At 22:44 on October 15, 2020, the Filecoin network block height reached 148888, and the main network was officially launched.

After the mainnet went online, Filecoin’s data volume expanded rapidly. Until May 2023, the effective computing power of the entire Filecoin network reached 20.1021 EiB. However, without the support of smart contracts, Filecoin has limited functions and can only support data storage.

In March 2023, the Filecoin Virtual Machine (FVM) was officially launched. Filecoin supports smart contracts and user programmability through FVM, greatly unleashing the potential of the Filecoin blockchain. After the introduction of FVM, Filecoin realizes storage + retrieval + programmable smart contracts, and will support the development of DeFi, GameFi, NFT... It is foreseeable that the Filecoin ecosystem is about to explode.

The development of the Filecoin ecosystem is inseparable from the support of liquidity. To provide financial infrastructure for the bottom layer of the Filecoin public chain, Themis Protocol came into being. Themis Protocol is an important DeFi Lego on Filecoin. It is an aggregation protocol covering AMM exchanges, LSD, stable coins, and derivatives transactions, and provides a series of supporting DeFi services for Filecoin ecological participants.

Themis Protocol’s product portfolio includes: ① Themis Pro: an asset exchange-based decentralized spot and derivatives trading platform based on FVM ② Themis Swap: an AMM-type decentralized exchange based on FVM ③ Themis Pool: for FIL currency holders and SPs LSD protocol provided ④Themis Stablecoin: FIL mortgage-minted protocol for US dollar stablecoins.

Core product——Themis Pro

The DeFi’s Summer of 2020 brought huge liquidity and crazy growth of infrastructure to the blockchain ecosystem. When the tide recedes, problems such as impermanent losses and excessive slippage begin to emerge. On the basis of absorbing the advantages of Curve, Olympus, GMX and other DeFi protocols, Themis Protocol improved the liquidity incentive plan and quotation mechanism and launched Themis Pro. LAAS (liquidity as a service) advocated by Themis Pro is the only way for the second revolution of DeFi.

Themis Pro, as the core product of Themis Protocol, is a decentralized spot and derivatives trading aggregation platform based on Ve(3,3) on FVM. Through innovation, Themis Pro has the advantages of a unique capital pool asset adjustment mechanism, a zero-slip trading mechanism, strong platform revenue feedback capabilities, and high capital utilization.

①Unique capital pool system.

Different from traditional CEX and DEX, Themis Pro does not use AMM and order book mechanisms, but uses the Themis treasury fund pool as the counterparty for users' spot and contract transactions. The treasury fund pool consists of a basket of blue-chip cryptocurrencies. There are mainstream crypto assets and stable coins such as BTC/ETH/FIL/USD in the pool to meet the needs of users for spot trading and contract trading.

The proportion of risk assets (assets with fluctuating prices) and stable currency assets in the treasury fund pool is 50/50, fluctuating around 5%.

②Spot and contract trading with zero slippage.

Slippage generally refers to the deviation between the actual transaction price and the preset transaction. This deviation will lead to additional losses in the transaction. Slippage also exists in constant product AMM. The greater the slippage, the greater the trader's loss. Slippage may occur due to the quotation mechanism or insufficient trading depth.

In terms of obtaining token transaction prices, Themis Pro improves the quotation trading mechanism and uses multiple oracle information sources, namely Themi treasury fund pool, in conjunction with Chainlink oracle quotations (data from Binance & Coinbase). Multiple oracle information sources not only effectively avoid price slippage caused by the price formula of xy=k, but also effectively solve problems such as malicious pin insertion and hacker attacks on exchanges. After a transaction is generated through this mechanism, the transaction price will not change correspondingly with the asset reserves in the trading pool, effectively achieving zero-slip spot and futures contract transactions.

Aiming at the problem of insufficient transaction depth. Themis Pro adopts a unique capital pool model of "big funds + blue chips" to effectively enhance transaction depth. The Themis Pro capital pool is composed of a basket of blue-chip cryptocurrencies. As long as a single transaction does not exceed the total amount of a certain token in the capital pool, there will be no slippage, greatly improving the user experience of trading crypto assets on DEX.

③The platform has strong revenue feedback capabilities.

According to Themis Pro's smart contract agreement, 70% of the platform's revenue will be used to repurchase the platform currency $THS. Compared with other DEX or CEX, the recovery of 70% is extremely strong, and the remaining 30% will be used for the long-term development of the project. Compared with traditional DEXs with the same amount of TVL, Themis Pro's zero slippage feature will attract more users to use it, and it obviously has stronger revenue capabilities, which will lead to greater repurchase efforts and better prices for the platform token $THS. performance, forming a long-term and effective positive cycle.

④High capital utilization rate.

The zero-slip trading experience allows the vault capital pool to undertake more large-amount transactions. Especially when Themis vault holds a large number of stablecoins, Themis Pro has an irresistible attraction for stablecoin transactions, thus greatly improving the vault. Capital pool capital utilization rate.

