data?

Lost Boy - "Because we have our own AMM, they need 60 days of time before they get involved. @Shaud☀w is working on that in Enclave of Order."

Any advertising for Temple?

Lost Boy - "Our strategy is to focus on product development and partnerships. We will put more thought into marketing. The highest leverage thing we can do is to work on successful partnerships with other protocols in the crypto defi space. As an example, TempleDao going deeper into our relation w/ FRAX ecosystem is a high leverage product and marketing move. We feel that is better than paying a hot girl on TikTok to rap Templedao."

What is your rough strategy for recruiting templars/building teams?

Lost Boy - "In essence, the enclaves are the recruitment system of TempleDao. Once you join an enclave, it's difficult to get promoted to Disciple. The ones that do have shown a lot of value and are contributing in a meaningful way. It's a unique and efficient way for us to build up the organization because we have a good team with great people. We have more work to do on the org side of things, but we're doing a better job so I see us being more productive. Between Twitter and Discord, finding individuals has gone well so far."

I think you or someone on the team mentioned an idea of OGTemple as collateral for borrowing during one of the mini-AMAs the other day. Can you provide more detail on what that would look like, and how far down the roadmap that is?

Lost Boy - "This is on our roadmap. It depends if we make a partnership or do it ourselves. It's not an immediate priority but it is there."

Other notable observations

  • @dcfgod was in CTP chat reinforcing his Tweet.
  • BaconDAO AMM buy 260k came thru during CTP
  • Daniele Sesta (MIM, TIME, ICE, etc) responded to @Lucifer on twitter.
  • Lost Boy noted that there will be another more product-focused CTP with decenmaxi.

To check out the previous Call to Prayers, click here or check out the #call-to-prayer channel in Discord.