The cryptocurrency market continues to evolve, with various decentralized exchanges (DEX) and liquidity networks gradually emerging. Among them, THENA, built on the BNB Chain and opBNB, has attracted widespread attention due to its unique design philosophy and innovative incentive mechanisms.
I. What is THENA?
THENA is a decentralized exchange (DEX) and liquidity network built on the BNB Chain and opBNB. Its design aims to provide users with efficient trading experiences and liquidity solutions. Through unique liquidity incentive mechanisms and token governance mechanisms, THENA can optimize liquidity provision and the generation of trading fees, addressing the issues of uneven liquidity distribution and inefficiency present in existing DEX.
As the second phase project of Binance's HODLer airdrop program, THENA went live on The First on November 29, 2024. THENA not only received strong support from Binance but also distributed veTHE tokens to a wide range of users through airdrops, further promoting the construction of the community and ecosystem.
II. Operational Logic of THENA
THENA's operation revolves around three core mechanisms: weighted voting, bribery market, and liquidity mining. The weighted voting mechanism references Curve Finance's 'Voting Escrow' model, allowing users who convert $THE tokens into veTHE tokens to gain voting rights. In each voting cycle, users can vote for different liquidity pools to determine the distribution of liquidity rewards. The liquidity pool with the most votes will receive more $THE token rewards, thus achieving optimal resource allocation. At the same time, the bribery market introduced by THENA allows the protocol to provide additional rewards to voting users to seek more liquidity support, effectively enhancing user participation in governance.
Liquidity Mining: By providing liquidity, users will receive returns based on transaction fees and protocol emissions rewards. The distribution of these rewards is determined through a weighted voting system, ensuring that rewards are linked to market demand and trading volume.
Weighted Voting Mechanism: On THENA, farming incentives are determined through weighted voting. By converting $THE tokens into veTHE tokens, users can participate in voting to decide the reward distribution for various liquidity pools. The voting system's design references Curve Finance's 'Voting Escrow' model, ensuring that liquidity providers receive fair rewards based on market demand and liquidity conditions.
Bribery Market: In THENA's voting mechanism, protocols can compete for support for their mining pools through a bribery market. This allows the protocol to better attract liquidity in competition and ensures the maximization of benefits for all stakeholders.
III. Core Technology of THENA
On a technical level, THENA's AMM mechanism has been optimized to support low slippage trading of highly correlated assets while also providing efficient liquidity distribution for uncorrelated assets. This dual optimization ensures that users minimize costs in trading different assets. Furthermore, THENA adopts a decentralized governance structure that enhances token holders' decision-making power in liquidity management through an improved ve(3,3) model. Additionally, the on-chain recommendation system built in collaboration with Muon allows users to earn transaction fee sharing by sharing referral links, further enhancing platform user engagement and participation.
Decentralized Exchange (DEX): As a decentralized exchange, THENA supports permissionless asset swaps, allowing users to trade directly without trusting a central authority. It utilizes BNB Chain and opBNB to provide a fast, low-cost trading experience.
Solidly Model: THENA adopts the innovative design of the Solidly model, linking liquidity incentives to the fees generated, rather than solely relying on incentives for liquidity providers. This model makes liquidity mining rewards more efficient and guides users to provide liquidity to the pools most likely to generate trading fees.
Decentralized Governance: Through the veTHE token, THENA has achieved decentralized governance. Token holders are able to participate in the protocol's decision-making, determining the distribution of liquidity incentives and other important protocol parameters.
On-chain Recommendation System: THENA also integrates an on-chain recommendation system built by Muon, allowing users to earn transaction fees by recommending other users to participate in the platform, as well as participate in weekly lottery events.
IV. THENA Team and Financing Information
The team behind the THENA project consists of a group of experienced blockchain and DeFi experts, with team members' backgrounds covering various fields including liquidity mining, smart contract development, and cryptoeconomics. Before launching THENA, the team successfully participated in several crypto projects and accumulated rich industry experience.
THENA's financing information is relatively confidential, but it is speculated that the project has received some private investment support and recognition from well-known platforms such as Binance. This support provides strong financial backing for THENA's development, ensuring its competitiveness in the DEX market.
V. THENA Token Distribution Plan
The total supply of THENA tokens ($THE) is 206,863,770 THE, with a maximum supply of 326,120,291 THE. The token distribution plan aims to ensure the long-term development of the protocol and active community participation. The main allocations are as follows:
User Airdrop: 25% (12,500,000 THE)
Protocol Airdrop: 19% (9,500,000 THE)
Team Allocation: 18% (9,000,000 THE)
Ecosystem Fund: 25% (12,500,000 THE)
theNFT Holder Airdrop: 9% (4,500,000 THE)
Initial Liquidity: 4% (2,000,000 tokens)
VI. Future Value Analysis of $THE Token
$THE token's value will primarily depend on its application and demand within the THENA ecosystem. As THENA continues to develop, the scale of its liquidity pools and trading volume will increase, driving demand for $THE. Moreover, weighted voting and decentralized governance are making the token's importance in protocol decision-making increasingly significant, which may further enhance the value of $THE.
Additionally, THENA's incentive mechanism and efficient trading experience will attract more users and liquidity providers, which will help increase the platform's trading volume and revenue, thereby enhancing the market value of the token.
