Themis Protocol raised 625 ETH in IDO in 15 days. What is the charm of the Themis Protocol that is about to deploy Blast L2?

Recently, the established decentralized derivatives protocol Themis announced its official launch on Blast L2 and launched a new token and economic model, which will undoubtedly add new vitality to the decentralized derivatives track.

Earlier news, Themis Protocol announced that it would conduct an IDO on its official website on May 13. On May 29, Themis Protocol tweeted that its THS token IDO had ended, reaching the IDO hard cap in 15 days, raising a total of 625 ETH, with a subscription amount of more than 2.4 million US dollars. With such a hot market sentiment, what is the charm of Themis Protocol? This article will introduce the dual-token economic model of Themis Protocol (Blast L2) in detail, including the governance token $THS and the contribution token $SC.

Themis Overview

Themis Protocol is a decentralized derivatives trading platform built on Blast L2. It aims to attract more users to participate in the decentralized financial market and provide incentives and value capture by providing an efficient, secure and transparent perpetual trading environment. The dual-token economic model of Themis (Blast L2) is an important component of it.

In the decentralized financial market, the economic model is crucial to the success of a project. It not only determines the project's token distribution and incentive mechanism, but also affects the project's long-term development and market performance. A good economic model can attract more investors and users, thereby promoting the rapid development of the project.

Governance Token THS

THS is the protocol governance token of Themis Protocol, with a maximum supply of 10M pieces. One of the main functions of THS is as a voting right in platform governance. Another important function of THS is to serve as the main value storage point for various revenues of protocol derivatives exchanges.

$THS is an asset reserve cryptocurrency. All $THS are minted by the Themis Treasury at a rate of 1 THS per US dollar. The protocol will charge a 10% seigniorage for each minting of $THS.

• THS Casting Release

The issuance and minting process of THS is closely related to the development of Themis. In the early stage of the project, the creation minting was carried out through IDO (Initial Decentralized Offering), with a quantity of 333,333 THS. Among them, 33,333 THS (10%) were used as minting tax, and 300,000 THS (90%) were used to issue IDO and add initial liquidity. The IDO price was 0.0025ETH, and the initial price was 0.0031ETH. IDO has completed the fundraising of 625ETH.

In addition to the THS minted at the genesis, the subsequent THS can only be minted through bond sales. By selling LP bonds, the Treasury holds 100% of the liquidity of the THS-ETH trading pool.

The seigniorage of THS is used for the technical development and maintenance of the protocol, community node user rewards and development funds. Over time, the actual circulation of THS will slowly increase in the early stage, but because its actual supply is affected by many factors such as the value of treasury assets, THS prices, and position profits of derivatives exchanges, it will enter a deflationary stage in the middle and late stages, and its actual circulation will be far less than 10M pieces.

The risk-free value of treasury assets (Treasury-RFV) (in US dollars) is the upper limit of THS minting, formula:

• Circulation of THS

  
  

1. THS holders can obtain staking income by staking THS according to the Rebase cycle:

The income from THS staking increases in the form of compound interest in the form of sTHS, and the pledge can be released at any time, but the compound interest income cannot be obtained immediately. Instead, it will be released in equal amounts per block within 180 days. The release speed can be accelerated to as fast as 30 days by burning SC.

2. Users can also purchase LP bonds by adding THS-ETH LP liquidity to obtain THS minted by the treasury. When users purchase LP bonds to obtain THS and pledge the full amount, they will receive an additional 5% THS token reward.

The above are two ways for THS to increase its circulation, and the increased circulation comes from treasury minting.

• THS Destruction and Equity

There is a close relationship between the governance token THS and the derivatives exchange tbTrade. The vault is the short-term counterparty to all transactions on tbTrade, while THS is the long-term counterparty. Therefore, THS has a strong value capture capability. In the long run, THS will be in a deflationary state, and the price performance of THS will also be better than similar products.

In most cases, traders lose money, and 35% of the profit of the treasury position is deposited into the treasury as a reserve for minting THS, and 55% of the profit of the treasury position is used to repurchase and destroy THS. The circulation of THS decreases and the price rises. In extreme cases, when traders make a profit and the collateral rate of ETH is less than 100%, the treasury contract enables the reserve to mint THS, and then sells it to fill the gap in the treasury ETH pool.

The ability of the token to capture the value of the project itself determines the success of the project's token economic design, and 25% of the transaction fees of the derivatives exchange tbTrade will be fed back to THS pledgers, that is, THS pledgers can obtain this part of the transaction fee income in addition to the pledge itself.

