Themis Protocol: An all-in-one DeFi platform, powering the full growth of Filecoin

Themis Protocol: A DeFi platform for Filecoin growth.

On October 15, 2020 at 22:44, the Filecoin network block height reached 148,888, and the mainnet was officially launched. After the mainnet went online, the data volume of Filecoin quickly expanded. By May 2023, the Filecoin network’s effective computing power had reached 20.1021 EiB. However, due to the lack of support for smart contracts, Filecoin’s functionality was limited and could 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. With the introduction of FVM, Filecoin realizes storage + retrieval + programmable smart contracts and will support the development of DeFi, GameFi, NFT…It can be foreseen that the Filecoin ecosystem is about to usher in an explosion.

The development of the Filecoin ecosystem cannot be separated from the support of liquidity. Themis Protocol was born to provide financial infrastructure for the Filecoin public chain. Themis Protocol is an important DeFi Lego on Filecoin, which is an aggregate protocol that covers AMM exchanges, LSD, stablecoins, and derivative trading, and provides a series of supporting DeFi services for participants in the Filecoin ecosystem.

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The product portfolio of Themis Protocol includes: ① Themis Pro: a decentralized spot and derivative trading platform based on FVM② Themis Swap: an AMM-based decentralized exchange based on FVM③ Themis Pool: an LSD protocol provided to FIL holders and SPs④ Themis Stablecoin: a protocol for minting dollar stablecoins collateralized by FIL.

Core product-Themis Pro

The DeFi’s Summer of 2020 brought tremendous liquidity and infrastructure growth to the blockchain ecosystem. When the tide receded, problems such as impermanent loss and excessive slippage began to emerge. Based on the advantages of DeFi protocols such as Curve, Olympus, and GMX, Themis Protocol improved the liquidity incentive scheme and quotation mechanism and launched Themis Pro. The LAAS (liquidity as a service) advocated by Themis Pro is the only way for the second revolution of DeFi.

As the core product of Themis Protocol, Themis Pro is a decentralized spot and derivative trading aggregation platform based on Ve(3,3) on FVM. Through innovation, Themis Pro has unique advantages such as a unique fund pool system, zero slippage trading mechanism, strong platform revenue feedback ability, and high fund utilization rate.

① A unique fund pool system.

Themis Pro is different from traditional CEX and DEX in that it does not use AMM and order book mechanisms, but instead uses the Themis Treasury Fund as a counterparty for users’ spot and contract trading. The Treasury Fund is composed of a basket of blue-chip cryptocurrencies, including mainstream crypto assets such as BTC/ETH/FIL/USD and stablecoins, to meet the needs of users for spot and contract trading.

The ratio of risk assets (price-volatile assets) and stablecoin assets in the Treasury Fund is 50/50, with a fluctuation of about 5% up and down.

②Zero-slippage spot and contract trading.

Slippage generally refers to the deviation between the actual transaction price and the preset transaction price, which will result in additional losses in trading. Slippage also exists in constant product AMMs, and the larger the slippage, the greater the trader’s losses. Slippage may be caused by the pricing mechanism or insufficient trading depth.

In terms of token trading price acquisition, Themis Pro has improved the quoting trading mechanism, using multiple oracle information sources, namely the Themis Treasury Fund, together with Chainlink oracle quotes (data from Binance & Coinbase). Multiple oracle information sources not only effectively avoid price slippage caused by the xy=k price formula, but also effectively solve the problems of exchange malicious plug-ins, hacker attacks, and so on. Through this mechanism, after a trade is generated, the trade price will not change correspondingly with the asset reserves in the trading pool, effectively achieving zero-slippage spot and futures contract trading.

To address the problem of insufficient trading depth, Themis Pro uses a unique Treasury Fund model of “large funds + blue-chip” to effectively increase trading depth. The Themis Pro Treasury Fund is composed of a package of blue-chip cryptocurrencies. As long as a single transaction does not exceed the total amount of a certain token in the fund, there is no slippage, greatly improving users’ experience in trading encrypted assets on DEX.

③Strong platform revenue feedback capability.

According to the Themis Pro smart contract protocol, 70% of the platform’s revenue will be used to buy back the platform coin $THS. Compared with other DEXs or CEXs, the 70% buyback intensity is extremely high, and the remaining 30% will be used for the project’s long-term development. Compared with traditional DEXs with the same TVL, Themis Pro’s zero-slippage feature will attract more users, obviously with stronger revenue-generating capabilities, thereby bringing about greater buyback power for the platform coin $THS and better price performance, forming a long-term and effective positive cycle.

