Themis Protocol Deploys Blast L2, Dual Token Economic Model Attracts Follow

Recently, the decentralized derivatives protocol Themis announced its official launch on the Blast L2 network, introducing a new Token and economic model to inject new vitality into the decentralized derivatives space.

Themis Protocol launched its IDO on May 13 and reached its hard cap in just 15 days, raising 625 ETH with subscription amounts exceeding 2.4 million USD. Such a booming market response has sparked people's interest in Themis Protocol. This article will provide a detailed introduction to Themis Protocol's dual-token economic model on Blast L2, including the governance token $THS and the contribution value token $SC.

Themis Overview

The Themis Protocol is a decentralized derivatives trading platform built on Blast L2, aimed at attracting more users to participate in the decentralized financial market by providing an efficient, secure, and transparent perpetual trading environment, along with corresponding incentives. The dual-token economic model of Themis on Blast L2 is a key component.

In the decentralized finance 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. An excellent economic model can attract more investors and users, thereby driving rapid project development.

Governance Token THS

THS is the governance Token of Themis Protocol, with a maximum supply of 10 million coins. The main role of THS is to serve as a voting right for platform governance, and it is also the primary value storage point for various revenue streams of the protocol's derivative exchange.

$THS is an asset-backed cryptocurrency, with all $THS minted at a rate of 1 THS per $1 by the Themis treasury. Each time $THS is minted, the protocol will charge a 10% minting tax.

THS's minting and issuance

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

Except for the THS minted during the genesis, the subsequent issuance of THS can only be minted through bond sales. By selling LP bonds, the treasury holds 100% liquidity of the THS-ETH trading pool.

The minting tax 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 early THS will gradually increase, but due to various factors such as the value of treasury assets, THS price, and the position profits of derivative exchanges, it will enter a deflationary phase in the later period, with its actual circulation far below 10 million coins.

Circulation of THS

1. THS holders can earn staking rewards by staking THS during the Rebase period.
2. Users can also purchase LP bonds by adding THS-ETH LP liquidity to obtain THS minted by the treasury.

The destruction and rights of THS

The governance Token THS has a close relationship with the derivatives exchange tbTrade. The treasury serves as the short-term counterparty for all transactions on tbTrade, while THS acts as the long-term counterparty. Therefore, THS has a strong value capture capability. Over a long period, THS will be in a deflationary state, and the price performance of THS will also outperform similar products.

In most cases, traders incur losses, and 35% of the profits from the treasury positions are deposited into the treasury as reserve funds for minting THS, while 55% is used for repurchasing and burning THS. In extreme cases, when traders are profitable and the collateral ratio of ETH is below 100%, the treasury contract activates the reserve funds to mint THS, which is then sold to fill the gap in the treasury's ETH pool.

25% of the trading fees on the derivatives exchange tbTrade will be returned to THS stakers, meaning that THS stakers can earn this portion of trading fee revenue in addition to their staking rewards.

Contribution Value Token SC

SC is the protocol contribution value Token of Themis Protocol, with a theoretical maximum supply of 1 billion coins. It is primarily used to reward those who contribute to the growth of protocol users, and it can also serve as a burning mechanism to accelerate the release of THS staking rewards.

SC's minting and issuance increase

SC is minted by users who stake THS, and minting will consume USDB. THS stakers need to spend an additional 20% of the value of the staked THS (USDB) to mint SC Token in order to earn a high yield of 0.2% compound interest every 8 hours.

SC redemption and burning

Users holding SC can accelerate the release speed of THS staking rewards by burning SC. In addition, users can redeem SC for USDB at real-time prices from the USDB treasury, and a 15% redemption tax will be charged for redeeming SC for USDB.

The SC Token is a model of unilateral continuous appreciation, where minting SC, burning SC, and redeeming SC for USDB will all lead to a continuous increase in the price of SC.

Dual-Currency Economic Model

The governance token THS and the protocol contribution token SC play different roles in Themis's economic model. They are interdependent and mutually beneficial, and will jointly promote the development and prosperity of the platform. Specifically, there are several aspects:

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

The dual-token economic model of Themis on Blast L2 is an important component of its decentralized derivatives trading platform. The interaction and impact of the two tokens, THS and SC, will jointly promote the development and prosperity of the platform. Through the interaction of THS and SC, an economic balance within the protocol is achieved, while also enhancing the platform's transparency and fairness, protecting the interests and rights of users.