Themis log in Blast L2, launching an innovative dual Token economic model

Recently, the decentralized derivatives protocol Themis announced its official entry into the Blast L2 network, launching a brand new Token and economic model to inject new vitality into the decentralized derivatives field.

Themis Protocol launched its IDO on May 13th and reached its hard cap in just 15 days, raising a total of 625 ETH with subscriptions exceeding 2.4 million USD. This enthusiastic market response highlights the unique appeal of Themis Protocol.

Themis Overview

Themis Protocol is a decentralized derivatives trading platform built on Blast L2, designed to provide an efficient, secure, and transparent perpetual trading environment, attracting more users to participate in the decentralized financial market and providing incentives for them. The dual Token economic model of Themis is a core component.

In the decentralized finance market, the economic model is crucial to the success of a project. It not only determines the Token distribution and incentive mechanisms but also affects the project's long-term development and market performance. An excellent economic model can attract more investors and users, driving rapid project growth.

Governance Token THS

THS is the governance Token of Themis Protocol, with a maximum supply of 10 million tokens. The main function of THS is to serve as the voting power for platform governance, and it is also the main value storage point for various revenues of the protocol's derivatives exchange.

THS is an asset-backed cryptocurrency, with all THS minted by the Themis treasury at a rate of 1 coin per 1 US dollar, and a 10% minting tax will be charged for each minting.

The issuance of THS token

The issuance of THS is closely related to the development process of Themis. In the early stages of the project, a genesis minting was conducted through an IDO, with a total of 333,333 THS minted. Among them, 33,333 (10%) are allocated as minting tax, and 300,000 (90%) are used for IDO distribution and adding initial liquidity. The IDO price was 0.0025 ETH, and the initial listing price was 0.0031 ETH.

The subsequent issuance of THS can only be minted through bond sales. By selling LP bonds, the treasury holds all the liquidity of the THS-ETH trading pool.

The minting tax of THS is used for the technical development and maintenance of the protocol, rewards for community node users, and the development fund. Over time, the actual circulation of early THS will gradually increase, but due to factors such as the value of treasury assets, the price of THS, and the profitability of positions at derivative exchanges, it will enter a deflationary phase in the mid to later stages, and the actual circulation will be far below 10 million.

circulation of THS

THS holders can earn rewards through staking, which will compound in the form of sTHS and can be unstaked at any time, but the compounded rewards will be released in equal amounts over 180 days based on blocks. Users can also purchase LP bonds by adding THS-ETH LP liquidity to obtain THS minted from the treasury.

THS's destruction and rights

THS is closely related to the derivatives exchange tbTrade. The treasury acts as the short-term counterparty for all transactions on tbTrade, while THS serves as the long-term counterparty. Therefore, THS possesses strong value capture ability and will be in a deflationary state in the long run.

In most cases, when traders incur losses, 35% of the treasury position's profits are deposited into the national treasury as reserves for minting THS, and 55% is used for repurchasing and destroying THS. In extreme cases, when traders' profits result in an ETH collateral rate of less than 100%, the national treasury contract will enable the reserve to mint THS, which will then be sold to fill the gap in the treasury's ETH pool.

25% of the tbTrade transaction fees will be distributed back to THS stakers, allowing them to earn this portion of transaction fee income in addition to their staking rewards.

Contribution Value Token SC

SC is the contribution value Token of Themis Protocol, with a theoretical maximum supply of 10 billion coins. It is mainly used to reward those who contribute to user growth for the protocol, while also serving as a burning mechanism to accelerate the release of THS staking rewards.

In the genesis phase, 1 million SC will be issued for airdrops and rewards during specific phases. The protocol establishes an initial reserve of 10,000 USDB for SC.

SC's token minting increase

SC is minted by users who stake THS, consuming USDB. THS stakers need to spend an additional 20% of the value of the staked THS in USDB to mint SC in order to earn a high yield of 0.2% compound interest every 8 hours. Of the minted SC, 5% is allocated to the protocol development fund, and 95% is rewarded to the referrer and node users.

The usage rate of SC minting funds is a dynamic variable, initially set at 66%. For every additional 5 million SC, the usage rate decreases by 2%, with a minimum of 50%.

SC redemption and burning

SC holders can accelerate the release of THS staking rewards by burning SC. Users can also redeem SC for USDB from the USDB treasury at real-time prices, subject to a 15% redemption tax.

The SC Token model is designed for unilateral continuous appreciation, with minting, burning, and redeeming SC all leading to an increase in the SC price.

Dual-Currency Economic Model Summary

THS and SC play different roles in Themis's economic model, being interdependent and promoting each other, jointly driving the development of the platform:

1. Inject funds and liquidity into the protocol
2. Maintain the stability and balance of the platform
3. Improve transparency and fairness

The double token economic model of Themis is a core component of its decentralized derivatives trading platform. The interaction between THS and SC will drive the development of the platform, achieve economic balance within the protocol, while enhancing transparency and fairness, and protecting user interests and rights.