The governance tokens of many DeFi protocols have a weak correlation with the value of the protocols themselves, and the governance tokens have poor value capture capabilities, so their price performance is not ideal, but THS can easily circumvent this problem.

Contribution value token SC

SC is the protocol contribution token of Themis Protocol, with a theoretical maximum supply of 1 billion. Its main function is to reward those who contribute to the growth of protocol users. It can also be used as a burning mechanism to accelerate the release of THS staking income.

1,000,000 SC will be issued in the Genesis phase, which will be used for airdrops and rewards in specific phases. Except for the SC issued in the Genesis phase, all other SC will be minted by the protocol, and the protocol will establish an initial treasury of 10,000 USDB for SC.

• SC's Minting and Additional Issuance

  
  

SC is minted by users who pledge THS. The minting will consume USDB. The minted SC is rewarded to those who contribute to the growth of protocol users. The process of minting SC will cause the price of SC to rise.

In order to obtain a high compound interest rate of 0.2% every 8 hours, THS stakers need to spend an additional 20% (USDB) of the staked THS value to mint SC tokens. The minting funds go into the USDB treasury. 5% of the minted SC will be used as a protocol development fund, and the remaining 95% will be rewarded to the inviter and node users.

$SC coinage utilization rate (Usage Ratio) is a dynamic variable, which is initially 66%. For every 5 million increase in the total amount of SC, the utilization rate decreases by 2%. The minimum utilization rate is 50%, which is when the total amount of SC reaches 40 million.

New SC minting amount = (minting funds * fund utilization rate) / SC price

SC price = USDB vault total value / SC circulation

Due to the existence of fund utilization rate, the rate of increase of USDB vault is always higher than the rate of SC issuance. The larger the SC issuance, the faster the USDB vault increases. Therefore, the minting and issuance of SC will make the SC price higher and higher.

• Redemption and Burning of SC

  
  

Users who own SC can accelerate the release of THS pledged income by burning SC. Since SC is destroyed in this process, burning SC accelerates the release of THS pledged income and will cause the SC price to rise.

In addition, users can also redeem SC from the USDB vault at real-time prices for USDB. A 15% redemption tax will be charged for SC redemption for USDB, and the redemption tax will continue to remain in the USDB vault. When users redeem SC, the total amount of SC decreases faster than the USDB vault, so the redemption process will also increase the price of SC.

Therefore, the SC token is a unilateral and continuous rising model. To sum up, SC minting, SC burning, and SC redemption for USDB will all cause the SC price to continue to rise. The optimization of the SC model is an important innovation after the Themis protocol migrated to Blast. This mechanism will play an important role in the launch of the protocol and the subsequent user growth.

Dual Currency Economic Model

The governance token THS and the protocol contribution token SC play different roles in the economic model of Themis (Blast L2). The two are interdependent and mutually reinforcing, and will jointly promote the development and prosperity of the platform. Specifically, there are the following aspects:

1. Inject funds and liquidity into the protocol: The minting and circulation of THS and SC can bring more funds and liquidity to the Themis treasury and treasury, and promote the development and prosperity of the platform.

2. Maintain the stability and balance of the platform: The reward mechanism of the contribution value token SC and the destruction mechanism that accelerates the release of THS staking income promote the positive cycle of the protocol, thereby maintaining the stability and balance of the platform.

3. Improve transparency and fairness: The minting and circulation of THS and SC are completely executed on the smart contract chain, which is fair and just.

summary

Themis (Blast L2) dual-token economic model is an important part of its decentralized derivatives trading platform. The interaction and influence of the two tokens THS and SC in the platform economy will jointly promote the development and prosperity of the platform.

Earlier news, Themis Protocol announced that it would conduct an IDO on its official website on May 13. On May 29, Themis Protocol tweeted that its THS token IDO had ended, reaching the IDO hard cap in 15 days, raising a total of 625 ETH, with a subscription amount of more than 2.4 million US dollars. With such a hot market sentiment, what is the charm of Themis Protocol? This article will introduce the dual-token economic model of Themis Protocol (Blast L2) in detail, including the governance token $THS and the contribution token $SC.

As a governance token, THS provides support for the governance and development of the platform, and also serves as a reward mechanism to encourage users to participate in the construction and development of the platform. As a contribution value token, SC is used to reward those who contribute to the growth of protocol users, and can also be used as a burning mechanism to accelerate the release of THS staking income. Through the interaction between THS and SC, the economic balance within the protocol is achieved, while also improving the transparency and fairness of the platform and protecting the interests and rights of users.