THIS ARTICLE IS OUTDATED. Temple's mechanics have been completely revamped, and the information in this article no longer applies. Edit: I no longer believe that the issue I describe in this post is critical to the longevity of the protocol. But I still think it is something to be aware of. In my last post, I talked a bit about runway, but I had more thoughts and details to share. What I want to discuss here is the fact that the runway effectively has an upper bound. This means that at a certain point, the runway will basically stop increasing no matter how much more FRAX is sacrificed. But before we can understand why, we need to understand how the runway is calculated.

(Image by raccoon#0991) This is a summary of some of the conversations around mechanics we've been having in the Discord. Contents Intrinsic Value & Price Ceiling Runway Risk-Free Value Bank Runs