Tempus (TEMP) is a decentralised finance (DeFi) protocol designed to bring fixed-income and future-yield tokenisation to the blockchain. Built primarily on Ethereum, Tempus integrates with well-known DeFi platforms such as Aave, Lido, Compound, and Yearn. The protocol allows users to convert variable yields from yield-bearing tokens (YBTs) into predictable fixed yields or leveraged exposure to interest-rate movements.
The native token, TEMP, is an ERC-20 utility and governance asset. It can be staked for fee-sharing opportunities and used for governance proposals. Tempus aims to make interest-rate management in DeFi accessible to everyday users by providing tools to lock in fixed returns or speculate on future yields. It addresses key problems in DeFi such as APR volatility, lack of capital-efficient fixed-income tools, and the difficulty of separating principal from yield exposure.
Tempus operates through smart contracts on Ethereum, and was previously deployed on Fantom. Users deposit YBTs—such as stETH, aUSDC, or yvDAI—into a TempusPool linked to a specific maturity date. This deposit is split into two ERC-20 tokens: Capital Tokens, representing the principal, and Yield Tokens, representing the future interest earned up to maturity.
These tokenised assets can be traded through TempusAMM, a custom automated market maker designed for interest-rate swaps. Liquidity providers in TempusAMM earn swap fees and continue earning yield from the underlying assets, though they are exposed to impermanent loss based on rate volatility.
The protocol relies on the consensus mechanisms of its underlying networks (Proof of Stake for Ethereum), and executes all yield-tokenisation logic on-chain. The TEMP token has a capped supply of 1 billion and supports governance participation, staking, and fee payments within the ecosystem. Over time, governance has introduced updates such as new YBT integrations, fee structure changes, and refinements to TempusAMM.
Tempus offers several practical applications in DeFi. Users can lock in fixed yields by converting their YBTs into Capital Tokens, making it easier to plan and manage returns. Those who want to speculate on rising yields can accumulate Yield Tokens, which increase in value if interest rates climb.
Liquidity providers can add Capital and Yield Tokens to TempusAMM pools to earn swap fees and benefit from underlying yield, although this comes with rate-related impermanent loss risks. The TEMP token itself plays a role in protocol governance, allowing holders to propose and vote on new integrations, fee parameters, and upgrades. Stakers may also share in protocol-generated revenue.
Tempus is especially useful for DeFi fixed-income strategies, on-chain treasury management, and interest-rate derivative markets. It caters to users looking for predictable returns, as well as advanced traders seeking exposure to yield volatility.
Tempus was founded by David Garai, a Hungarian entrepreneur with a background in finance. The project launched on Ethereum mainnet in December 2021, with the goal of bringing fixed-income functionality into DeFi. Early adoption was driven by support for popular YBTs and the deployment of TempusAMM.
Over the next year, the protocol expanded to Fantom and introduced a broader set of integrations. The team raised over $30 million across private and public funding rounds to support development and liquidity. Audits, bug bounties, and listings on major analytics platforms helped build trust and visibility.
While Tempus was considered one of the early leaders in DeFi fixed-income, its total value locked (TVL) and developer activity declined by early 2024. Liquidity and user activity slowed, and the protocol is now viewed as a historical reference point in DeFi’s evolution. TEMP continues to be tradable, but with low volumes and limited active ecosystem participation.