# :question: June 2022 - Temple Core Vaults Launch Q&A

### 1/ Can you explain how the APY is calculated exactly for vaults. Since only a small amount of the total temple is staked, shouldn't the yields be way higher?

The 18% APYR is estimated based on assumptions of Total Staked TVL, historical treasury yields, and leverage per $TEMPLE token. The yields on Convex farming have fallen precipitously as the prices of $CRV and $CVX have fallen so it's hard to predict the yields in the future. But in general, it's true that if the TVL in vaults is relatively small compared to the total circulating $TEMPLE supply, then the Convex farming rewards are shared by just Core vault stakers. This leads to a levered return on your vault holdings. The main takeaway is that APR is an estimate based on reasonable assumptions, and will continue to adjust over time.

### 2/ In the scenario where all the temple gets staked, is the APY = convex frax APY or is there some other math here?

**Vault APR = Convex APR only if $Temple was valued at book value**. Since $TEMPLE price is currently below book value per token, buyers will receive leverage because they are getting up to $1.14 worth of farming power vs. their cost basis of $0.68 per $TEMPLE (at time of writing) . This doesn't include all the additional sources of yield we try via the Treasury Strategic Proposals (TSP) such as bribing on pitch.money, etc. We also fully expect to diversify our treasury exposure strategies in the future with partnerships with Frax Finance, Tribe, Berachain, and other protocols.

### 3/ How exactly will the $TEMPLE buyback happen with the yields?

The details of this are still being determined and will likely not be shared publicly in detail to avoid being front-run. We are considering multiple options for the buy-backs ahead of reward distribution including the FraxSwap TWAMM. We are still working out the best path forward to return maximum value to stakers when price is below book value.

### 4/ For the OGT staking still receiving TEMPLE, those that are in the vaults don't get the TEMPLE right? Now that way less is staked as OGT, do those that remain here get a higher yield in fresh TEMPLE or is that not how it works?

The yield on $OGT remains indexed at 10% but will slowly drift lower to 0%. The fewer people that still hold $OGT, the longer their yield runway which is being funded by the bonus pool.

If all of the $OGT stakers jump into vaults there will be leftover $TEMPLE tokens in the bonus pool. The team will decide what to do with those tokens if/when that happens. Rest assured that the bonus pool is expressly dedicated to rewards that directly benefit the community.

We recommend everyone currently holding OGT to migrate to Core vaults to enjoy the highest yields: <https://templedao.link/dapp>.

### 5/ What is the threshold price for minting now and what happens if we start minting again (are minted temple still distributed to stakers)

Minting $TEMPLE would not happen until _the price of $temple > book value_. Minting above book value follows the mechanism that was designed during the creation of the AMM: Above the book value, a portion of the slippage from each buy order will go directly to the Treasury rather than into the AMM LP pool.

The Safe Harvest contract will need to be revamped but we can presume that minted TEMPLE will be allocated primarily to Vault rewards, Bonus Pool, AMM LP, and the DAO.

### 6/ What happened to EFA/book value, no mention in medium or on the website. What is the "EFA" price now?

You can see for yourself what EFA is by looking at how much we're farming on Zapper and comparing that to the amount that is locked into the vaults. Soon there will be a better dashboard for this. _You can also see EFA on the financial reports released periodically by the Analytics Chamber._ Note that everything the Treasury has farmed historically prior to the launch of Vaults is now part of this EFA so there will be no retroactive yield given to stakers.

### 7/ What are the conditions for an RFV-style trade? 3 cycles? Can we get more specific success metrics?

We said previously that we would evaluate in 3 vault cycles. At the time of this writing, it has been one day since the 1st vault was launched. We will address this again when we approach the third cycle. Regardless, our Team goal has always been to have the book value returned to Templars in one way or another.

We understand the desire for clearer metrics to be evaluated at the end of the three cycles, and we will have more to share with the community as we get closer. In terms of addressing a few of the concerns we've heard from the community: Additional $TEMPLE is not going to be minted unless we are trading above book value. And while we do plan to offer multi-month vaults in the future with a rewards boost, the "default" vault will remain the 30-day vault.

### 8/ How are we using the farming rewards from the last 6 months?

Before moving to the sustainable Core Vault model, TempleDAO initially offered yield to users at 1177% APR. At the end of the runway in March, we shifted to 10% APR paid from the Bonus Pool until the current day. During this period, the base pool of farming capital was farmed and new rewards were compounded back into principal. [These DAO asset holdings can be viewed on Zapper](https://zapper.fi/bundle/0x5c8898f8e0f9468d4a677887bc03ee2659321012,0x22c2fe05f55f81bf32310acd9a7c51c4d7b4e443,0x8a5058100e60e8f7c42305eb505b12785bba3bca,0x6021444f1706f15465bee85463bcc7d7cc17fc03,0x4ce17ae9fb4aa0178ec2f8eea3f6167ae511f14c).

This farming capital ensured that every $TEMPLE holder receives as high of a yield on their $TEMPLE as possible with the launch of Vaults. Now that we’ve moved to the Core Vault model, the base pool of capital will not be increasing as fast going forward and instead, those farming revenues will be passed on directly to users in one form or another i.e. tokens or buybacks. The fact that the base pool is higher means that **each user is getting more rewards compared to if we had not farmed for the last few months.** In short, the farmed CVX/FXS/CVX/bribes from the past 6 months are all being utilized in exposure strategies, and the resulting rewards will be paid out to vault stakers.

### 9/ Will IV (Intrinsic Value) go lower once the faith reward is distributed?

No, IV (Intrinsic Value) is currently $0.65 and has stayed steady at this price, even through heavy selling into Temple Defend. IV is designed such that it cannot go down. The bonus tokens from FAITH redemption are derived from Bonus Pool TEMPLE that was already minted from the time of Opening Ceremony and does not affect IV at all.