Treasury Price Index (TPI) and Ramos
The Treasury Price Index is a metric used to measure the stablecoin holdings in the Temple treasury. TPI closely tracks the stable backing per TEMPLE, volatile assets aren't included in TPI.
Instead of being pegged to an external inflation measure that has little correlation to actual holdings (like the Consumer Price Index), TPI is indexed to the protocol’s own Treasury holdings. In simple terms, what this means is that as the Temple treasury grows, so does the TPI.
A token that is backed by tangible assets should be able to maintain its peg. For this we utilize our own in-house AMO called RAMOS.
Random Automated Market Operations Support–or RAMOS–is an AMO-styled liquidity manager contract that will allow the Temple Protocol to both stabilize the trading range of the TEMPLE token as well as index the price to an ever-growing Treasury. RAMOS has three main objectives
- Support the TEMPLE price when it trades below the TPI
- Recapitalize the treasury over time when TEMPLE trades too far above the TPI
- Stake and farm the underlying funds to maximize rewards
RAMOS is currently deployed on Balancer to manage our 50/50 TEMPLE/BB-A-USD LP pair. It operates in an automated fashion in order to enforce Treasury policy.