TempleDAO's first offering is the TEMPLE token. TEMPLE is a fractionally-backed, low-volatility, yield-bearing token. It offers DeFi users a comfortable middle-ground between inflationary stable coins and hyper-volatile tokens.
It's easy to chain together a bunch of buzzwords, but what does this actually mean? Let's break it down. TEMPLE is:
  • Fractionally-backed: each TEMPLE token is backed by a certain amount of stablecoins. This amount is known as the Intrinsic Value (IV). IV can never go down, and can only go up as the treasury grows.
  • Low-volatility: TEMPLE's mechanics ensure that the price spikes neither up nor down very quickly.
  • Yield-bearing: TEMPLE can be staked in exchange for yield. This yield is backed by real treasury growth; the supply isn’t just arbitrarily inflated.
TEMPLE is able to have these properties by using various stability mechanisms. These mechanisms roughly fall into two categories: absorbing excess buy pressure, and absorbing excess sell pressure.
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