The public beta version of Themis Pro's basic functions will be launched on May 7, and derivatives trading must wait for Filecon's IPC to be officially launched.

Decentralized exchange—Themis Swap

AMM stands for Automated Market Maker in English, which means automatic market maker model. Compared with the market maker model of traditional centralized exchanges, under the decentralized market maker model of AMM, everyone can become a liquidity provider. Themis Swap is an AMM (automatic market maker) type DEX built on FVM.

Each user of Themis Swap can add his own tokens to the liquidity pool, become a market maker, and then enjoy trading pair handling fee dividends. Moreover, the liquidity pool funds are controlled by decentralized open source contracts, and all AMM transaction data are uploaded to the chain, making everything transparent. What's more, your asset ownership will not be lost, so the assets are 100% safe, which is impossible to achieve with traditional CEX anyway.

Themis Swap will meet the different transaction needs of users, enrich Filecoin’s ecological application scenarios, and improve the practicality and liquidity of FIL. The public beta version of Themis Swap has been launched on FVM, and users are welcome to experience it.

LSD Protocol - Themis Pool

Liquidity Staking Derivatives, or LSD for short, are certificates that users exchange for by pledging FIL. LSD represents the holder’s pledged assets. Users who hold LSD can enjoy the pledge benefits. When users pledge FIL to Themis Pool, they can obtain the dual benefits of staking and quantitative arbitrage.

① Expect more than 30% of the pledged APY.

Themis Pool introduces liquid staking token tFIL. When FIL token holders deposit FIL into Themis Pool, the protocol will simultaneously mint tFIL tokens and return them to users in return. As a tradable asset, tFIL can be transferred to other wallets, traded on the secondary market, or used in other DeFi protocols.

Before the official release of Themis Pro, it seemed difficult to commit to Themis Pool’s staking FIL rewards due to the lack of real-time data. However, according to calculations, Themis Pool pledgers are almost certain to receive more than 30% APY.

②90% quantitative arbitrage income.

In order to help staking users obtain more benefits, we built an intelligent quantitative arbitrage program based on Themis Pro's underlying layer to help users stake FIL in Themis Pool - Themis Robot.

When the token weight of the Themis treasury pool changes, Themis Robot will detect it in real time and initiate a loan from Themis Pool to mint $THS (the platform currency of Themis Swap and Themis Pro) to achieve arbitrage. The arbitraged $THS will be quoted through the ChainLink oracle, and part of the $THS will be converted into FIL and returned to the Themis Pool. Then, under certain conditions, the profits from arbitrage $THS will be pledged to obtain up to 2650% APY. The profits obtained from the investment return pledge will continue to be converted into FIL and deposited into Themis Pool. Themis Poo assets increase, the price of tFIL increases, and user income increases. Promote the growth of Themis Pool's value capture capabilities and create greater value for users.

90% of this part of the revenue will belong to the pledgers, and Themis Protocol charges 10% of the total revenue as protocol service fees.

Themis Pool is in final testing and will go online in late May.

Public chain infrastructure——Themis Stablecoin

Similar to DAI, fUSD (tentative name) is a decentralized stablecoin minted with FIL as collateral. It is an over-collateralized decentralized stablecoin launched by Themis Protocol on Filecoin Chain. fUSD will be pegged to the US dollar and maintain a price of 1USD .

Having more trading pairs and liquidity scenarios is the key to maintaining liquidity of decentralized stablecoins. fUSD can be exchanged for USDT and USDC at 1:1 with zero slippage in Themis Pro, or it can also be exchanged with zero slippage according to the ChainLink oracle price. Exchange for ETH, BTC, etc. Users can redeem FIL with fUSD by paying a small amount of interest. At the same time, fUSD is also an asset held by Themis Treasury to mint $THS.

Themis Stablecoin is still in the testing phase and is expected to be officially launched in June-July 2023.

Based on the team’s deep involvement in the DeFi field, Themis Protocol has created a new liquidity solution through unique innovation, providing Filecoin ecological participants with: Themis Pro, a decentralized spot and derivatives trading platform, and AMM decentralized trading platform. A full range of liquidity services including exchange, LSD protocol Themis Pool, and FIL mortgage-minted USD stablecoin protocol Themis Stablecoin. Themis Protocol will become one of the important financial engines for the ecological development of Filecoin.

In April 2023, Themis Protocol started IDO and has raised US$1.5 million with nearly 2,000 participants; on May 7, Themis Protocol held an online FVM launch conference, with more than 100 Themis community leaders participating. In the future, Themis Protocol will continue to attract users through online, offline and around the world activities, expand the influence of Themis Protocol, build Themis into the most influential DeFi protocol on FVM, and strive to help Filecoin lock in within one year More than 20 million FIL tokens have established a solid financial foundation for FVM and Filecoin.

#Filecoin #Themis Protocol