Themis Protocol's New Economic Model Analysis on Blast L2

Recently, the decentralized derivatives protocol Themis announced its official launch on Blast L2, introducing a new token and economic model to inject new vitality into the decentralized derivatives space. Themis Protocol began its IDO on May 13 and reached its hard cap within 15 days, raising a total of 625 ETH, with subscription amounts exceeding 2.4 million USD. 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 based on Blast L2, designed to provide an efficient, secure, and transparent perpetual trading environment, attracting more users to participate in the decentralized finance market and providing incentives. The dual-token economic model of Themis is a significant component, having an important impact on the project's long-term development and market performance.

Governance Token THS

THS is the governance token of Themis Protocol, with a maximum supply of 10 million. The main functions of THS include:

1. Voting rights as part of platform governance
2. As the main value storage point for various revenues of the protocol derivatives exchange.

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

THS Minting and Issuance

The issuance of THS is closely related to the development history of Themis:

• Early stage Genesis minting through IDO, with a total of 333,333 THS.
• Subsequent issuance of THS can only be minted through bond sales.
• The treasury holds 100% liquidity of the THS-ETH trading pool.

The actual circulation of THS is influenced by various factors, and in the later stages, it will enter a deflationary phase, where the actual circulation may be far below 10 million coins.

circulation of THS

THS holders can earn profits through the following methods:

1. Staking THS earns staking rewards according to the Rebase cycle.
2. Add THS-ETH LP liquidity to purchase LP bonds and obtain THS minted by the treasury.

THS destruction and rights

THS is closely related to the derivatives exchange tbTrade:

• 35% of the profits from the treasury position are deposited into the national treasury as reserves for minting THS.
• 55% of the vault position profits are used to buy back and destroy THS
• 25% of the trading fees from the derivatives exchange tbTrade will be returned to THS stakers.

Contribution Value Token SC

SC is the protocol contribution value token of Themis Protocol, with a theoretical maximum supply of 1 billion tokens. The main functions of SC include:

1. Rewards those who contribute to the growth of protocol users.
2. As a burning mechanism, accelerating the release of THS staking rewards.

SC's minting and issuance increase

SC is minted by users who stake THS, and the minting will consume USDB. The process of minting SC will cause the price of SC to rise.

Redemption and Burn of SC

SC holders can:

1. Burning SC accelerates the release speed of THS staking rewards.
2. Redeem USDB from the USDB vault at the real-time price, subject to a 15% redemption tax.

The SC token is a model of one-sided continuous price increase, where minting, burning, and redemption all contribute to the continuous rise in the SC price.

The Role of Dual-Currency Economic Model

THS and SC play different roles in Themis's economic model, interdependent and mutually reinforcing:

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

The dual-token economic model of Themis achieves economic balance within the protocol through the interaction of THS and SC, while enhancing the platform's transparency and fairness, protecting the interests and rights of users.