Thena Review: Liquidity Layer Of BNB Chain With 2 Revolutionary AMM Models
In this Thena review post, we will explore the underlying technology of Thena, including its unique AMM models and tokenomics. We will also examine its advantages over other Ethereum scaling solutions and its potential for long-term sustainability. Join us as we dive into the world of Thena and discover its capabilities as a decentralized exchange.
Introduction
What is Thena?
Thena is a decentralized exchange that employs the automated market maker (AMM) model and is built on the BNB Chain. Its primary objective is to provide liquidity for the entire BNB Chain ecosystem. Although the Mainnet of Thena was only launched on January 5, 2023, the total value locked (TVL) has already surpassed 100 million USD.
Underlying Technology
The platform utilizes two AMM models, namely:
- vAMM: Similar to Uniswap, this model supports trading volatile assets such as BNB and ETH.
- sAMM: This model, used by Solidly, supports stablecoin pairs.
sAMM — stable pools derived from the Curve pools contract. This type of pool is designed specifically for assets expected to consistently trade at near parity, such as different varieties of stablecoins or synthetics. Traders enjoy tighter spreads and lower price impact. Compared to the vAMM model, the sAMM model allows greater imbalance between two assets before users encounter a significant price impact. These pools allow for larger trades and require less liquidity to work efficiently.
vAMM — traditional Uniswap V2 for volatile assets, which is exceedingly commonplace in the DeFi landscape, as mentioned above.
Users can trade assets at the best available price by combining these two models. Thena is developed based on the entire code from Velodrome for vAMM modeling and Solidly’s code for sAMM modeling. The project is still rigorously checked despite being fully developed, and errors are fixed.
Thena generates revenue from swap orders. When interacting with the Pool using the vAMM mechanism, the transaction fee is 0.2%. With the Pool using the sAMM mechanism, the fee is 0.04%. Additionally, Thena has a referral mechanism that allows investors to earn additional transaction fees from the protocol. Referral fees range from 5% to 12% of the transaction fee and depend on the referrer’s level, which is determined by their total trading volume. The higher the level, the higher the referral fee.
- Tier 1: $0 < V < $30,000 → 5% of trading fees generated by referees
- Tier 2: $30,000 < V < $150,000 → 6,5%
- Tier 3: $150,000 < V < $1,000,000 → 8%
- Tier 4: $1,000,000 < V < $10,000,000 → 10%
- Tier 5: V > $10,000,000 → 12%
Thena on BNB Chain
The decision to use the BNB Chain for Thena was influenced by a number of factors, which can be separated into two main areas: infrastructure and features and opportunity.
In terms of infrastructure and features, BNB Chain’s scalability is a key element that appeals to us, as we aim to reach as many users as possible. Additionally, BNB Chain has deep, in-built connections to the overall Binance ecosystem, which is a benefit. Furthermore, the DeFi ecosystem on the BNB Chain is extensive and relatively well interconnected.
Moving on to opportunity, the current state of liquidity incentives on the BNB Chain is inefficient. The majority of DEX liquidity is located in pools incentivized with centralized and scheduled farming emissions rather than driven by free market forces. This means that LPs’ deposit decisions are not based on fee generation. Thena aims to fix this.
Additionally, current swap prices are suboptimal partly due to the lack of a forward-thinking, modern solution. The majority of DEX liquidity is located in basic, old UniV2-style AMMs, which are highly inefficient for stablecoins and correlated assets. Thena aims to change this, too.
While some cutting-edge tech DEXs are emerging, they are built on a fundamentally dubious premise that “near to zero” swap fee structures are sustainable in order to drive growth. Without fee revenue generation for providers, this approach will likely be a short-term boost with little long-term sustainability. In contrast, Thena is built to last.
How does Thena work
Thena has three main user groups: Traders, Liquidity Providers, and veTHE holders. Traders use Thena to trade crypto assets and pay a transaction fee. Liquidity Providers deposit assets into trading pools to receive transaction fees. veTHE holders lock THE tokens to receive veTHE, which gives them the right to participate in protocol governance, share in revenue, and decide on rewards distribution to the pools.
- veTHE holders are incentivized to vote either for the highest volume pools (because the greater the volume, the greater the number of fees produced as a result) or the ones being bribed by protocols seeking to bootstrap their liquidity. This allows these protocols to create their flywheel if the token generates a substantial volume.
- LPs are incentivized with emissions driven by “Real Yield” based metrics.
- Traders benefit from the low slippage thanks to the liquidity provided, in concert with the latest and greatest battle-tested vAMM / sAMM tech.
Additionally, Protocols have access to a cooperation-oriented liquidity layer. They benefit from capital-efficient trading conditions for their tokens and can incentivize their liquidity via bribes offered to veTHE holders to compensate for the temporary lack of trading activity.
