Themis Protocol launches a new economic model, injecting new vitality into the field of Decentralization derivation.

Recently, a well-known Decentralization derivation protocol Themis announced its official launch on a certain L2 network and introduced a brand new token and economic model, adding new vitality to the Decentralization derivation track.

Themis Protocol conducted its IDO on May 13 on its official website and announced the completion of the THS token IDO on May 29. Within just 15 days, the IDO reached its hard cap, raising 625 ETH, with subscription amounts exceeding $2.4 million. Such a booming market response has sparked curiosity about Themis Protocol. This article will provide a detailed introduction to Themis Protocol's dual-token economic model, including the governance token $THS and the contribution value token $SC.

Themis Overview

Themis Protocol is a decentralized derivation trading platform built on a certain L2 network, aimed at attracting more users to participate in the decentralized finance market and providing incentives and value capture by offering an efficient, secure, and transparent perpetual trading environment. The dual-token economic model of Themis is an important component.

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

Governance Token THS

THS is the governance token of Themis Protocol, with a maximum supply of 10 million. 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 from the protocol derivation exchange.

$THS is an asset-backed cryptocurrency, with all $THS minted by Themis Treasury at a rate of 1 THS for every 1 dollar. A 10% minting tax will be charged each time $THS is minted.

THS's minting 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 an 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 IDO distribution and to add initial liquidity. The IDO price was 0.0025 ETH, and the initial listing price was 0.0031 ETH, with 625 ETH raised in the IDO.

Except for the THS minted at 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; however, due to various factors affecting its actual supply, such as the value of treasury assets, the price of THS, and the profitability of positions on derivation exchanges, it will enter a deflationary phase in the middle and later stages, with its actual circulation being far below 10M.

The risk-free value of treasury assets ( Treasury-RFV ) (in USD) is the minting cap of THS.

circulation of THS

1. THS holders can earn staking rewards by staking THS during the Rebase period:

The income from THS staking increases in the form of sTHS through compound interest, and can be unstaked at any time. However, the compound interest earnings cannot be obtained immediately and will be released in equal amounts over 180 days according to the blocks. The release speed can be accelerated to a maximum of 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 fully stake it, they will receive an additional 5% THS token reward.

The above are two ways THS increases circulation, and the increased circulation comes from the treasury minting.

the destruction and equity of THS

The governance token THS has a close relationship with the derivation 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 capability. In the long run, THS will be in a deflationary state, and the price performance of THS will outperform similar products.

In most cases, traders incur losses, and 35% of the profits from the treasury positions are deposited into the national treasury as reserves for minting THS, while 55% of the profits from the treasury positions are used to repurchase and destroy THS. The circulation of THS decreases, and the price rises. In extreme cases, when traders are profitable and the collateralization rate of ETH is less than 100%, the treasury contract activates the reserve fund to mint THS, which is then sold to fill the gap in the treasury's ETH pool.

The ability of tokens to capture value for the project itself determines the success of the token economic design of the project, while 25% of the trading fees from the derivatives exchange tbTrade will be returned to THS stakers, meaning that THS stakers can earn not only from their staking rewards but also from this portion of trading fee revenue.

Many DeFi protocols have a weak correlation between the governance tokens and the value of the protocol itself, leading to poor value capture ability for the governance tokens, and thus their price performance is not ideal. However, THS effectively avoids this issue.

Contribution Value Token SC

SC is the protocol contribution token of Themis Protocol, with a theoretical maximum supply of 1 billion tokens. Its main purpose is 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.

The SC Genesis phase will issue 1,000,000 coins, which will be used for airdrops and rewards during specific phases. Apart from the SC issued during the Genesis, all other SC will be minted by the protocol, which establishes an initial treasury of 10,000 USDB for SC.

SC's minting and issuance increase

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

THS stakers need to spend an additional 20% of the value of their staked THS (USDB) to mint SC tokens in order to earn a high compound yield of 0.2% every 8 hours. The minted funds will enter the USDB treasury, with 5% of the minted SC allocated as a protocol development fund, and the remaining 95% will be rewarded to referrers and node users.

The $SC coin usage ratio ( is a dynamic variable, initially set at 66%. For every increase of 5 million SC, the usage ratio decreases by 2%, with a minimum usage ratio of 50%, which occurs when the total amount of SC reaches 40 million.

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

SC price = total value of USDB treasury / SC circulation

Due to the existence of capital utilization rates, the increase speed of the USDB treasury will always be faster than the issuance speed of SC. The larger the issuance amount of SC, the faster the increase speed of the USDB treasury. Therefore, minting and increasing the issuance of SC will result in a higher SC price.

) redemption and burning of SC

Users who hold SC can accelerate the release speed of THS staking rewards by burning SC. This process involves the destruction of SC; therefore, burning SC to accelerate the release of THS staking rewards will lead to an increase in the price of SC.

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

Therefore, the SC token is a model of unilateral continuous appreciation, summarized as follows: minting SC, burning SC, and redeeming SC for USDB will continuously drive up the price of SC. The optimization of the SC model is an important innovation after the Themis protocol is migrated to a certain L2 network, and this mechanism will play a crucial role in the launch of the protocol and subsequent user growth.

![What is the charm of Themis Protocol, which completed 625ETH of IDO fundraising in 15 days and is about to deploy Blast L2?]###https://img-cdn.gateio.im/webp-social/moments-959a690d919112b21d7e05776f4df8c2.webp(

Dual-Currency Economic Model

The governance token THS and the protocol contribution value token SC play different roles in Themis's economic model. They are interdependent and mutually reinforcing, and together they will drive the platform's development and prosperity. Specifically, there are several aspects:

1. Injecting funds and liquidity into the protocol: The minting and circulation of THS and SC can bring more funds and liquidity to Themis's treasury and vault, promoting 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 earnings promote a 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 is completely executed on-chain through smart contracts, ensuring fairness and impartiality.

![What is the charm of Themis Protocol, which completed a 625ETH IDO fundraising in 15 days and is about to deploy Blast L2?])https://img-cdn.gateio.im/webp-social/moments-e6f5981ac984aaa5bd94412e0d0d4505.webp(

Summary

The dual-token economic model of Themis is an important component of its Decentralization derivation trading platform. The interaction and influence of the two tokens, THS and SC, will jointly promote the development and prosperity of the platform.

THS, as a governance token, provides support for the governance and development of the platform, while also serving as a reward mechanism to incentivize users to participate in the construction and development of the platform. SC, as a contribution value token, is used to reward those who contribute to the growth of protocol users, and it can also be used as a burning mechanism to accelerate the release of THS staking rewards. Through the interaction of THS and SC, economic balance within the protocol is achieved, while also enhancing the platform's transparency and fairness, protecting the interests and rights of users.

![What is the charm of Themis Protocol, which completed an IDO fundraising of 625 ETH in 15 days and is about to deploy Blast L2?])https://img-cdn.gateio.im/webp-social/moments-6de7fe0990b880d869a225d720832177.webp(

![What is the charm of Themis Protocol, which completed 625 ETH in IDO fundraising in 15 days and is about to deploy Blast L2?])https://img-cdn.gateio.im/webp-social/moments-6e10019165679a4d46267cc55b83e076.webp(