④ High utilization rate of funds.

Zero-slippage trading experience enables the Themis treasury to handle more large transactions, especially when Themis treasury holds a large amount of stablecoins. Themis Pro has an irresistible appeal to stablecoin trading, which greatly increases the utilization rate of the treasury fund pool.

The basic function of Themis Pro public beta version was launched on May 7th, and derivative trading will wait for the official launch of Filecon’s IPC.

Themis Swap – Decentralized Exchange

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

Every user of Themis Swap can add their own tokens to the liquidity pool and become a liquidity provider, and then enjoy the transaction fee dividends. And the liquidity pool funds are controlled by decentralized open-source contracts, and all AMM transaction data is recorded on the chain, making everything transparent. More importantly, your asset ownership will not be lost, so your assets are 100% safe, which is impossible for traditional CEX to achieve.

Themis Swap will meet users’ different trading needs, enrich Filecoin’s ecological application scenarios, and improve the practicality and liquidity of FIL. Themis Swap public beta version is already online on FVM, and users are welcome to experience it.

LSD Protocol – Themis Pool

Liquidity Staking Derivatives, abbreviated as LSD, are vouchers that users exchange for pledging FIL, and LSD represents the holder’s pledged assets. Holders of LSD can enjoy pledge income. When users pledge FIL to Themis Pool, they can get dual benefits of pledge and quantitative arbitrage.

① It is expected to exceed 30% of pledge APY.

Themis Pool introduces liquidity pledge tokens tFIL. When FIL token holders deposit FIL into Themis Pool, the protocol will also mint tFIL tokens to be returned to users as rewards. tFIL, as a tradable asset, can be transferred to other wallets, traded on the secondary market, or used in other DeFi protocols.

Before the official launch of Themis Pro, it seems difficult to make a commitment to Themis Pool’s pledge FIL rewards due to the lack of real-time data. However, according to calculations, pledge providers of Themis Pool can almost certainly get an APY of more than 30%.

② 90% of quantified arbitrage profits.

To help staking users earn more profits, we have built Themis Robot, an intelligent quantified arbitrage program based on the Themis Pro underlying system for users who stake FIL in Themis Pool. When the token weight of Themis Treasury pool changes, Themis Robot will detect it in real time and initiate borrowing and casting $THS (the platform currency of Themis Swap and Themis Pro) to achieve arbitrage in Themis Pool. The arbitrage $THS will be priced by the ChainLink oracle, and part of the $THS will be exchanged for FIL and returned to Themis Pool. Then, under specific conditions, the arbitrage profits $THS will be staked to earn up to 2650% APY, and the profits earned from staking will continue to be exchanged for FIL and stored in Themis Pool. As a result, the assets of Themis Pool increase, the price of tFIL rises, and user profits increase, which helps to increase the value capture ability of Themis Pool and create greater value for users.

90% of this portion of the profits will belong to the staker, while Themis Protocol will charge 10% of the total profits as a protocol service fee.

Themis Pool is undergoing final testing and will be launched 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 a decentralized stablecoin with excess collateral launched by Themis Protocol on Filecoin Chain. fUSD is pegged to the US dollar and maintains a price of 1 USD.

More trading pairs and liquidity scenarios are key to maintaining the liquidity of decentralized stablecoins. fUSD can be exchanged for USDT and USDC at a zero slippage rate of 1:1 in Themis Pro, and for ETH, BTC, and other cryptocurrencies at a zero slippage rate based on the price of the ChainLink oracle. Users can redeem FIL with fUSD by paying a small amount of interest, and fUSD is also an asset for casting $THS in Themis Treasury.

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

Based on the team’s deep cultivation in the DeFi field, Themis Protocol has created a brand-new liquidity solution through unique innovations, providing Filecoin ecosystem participants with all-round liquidity services including Themis Pro, a universal decentralized spot and derivative trading platform, an AMM-type decentralized exchange, the LSD protocol Themis Pool, and the FIL-staked minting USD stablecoin protocol Themis Stablecoin. Themis Protocol will become one of the important financial engines for the development of the Filecoin ecosystem.

In April 2023, Themis Protocol started its IDO and raised $1.5 million with nearly 2,000 participants. On May 7th, Themis Protocol held a FVM launch event with over 100 Themis community leaders attending. Going forward, Themis Protocol will continue to attract users through online, offline, and worldwide activities, expand the influence of Themis protocol, and build it into the most influential DeFi protocol on FVM. We aim to help Filecoin lock in more than 20 million FIL tokens within one year, and establish a solid financial foundation for FVM and Filecoin.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!