Thread by @GoolagCrypto

My thesis on @templedao in a quick thread

I know a lot of Templars have a variety of viewpoints on how Temple is going to be revolutionary, but wanted to give my own two cents

1⃣ General Narrative

In the early days, of which unfortunately I did not partake, making trades on ETH was relatively inexpensive. $300 ETH meant maybe you were paying at most $30 for at trade, but now that ETH is at $3000 you're paying $300

Well that's a problem

1⃣ con

For one in creates a barrier to entry into the ecosystem for new participants.

How can I possibly justify an investment where 10-20% of my trade evaporates into gas cost?

Even if I'm already in the ecosystem there's a significant disincentive for me to participate

1⃣ con

If it's difficult for me to manage my portfolio and make the trades I want due to gas cost, then how can I effectively manage my risk/return ratio at a level that suits me?

This is effectively the market that TempleDAO is targeting with their innovative business model

1⃣ con

TempleDAO's mission is to provide a variety of investment vehicles to the layman market participant who's not "crypto rich" enough to actually execute on sophisticated investment strategies

AFAIK there is no one else serving this market segment

2⃣ Product

What actually is @templedao going to do to solve for this market need?

They're going to create a variety of investment pools to satisfy your given risk/return ratio

The first of which is going to be $TEMPLE, who's goal is to provide stable but significant returns

2⃣ Product

I'd direct specific product explanations to my prior post, and I might post some direct examples late, but my goal here is to show the future buy-in for the protocol and why its valuable

3⃣ Future Products and Team

Here is where the real buy in for TempleDAO comes in for me. Ultimately when you choose to invest in speculative assets you're making an, hopefully, educated bet on their team and future success

3⃣ con

At this point hopefully you've understood that there is a market segment out there with demand for this product, but the real buy in is understanding the team and having confidence in their expertise

3⃣ con

The true show of success for TempleDAO is whether they can continually innovate and create new sophisticated investment pools for new users to buy into

The way I picture it is this: A long-view hedge fund that provides optimal risk-adjusted returns based on your profile

3⃣ con

The reason why IM so bullish is I've seen firsthand the capabilities of the team while participating in their discord. There's some great thinkers there who are developing the roadmap every day

Let me give you an example of a future product

3⃣ con

Consider the person who wants to take a loan out on their staked Temple. This is a commonplace need for DeFi investors

However, with an unstake queue in place for stakers the entire incentive dynamic is misaligned

3⃣ con

If I want to give a loan out on some collateral, I need to have confidence I can quickly liquidate that collateral

If I want to give a loan out on some collateral, I need to have confidence I can quickly liquidate that collateral in the case of default

3⃣ con

However with the unstake queue, there's going to be some additional variable timeframe before I can liquidate the staked Temple in the case of a default

So that disincentivizes me from giving a loan, I need to be appropriately compensated for that risk

3⃣ con

The standard mode of compensation then would be for me to charge a much higher interest rate on an illiquid asset like sTemple, but then you the borrower would be disincentivized from borrowing due to the high interest rate

How do we solve for this?

3⃣ con

It's actually quite simple, TempleDAO can create a separate investment pool for Temple stakers to take loans out on their sTemple

Why does this work?

Well if you stake your Temple with the DAO they're already in possession of the collateral and can liquidate easily

3⃣ con

That's an example of the future value of buying Temple now, access to their future investment products

I'm super excited to see their future roadmap and releases, and I'll be diligent in my reporting of them for my fellow Templars and friends

Not financial advice dummy