Temple Loving Care

Temple Loving Care, also known as TLC, is designed to allow users to access a short-term line of credit when they supply their TEMPLE token as collateral.

TLC parameters have been set to a flat 15% borrow APR from 0-90% utilisation. Above 90% the rate will rise linearly until it reaches 20% at 100% utilisation.

Users should be aware that TEMPLE tokens that are supplied in TLC cannot be staked for TGLD emissions in the Spice Bazaar until the debt has been repaid and the TEMPLE collateral is withdrawn from TLC.

The max loan-to-value (LTV) has been raised from 75% to 85% with on-chain liquidation LTV set to 90%. Furthermore, the TLC borrow rate is now fixed at any utilisation ratio from 0% to 100%+ of the TLC Debt Ceiling.

The TLC borrow interest rate will be periodically updated per the formula below which is based on the benchmark Risk Free Rate set to the DAI Savings Rate (sDAI).

\boxed{\text{Borrow}_{rate} = \text{sDAI}_{rate} * max(1.1, 1 + \text{TEMPLE}_{{\text{staked%}}})}