Development team
It should be noted that the team behind Thena has chosen to remain anonymous, and the information provided on their official website is limited. As with any investment, it is recommended that potential investors conduct their own thorough research and exercise caution before making any decisions.
Partner
Thena collaborates with various projects within the BNB Chain ecosystem that either utilize the liquidity provided by Thena or contribute to the liquidity on the exchange.
THE Tokenomics
- Token Name: Thena
- Ticker: THE
- Blockchain: BNB Chain
- Standard: BEP-20
- Total supply: 57,722,260 THE
THE is a BEP-20 utility token utilized by the Thena protocol, which serves two key purposes. Firstly, THE farming rewards are issued to incentivize deep liquidity, aiming to reach and maintain adequate liquidity to ensure optimal trading conditions. Secondly, THE can be utilized to participate in the platform’s governance and encourage decentralized decision-making. The ultimate objective is to attain true decentralization.
veTHE is an ERC-721 governance token represented in the form of an NFT, which serves as a vote-escrowed version of THE. By locking THE tokens for up to two years, users can obtain veTHE, and the longer the locking period, the higher the voting power of the veTHE obtained. The veTHE balance of users will decrease over time until it reaches zero at the end of the initial locking period, to incentivize continual locking and sustained participation from stakeholders. Additionally, veTHE positions can be increased, split, and resold on a secondary market.
theNFT is an ERC-721 founders’ token represented in the form of an NFT, which can be staked for revenue sharing. The staking pool will receive a share of trading fees from THENA and royalties from secondary sales of theNFT.
Emissions specifications
- Weekly emissions (at inception): 2,600,000
- Weekly emissions decay: 1%
- Weekly developer wallet allocation: 2.5% (lowered from 4%)
- Weekly rebase: Up to 30%
- Emissions for liquidity providers: 67.5% (1.5% added from the dev allocation)
Token Allocation
The $THE Protocol has allocated a certain percentage of its initial supply to various purposes, such as airdrops, ecosystem grants, team allocation, and liquidity providers. A portion of the initial supply, specifically 19%, has been allocated to airdrop protocols that have demonstrated their engagement with the protocol’s liquidity layer.
The protocols receiving the airdrop will be updated soon. Meanwhile, 25% of the initial supply has been distributed to regular users of existing BNB Chain protocols and new users through THENA as an airdrop incentive. Those who have demonstrated long-term support and participation in governance will receive the airdrop.
Additionally, 9% of the initial supply has been allocated to theNFT minters, who can claim it at the launch of THENA. This allocation will be divided between veTHE and $THE in a 40:60 ratio. Out of the initial supply, 25% has been dedicated to an ecosystem grant that will be used to support projects that aim to accelerate the growth of THENA.
18% of the initial supply has been distributed among the team members to align their interests with the long-term success of the protocol. The allocation is divided between veTHE and $THE vested tokens. Core team members will have their interests aligned with THENA’s by receiving voted escrow tokens from the initial supply.
This allocation ensures the team has enough initial control over the protocol to achieve the original vision of THENA. Additionally, the initial veTHE team allocation will be kept under THENA’s multisig to prevent any malicious behavior. The allocation has been balanced with vested $THE tokens to encourage fair revenue distribution among stakeholders. The balance between veTHE and $THE vested tokens is 60:40. Finally, 4% of the initial supply has been allocated to provide enough liquidity at launch by pairing it with $BUSD and/or $BNB.
- Protocol Airdrop: 19%
- Airdrop Users: 25%
- Airdrop NFT Minters: 9%
- Ecosystem Grant: 25%
- Team: 18%
- Liquidity Providers: 4%
Utilities of THE
The primary function of THE token is to enable voting rights and participation in the governance system of the protocol. As a token holder, you have the power to receive a portion of the revenue and determine how to distribute the profits to the pools.
At present, you can buy and sell THE tokens on Thena exchange and store them on wallets that support the BEP-20 standard, including Trust Wallet and MetaMask.
Road Map
Conclusion – Thena Review
Overall, Thena is a decentralized exchange that aims to provide liquidity on the BNB Chain ecosystem. It utilizes two models, vAMM and sAMM, to support trading of volatile assets and stablecoin pairs. Users can trade assets at the best available price by combining these two models.
Additionally, it generates revenue from swap orders and has a referral mechanism that allows investors to earn additional transaction fees from the protocol. With its focus on fixing the inefficient liquidity incentives and suboptimal swap prices on BNB Chain, Thena could be an attractive option for traders, liquidity providers, and veTHE holders. However, potential investors should exercise caution due to the anonymous development team and limited information available on the official website.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Thana
Coincu News
Author
Other Reviews
Thena Review: Liquidity Layer Of BNB Chain With 2 Revolutionary AMM Models
In this Thena review post, we will explore the underlying technology of Thena, including its unique AMM models and tokenomics. We will also examine its advantages over other Ethereum scaling solutions and its potential for long-term sustainability. Join us as we dive into the world of Thena and discover its capabilities as a decentralized exchange.
