RAMOS

Random Automated Market Operations Support (RAMOS)

RAMOS is an AMO liquidity manager contract that allows the Temple Protocol to both stabilise the trading range of TEMPLE or any token and anchor the price to any policy-driven price such as the Treasury Price Index.

Historically, RAMOS smart contract was deployed to manage the TempleDAO Protocol owned Liquidity (PoL) which consisted of a 50/50 TEMPLE/DAI LP on Balancer. RAMOS contract functions may be called by bots via off-chain automation infrastructure.

How RAMOS Can be Applied to TEMPLE:

• Support the TEMPLE price when it trades below the TPI

• Recapitalise the treasury when TEMPLE trades at an "excessive" premium over the TPI

• Stake and farm the LP token on the underlying DEX to maximise gauge rewards

RAMOS will be active whenever the TEMPLE price falls below a target policy price such as the Treasury Price Index (TPI). However, the target price is not a hard floor and at times the token may trade at a discount or a premium to the target price. Similarly, RAMOS may also be active when the policy-prescribed upper bound of TEMPLE is reached.

RAMOS is a Treasury management tool that can be used to automate and regulate exposure to any asset

Probability Heat Map for How RAMOS Determines When to Rebalance

When spot price is more than 1% below TPI

• RAMOS will periodically rebalance and single-asset withdraw TEMPLE liquidity from the LP and burn the tokens to raise the TEMPLE price in the Balancer pool.

When spot price is more than 3% below TPI

• RAMOS will always trigger a rebalance and single-asset withdraw TEMPLE liquidity from the LP and burn the tokens to raise the TEMPLE price in the Balancer pool.

When spot price is more than 3% above TPI

• RAMOS will single-asset deposit TEMPLE into the LP to recapitalize the pool. Alternatively, RAMOS may single-asset withdraw stables as a de facto bonding system to recapitalise the Treasury during periods of strong demand.

Furthermore, RAMOS was designed to take advantage of volatility in a way that is less susceptible to MEV attacks and front-running that can confound other AMO systems:

• Randomized Timing: RAMOS does not rebalance on a fixed schedule. Aa randomisation logic will be applied with respect to the timing and the size of the rebalance. At default settings, a rebalance will be triggered 2–3 times per day on average. If the TEMPLE price falls too far below the policy bound, a rebalance will be triggered automatically to protect the TPI.

• Randomized Rebalance to Raise the Price: The number of Balancer Pool Tokens (BPT) that RAMOS will use to rebalance the liquidity pool is also randomised. RAMOS will calculate the number of BPT tokens required to fully close the gap between current price and TPI and check the price impact of the operation. Then it will extract anywhere between 50%-100% of that number to single-asset withdraw tokens.

• Randomized Rebalance to Recapitalise the Pool: When spot price trades above TPI, RAMOS will close anywhere from 1% to 10% of the gap between the current price and TPI per rebalance event by depositing more TEMPLE tokens to recapitalise the pool.

Rebalances to the downside are designed to be extremely mild to allow TEMPLE to trade at a significant premium to the TPI.