SUMMARY:
This proposal is to add a new veBAL gauge for the TEMPLE/bb-a-USD 50/50 weighted pool and deprecate the current TEMPLE/DAI 80/20 weighted pool on Ethereum.
References/Useful links:
Website: templedao.link
Github Page: github.com/TempleDAO/TempleDAO
Communities: discord.gg/templedao / Twitter: @templedao
PROTOCOL DESCRIPTION:
TEMPLE is a low-volatility token with a focus on price stability and Treasury farming to increase stable backing per token. Our protocol is one of the largest liquidity providers in the Balancer Boosted Aave USD pool with $25-$40M in TVL over the past 30 days. Recently we launched the Temple Ascend Festival, which utilized Balancer v2 LBP technology to implement a token buyback program to return value to holders. The event was a success and resulted in over 51mm TEMPLE tokens purchased and generated high transaction volume for our TEMPLE/DAI 80/20 weighted pool by the utilization of Balancer routing from arbitrage bots.
MOTIVATION:
This proposal aims to add a veBAL gauge for the new TEMPLE/bb-a-USD 50/50 weighted pool. Initially, TempleDAO had seeded a weighted LP pool TEMPLE/DAI 80/20 chosen for its high farming efficiency and low risk of impermanent loss. It was also convenient to seed our LBP pools with DAI as opposed to FRAX so we could get correct pricing.
To closer align our Protocol with the new BAL gauge framework introduced in BIP-57, we would like to switch our primary LP pool to Balancer’s preferred stablecoin bb-a-USD to pair against TEMPLE in a 50/50 pool to facilitate deep liquidity and seamless routing. Platform BAL incentives would incentivize TEMPLE liquidity as weekly trading transaction volume on the Temple custom Uni v2 AMM has ranged between $3M to $7M for the past 30 days. The TEMPLE-FRAX gauge on Frax Finance currently has over $20M in total value locked (TVL) and we have provided close to $1M USD value in FRAX and FXS in bribe incentives to drive liquidity into our FRAX gauge.
Similarly our existing 80/20 TEMPLE/DAI LP which has $9.6M in TVL has generated between 1.3 - 2.0% in fees APY for the past 60 days. We have also provided over $300K of incentives to veBAL and vlAURA holders for the TEMPLE/DAI gauge on the Hidden Hand platform. Should this BIP proposal be approved, these incentive programs will be continued on the new Temple gauge.
A new bb-a-USD trading pair would bring significant TEMPLE trading volume to the Balancer platform and indirectly drive more liquidity to bb-a-USD through our incentives program. TempleDAO plans to be active participants in Balancer governance as not only are we big fans of the technology, but also share a common vision of reducing price volatility, deep liquidity, and customizable asset exposure. A bb-a-USD pool would also make it easier to buy TEMPLE tokens with other stablecoins besides FRAX.
GOVERNANCE:
TempleDAO current team has been almost entirely sourced from the community contributors. We started with a top-down nomination system for promotion and are currently in the early stages of implementing a Discord-integrated election system for promoting and demoting team members which will eventually lead to more decentralization.
ORACLES:
TempleDAO does not rely on any external oracles. The intrinsic value backing per token used for price floor defense is coded into the contract: 0xae8a796bd9437Bd266664e8e9B8428B25A7D2477. Our custom Uni v2 AMM has handled over $300M in transaction volume since launch without any issues.
AUDITS:
TempleDAO contracts have been fully audited by Peckshield. We also have a generous and on-going bug bounty system at hats.finance funded with $400K USD in $TEMPLE rewards.
CENTRALIZATION VECTORS:
The token is not upgradeable nor pausable;
The owner has limited minting capabilities and cannot blacklist the contract;
The team behind the token have shown that they have never abused nor committed any actions that would affect the integrity of the builders behind TempleDAO.
MARKET HISTORY:
TEMPLE initiated its token presale in October of 2021 and public trading began on its own custom AMM on December 19, 2021. It currently has strategic partnerships with major protocols like Convex, Yearn, Aura, Frax, and Balancer.
VALUE STATEMENT AND CONCLUSION:
The TempleDAO Team has been a major adopter of Balancer technology. Our protocol has generated significant volume on the Balancer platform through our LBP buyback program which is an integral part of our Protocol mechanics. TempleDAO has also been a significant bribe provider for veBAL holders by incentivizing emissions through Redacted Cartel’s Hidden Hand platform to help accelerate and deepen our liquidity pool. Should the 50/50 TEMPLE/bb-a-USD pool become whitelisted for BAL rewards, our bribe incentives program would continue to promote trading, bribing, LP farming activity on Balancer, and in particular bb-a-USD liquidity paired against TEMPLE.
TEMPLE/bb-a-USD 50/50 Weighted Pool Contract Address:
0x173063A30E095313eEe39411f07E95A8a806014e
Gauge with 10% emissions cap: 0x973fb174Cdf9b1652e4213125a186f66684D899c
Zapper bundle for TempleDAO Treasury:
Additional Specification
Included in this proposal is the removal of the TEMPLE/DAI 80/20 gauge.
If approved, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction using 0xab8f0945 for the data(bytes) argument and 0x7dfadb8c3230890a81dc9593110b63bc088740d4 for the target(address) argument.
0x7dfadb8c3230890a81dc9593110b63bc088740d4 corresponds to the gauge contract for TEMPLE/DAI.