Introduction
What is Thena?
Thena is a decentralized exchange that employs the automated market maker (AMM) model and is built on the BNB Chain. Its primary objective is to provide liquidity for the entire BNB Chain ecosystem. Although the Mainnet of Thena was only launched on January 5, 2023, the total value locked (TVL) has already surpassed 100 million USD.
Underlying Technology
The platform utilizes two AMM models, namely:
- vAMM: Similar to Uniswap, this model supports trading volatile assets such as BNB and ETH.
- sAMM: This model, used by Solidly, supports stablecoin pairs.
sAMM — stable pools derived from the Curve pools contract. This type of pool is designed specifically for assets expected to consistently trade at near parity, such as different varieties of stablecoins or synthetics. Traders enjoy tighter spreads and lower price impact. Compared to the vAMM model, the sAMM model allows greater imbalance between two assets before users encounter a significant price impact. These pools allow for larger trades and require less liquidity to work efficiently.
vAMM — traditional Uniswap V2 for volatile assets, which is exceedingly commonplace in the DeFi landscape, as mentioned above.
Users can trade assets at the best available price by combining these two models. Thena is developed based on the entire code from Velodrome for vAMM modeling and Solidly’s code for sAMM modeling. The project is still rigorously checked despite being fully developed, and errors are fixed.
Thena generates revenue from swap orders. When interacting with the Pool using the vAMM mechanism, the transaction fee is 0.2%. With the Pool using the sAMM mechanism, the fee is 0.04%. Additionally, Thena has a referral mechanism that allows investors to earn additional transaction fees from the protocol. Referral fees range from 5% to 12% of the transaction fee and depend on the referrer’s level, which is determined by their total trading volume. The higher the level, the higher the referral fee.
- Tier 1: $0 < V < $30,000 → 5% of trading fees generated by referees
- Tier 2: $30,000 < V < $150,000 → 6,5%
- Tier 3: $150,000 < V < $1,000,000 → 8%
- Tier 4: $1,000,000 < V < $10,000,000 → 10%
- Tier 5: V > $10,000,000 → 12%
Thena on BNB Chain
The decision to use the BNB Chain for Thena was influenced by a number of factors, which can be separated into two main areas: infrastructure and features and opportunity.
In terms of infrastructure and features, BNB Chain’s scalability is a key element that appeals to us, as we aim to reach as many users as possible. Additionally, BNB Chain has deep, in-built connections to the overall Binance ecosystem, which is a benefit. Furthermore, the DeFi ecosystem on the BNB Chain is extensive and relatively well interconnected.
Moving on to opportunity, the current state of liquidity incentives on the BNB Chain is inefficient. The majority of DEX liquidity is located in pools incentivized with centralized and scheduled farming emissions rather than driven by free market forces. This means that LPs’ deposit decisions are not based on fee generation. Thena aims to fix this.
Additionally, current swap prices are suboptimal partly due to the lack of a forward-thinking, modern solution. The majority of DEX liquidity is located in basic, old UniV2-style AMMs, which are highly inefficient for stablecoins and correlated assets. Thena aims to change this, too.
While some cutting-edge tech DEXs are emerging, they are built on a fundamentally dubious premise that “near to zero” swap fee structures are sustainable in order to drive growth. Without fee revenue generation for providers, this approach will likely be a short-term boost with little long-term sustainability. In contrast, Thena is built to last.
How does Thena work
Thena has three main user groups: Traders, Liquidity Providers, and veTHE holders. Traders use Thena to trade crypto assets and pay a transaction fee. Liquidity Providers deposit assets into trading pools to receive transaction fees. veTHE holders lock THE tokens to receive veTHE, which gives them the right to participate in protocol governance, share in revenue, and decide on rewards distribution to the pools.
- veTHE holders are incentivized to vote either for the highest volume pools (because the greater the volume, the greater the number of fees produced as a result) or the ones being bribed by protocols seeking to bootstrap their liquidity. This allows these protocols to create their flywheel if the token generates a substantial volume.
- LPs are incentivized with emissions driven by “Real Yield” based metrics.
- Traders benefit from the low slippage thanks to the liquidity provided, in concert with the latest and greatest battle-tested vAMM / sAMM tech.
Additionally, Protocols have access to a cooperation-oriented liquidity layer. They benefit from capital-efficient trading conditions for their tokens and can incentivize their liquidity via bribes offered to veTHE holders to compensate for the temporary lack of trading activity.
