I want to introduce a comprehensive partnership between our community and the Temple DAO community that I’m extremely excited to discuss here and get FXS holder feedback.
Background
Firstly, Temple DAO is a new project that is a single token, treasury backed/RFV-style protocol with community+metaverse elements https://www.templedao.link/
TEMPLE is the token which is staked for APY while the community partakes in rituals that manage the treasury of the protocol. Observers will notice this has some similarity with OHM but with many unique properties in TEMPLE such as a ceiling price of TEMPLE as well as the RFV floor. I highly recommend FXS holders take a good look at their specs. I was fairly impressed.
FRAX should support promising and friendly projects like TEMPLE that are excited to use FRAX as their predominant stablecoin over DAI/USDC (and others). FRAX will be the top stablecoin in TEMPLE’s treasury and their community has extended a hand of genuine camaraderie on Day 1. I think this is an excellent opportunity for both protocols to support each other so that there is very large net value creation.
Proposal
FRAX builds a TEMPLE AMO similar to what we’ve done with OHM. Periodically, we send FRAX expansions to this AMO to purchase+stake TEMPLE (as well as add TEMPLE to LP pools/contracts as they are built by their community) . Like the OHM AMO, this will go toward increasing FRAX’s balance sheet and also helping TEMPLE-FRAX liquidity so both communities can trade/invest properly. There will likely be many useful things to do with the acquired TEMPLE in addition to the great yield it will accrue naturally from staking it in Temple DAO. Temple gets the predominant benefit of accruing a lot of stablecoin in its treasury at its growth phase. This is a boon for them and a good investment opportunity for FRAX. As with all AMOs, the entire operation is in line with peg goals and would not jeopardize the peg performance of the protocol.
FRAX proposes a FRAX-TEMPLE gauge in the medium term after a few weeks of growth+partnership between the two projects so that LPs can earn FXS+TEMPLE and partake in both communities directly (this can be a separate governance vote in the future so keep in mind this is separate than this FIP 25 even though we’re mentioning it now).
Temple DAO has selected FRAX as their predominant and first stablecoin to be used in their treasury. This is both exciting and demands great support+respect from our community imo. Projects that select FRAX over all possible choices like DAI USDC FEI etc are showing to the world FRAX’s incredible promise in tech/innovation as well as seeing a friendly community that will stand by their side. It is important for us to also set a great precedent that projects who embrace FRAX see the extra value add that our community brings vs. the passive stablecoins they could have used instead.
Temple DAO will continue to integrate+use FRAX as the predominant stablecoin in their treasury and receive our support+expansion efforts as we jointly build up this partnership together to make it more systematic across time.
LFG! Excited to hear what all the fraximalists have to say about this!
