Why has THE surged so much?
This is mainly due to Binance's strong support and the extensive promotion by many KOLs.
Yesterday, CZ posted a tweet, and then Binance announced that THE would be launched at 6 PM that evening.
THE adopts the ve33 model, also known as the flywheel 33.
The logic of ve33 is "pulling the market is justice," because pulling the market is the best way to attract traffic. Its core is perpetual debt, which reduces selling pressure through others' pledges.
In simple terms, users can lock THE tokens into veTHE; the longer the locking period, the more voting power they have.
Those who hold veTHE can not only share transaction fees but also influence the incentive distribution of liquidity pools through voting.
Unlike traditional DEXs, the biggest feature of the ve33 model is that all income from the DEX belongs to ve33 stakers, which actually gives the token real earnings, unlike UNI and CAKE, which are not very useful.
People are willing to stake because they want to earn transaction fees and bribe costs.
This model is somewhat like stepping on one's own foot: after you pull the market, there won't be much selling pressure because there is a large amount of locked positions in the ve33 model, and liquidity won't be too high.
Currently, the average locking period for THE stakers is 1.78 years, with a maximum of two years, and the locking ratio is nearly 80%, reflecting investors' confidence and indicating that the staking yield in a bull market is very high.
With the active trading on the BNB Chain, future on-chain income will reach a relatively high level.
The staking yield for THE may also become relatively high, which could attract more market liquidity into the BNB Chain.
So it can be seen that Binance's launch of THE is based on strategic layout, as the BNB Chain is improving its DeFi infrastructure, and Thena happens to fill this gap.
