Themis: A New Star of Decentralization Derivation Protocol on Blast L2

Recently, the Decentralization derivation protocol Themis announced its official launch on Blast L2 and introduced a new token and economic model, injecting new vitality into the decentralized derivation field.

On May 29, Themis Protocol announced the completion of its THS token IDO, reaching the IDO hard cap within 15 days, raising a total of 625 ETH, with subscription amounts exceeding 2.4 million USD. Such a enthusiastic market response reflects the unique charm of Themis Protocol. This article will delve into Themis Protocol (Blast L2)'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 Blast L2. It aims to attract more users to participate in decentralized financial markets by providing an efficient, secure, and transparent perpetual trading environment, along with incentives and value capture mechanisms. The dual-token economic model of Themis (Blast L2) is a core component of its structure.

In the decentralized financial market, the economic model is crucial to the success of a 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. An excellent 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 role of THS is to serve as a voting right for platform governance, and it is also the primary value storage point for various revenues generated by the protocol derivation trading platform.

$THS is an asset-backed cryptocurrency, with all $THS minted by Themis treasury at a rate of 1 THS for every 1 US dollar. Each time $THS is minted, a 10% minting tax will be charged by the protocol.

THS 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, the 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 IDO distribution and to add initial liquidity. The IDO price was 0.0025ETH, and the initial listing price was 0.0031ETH.

Except for the THS minted during the genesis casting, 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 slowly increase, but due to various factors such as the value of treasury assets, THS price, and profitability of positions in derivation exchanges, it will enter a deflationary phase in the mid to late period, and its actual circulation will be far below 10 million pieces.

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

circulation of THS

1. THS holders can earn staking rewards by staking THS according to the Rebase cycle:

The收益 from staking THS increases compound in the form of sTHS, and can be unstaked at any time, but the compound收益 cannot be obtained immediately and will be released in equal amounts over 180 days according to the blocks. It can be accelerated for release by burning SC, up to a maximum of 30 days.

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 stake it in full, they will receive an additional 5% THS token reward.

The above are two ways THS increases circulation, with the increased circulation coming from the treasury minting.

THS's destruction and rights

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 ability. Over the long term, 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 position are deposited into the treasury as reserves for minting THS, while 55% of the profits from the treasury position are used for repurchasing and burning THS. The circulation of THS decreases, and the price rises. In extreme cases, when traders are profitable and the collateralization ratio of ETH is less than 100%, the treasury contract activates the reserve for minting THS, and then sells it to fill the gap in the treasury's ETH pool.

The ability of tokens to capture the value of the project itself determines the success or failure of the project's token economic design, while 25% of the trading fees from the derivation exchange tbTrade will be returned to THS stakers, meaning that THS stakers can earn this portion of trading fee revenue in addition to the rewards from staking itself.

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 unsatisfactory price performance. However, THS effectively avoids this issue.

Contribution Value Token SC

SC is the contribution value token of Themis Protocol, with a theoretical maximum supply of 1 billion tokens. Its main function 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 million coins, which will be used for airdrops and rewards during specific phases. Apart from the SC issued during the genesis, other SCs are 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 rewards those who contribute to the growth of the protocol 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 the staked THS (USDB) to mint SC tokens in order to obtain a high yield of 0.2% compound interest 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 the referrer and node users.

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

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

SC Price = Total Value of USDB Vault / SC Circulation

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

) redemption and burning of SC

Users holding SC can accelerate the release speed of staking THS rewards by burning SC. This process, due to SC being destroyed, will cause the price of SC to rise as burning SC accelerates the release of THS staking rewards.

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

Therefore, the SC token is a model of one-sided 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 was migrated to Blast, 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 625 ETH IDO fundraising in 15 days and is about to deploy Blast L2?]###https://img-cdn.gateio.im/webp-social/moments-e6f5981ac984aaa5bd94412e0d0d4505.webp(

Dual Currency Economic Model

The governance token THS and the protocol contribution token SC play different roles in the economic model of Themis (Blast L2). The two are interdependent and mutually reinforcing, and together they will drive the development and prosperity of the platform. Specifically, there are several aspects:

1. Inject funds and liquidity into the protocol: The minting and circulation of THS and SC can bring more funds and liquidity to Themis 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 yields promote the positive cycle of the protocol, thereby maintaining the stability and balance of the platform.

3. Improve transparency and fairness: The circulation of THS and SC is completely executed on the smart contract chain, fair and just.

![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(

Summary

The dual token economic model of Themis (Blast L2) is an important component of its Decentralization derivation trading platform. The interaction and impact of the two tokens, THS and SC, will jointly promote the development and prosperity of the platform.

THS, as a governance token, supports 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 can also serve as a burning mechanism to accelerate the release of THS staking rewards. Through the interaction of THS and SC, an economic balance within the protocol is achieved, while also enhancing the transparency and fairness of the platform, protecting the interests and rights of users.

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