Development team
It should be noted that the team behind Thena has chosen to remain anonymous, and the information provided on their official website is limited. As with any investment, it is recommended that potential investors conduct their own thorough research and exercise caution before making any decisions.
Partner
Thena collaborates with various projects within the BNB Chain ecosystem that either utilize the liquidity provided by Thena or contribute to the liquidity on the exchange.
THE Tokenomics
- Token Name: Thena
- Ticker: THE
- Blockchain: BNB Chain
- Standard: BEP-20
- Total supply: 57,722,260 THE
THE is a BEP-20 utility token utilized by the Thena protocol, which serves two key purposes. Firstly, THE farming rewards are issued to incentivize deep liquidity, aiming to reach and maintain adequate liquidity to ensure optimal trading conditions. Secondly, THE can be utilized to participate in the platform’s governance and encourage decentralized decision-making. The ultimate objective is to attain true decentralization.
veTHE is an ERC-721 governance token represented in the form of an NFT, which serves as a vote-escrowed version of THE. By locking THE tokens for up to two years, users can obtain veTHE, and the longer the locking period, the higher the voting power of the veTHE obtained. The veTHE balance of users will decrease over time until it reaches zero at the end of the initial locking period, to incentivize continual locking and sustained participation from stakeholders. Additionally, veTHE positions can be increased, split, and resold on a secondary market.
theNFT is an ERC-721 founders’ token represented in the form of an NFT, which can be staked for revenue sharing. The staking pool will receive a share of trading fees from THENA and royalties from secondary sales of theNFT.
Emissions specifications
- Weekly emissions (at inception): 2,600,000
- Weekly emissions decay: 1%
- Weekly developer wallet allocation: 2.5% (lowered from 4%)
- Weekly rebase: Up to 30%
- Emissions for liquidity providers: 67.5% (1.5% added from the dev allocation)
Token Allocation
The $THE Protocol has allocated a certain percentage of its initial supply to various purposes, such as airdrops, ecosystem grants, team allocation, and liquidity providers. A portion of the initial supply, specifically 19%, has been allocated to airdrop protocols that have demonstrated their engagement with the protocol’s liquidity layer.
The protocols receiving the airdrop will be updated soon. Meanwhile, 25% of the initial supply has been distributed to regular users of existing BNB Chain protocols and new users through THENA as an airdrop incentive. Those who have demonstrated long-term support and participation in governance will receive the airdrop.
Additionally, 9% of the initial supply has been allocated to theNFT minters, who can claim it at the launch of THENA. This allocation will be divided between veTHE and $THE in a 40:60 ratio. Out of the initial supply, 25% has been dedicated to an ecosystem grant that will be used to support projects that aim to accelerate the growth of THENA.
18% of the initial supply has been distributed among the team members to align their interests with the long-term success of the protocol. The allocation is divided between veTHE and $THE vested tokens. Core team members will have their interests aligned with THENA’s by receiving voted escrow tokens from the initial supply.
This allocation ensures the team has enough initial control over the protocol to achieve the original vision of THENA. Additionally, the initial veTHE team allocation will be kept under THENA’s multisig to prevent any malicious behavior. The allocation has been balanced with vested $THE tokens to encourage fair revenue distribution among stakeholders. The balance between veTHE and $THE vested tokens is 60:40. Finally, 4% of the initial supply has been allocated to provide enough liquidity at launch by pairing it with $BUSD and/or $BNB.
- Protocol Airdrop: 19%
- Airdrop Users: 25%
- Airdrop NFT Minters: 9%
- Ecosystem Grant: 25%
- Team: 18%
- Liquidity Providers: 4%
Utilities of THE
The primary function of THE token is to enable voting rights and participation in the governance system of the protocol. As a token holder, you have the power to receive a portion of the revenue and determine how to distribute the profits to the pools.
At present, you can buy and sell THE tokens on Thena exchange and store them on wallets that support the BEP-20 standard, including Trust Wallet and MetaMask.
Road Map
Conclusion – Thena Review
Overall, Thena is a decentralized exchange that aims to provide liquidity on the BNB Chain ecosystem. It utilizes two models, vAMM and sAMM, to support trading of volatile assets and stablecoin pairs. Users can trade assets at the best available price by combining these two models.
Additionally, it generates revenue from swap orders and has a referral mechanism that allows investors to earn additional transaction fees from the protocol. With its focus on fixing the inefficient liquidity incentives and suboptimal swap prices on BNB Chain, Thena could be an attractive option for traders, liquidity providers, and veTHE holders. However, potential investors should exercise caution due to the anonymous development team and limited information available on the official website.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Thana
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