Themis Pro version will be officially launched. What has been brewing behind the 3 iterations?

Source: Themis

The recently discussed Themis Pro in the community is finally coming! On April 2, Themis's official website (https://themis.capital) will be newly upgraded and launched, announcing that Themis Pro will officially launch in late April.

Themis Pro is a next-generation decentralized trading platform for crypto asset spot and derivatives aggregation built on the FVM public chain, based on the Ve(3,3) model. Its product iterations are rapid, with the latest version set to be released in late April, following the previous launches of Themis V1 and Themis V2.

Most DeFi projects attract those seeking short-term incentives. Themis pursues sustainable development of its products, focusing on creating a sustainable model that continuously generates value for users. From V1 to V2, and now to the latest Themis Pro, each iteration is an evolution and upgrade that connects the past and the future.

Below, we outline the origins of the Themis protocol and the product iteration process for a more comprehensive understanding of Themis Pro.

Themis V1: A Protocol with Value-Supported Liquidity

The core members of the Themis protocol team come from the CryptoPunk organization in Stuttgart, Germany, an anonymous team that advocates for technological freedom and pursues craftsmanship. They have never stopped trying to solve DeFi issues for the beliefs they hold.

The concept of the Themis protocol was born in early 2022, or possibly even earlier. At that time, DeFi TVL had been continuously declining from its peak of $165 billion, liquidity was drying up, and signs of the LUNA collapse, Three Arrows Capital's bad debt liquidation, and even the FTX explosion may have already been apparent. To break the deadlock of market liquidity exhaustion, the young Themis team began designing a liquidity solution supported by value.

After several months of closed development, Themis V1 officially launched on the BSC chain in April 2022.

Subsequently, under the careful operation of the team, the project developed rapidly. By November 2022, Themis's treasury held over $6,400,000 in assets, including $1,800,000 in USDT and $4,600,000 in THS-USDT LP.

The greatest achievement of Themis V1 was the design of a value-based liquidity framework protocol.

Themis V1 provided a core mechanism supported by $THS treasury at $1. Each THS in the treasury is not created out of thin air but is backed by $1, meaning that for every THS held, there is an equivalent amount of dollars deposited.

We can see that Themis V1 adopted a minimalist style in its model design, summarized in one sentence: the minimum support price for the $THS minted by the protocol is $1. Under the 1:1 dollar support, THS serves as the value scale and circulation means of the Themis ecosystem, reflecting real redeemable value.

In Themis V1, liquidity is managed by the Themis protocol, and the THS token is proof of liquidity ownership. The treasury mechanism of Themis provides a value foundation for the long-term development of the protocol, serving as the fundamental support for the protocol's liquidity.

Themis V2: Addressing Inflation Issues

The problem of rapid development leading to inflation is unavoidable, and this situation also appeared in the early Themis V1. In the early stages of the Themis project, various measures were conducive to attracting sufficient funds into the treasury pool, as there was arbitrage space, and users were eager to use funds to mint $THS, causing the Themis treasury to expand rapidly.

Themis V2 is an optimized version launched in January 2023, primarily aimed at addressing the inflation problem accumulated by the protocol to maintain the robust long-term development of the Themis ecosystem.

We know that there are many methods to curb inflation, including controlling money supply, increasing users, price adjustments, and structural adjustments, among a basket of measures. Themis V2 comprehensively adopts the above measures for structured automatic adjustments. It introduced a contribution token $SC participation mechanism, where to obtain medium to high returns on THS in Themis V2, $SC must be burned, and SC must be obtained through community outreach to invite users. Community outreach invites users to introduce new users to the system, and medium to high returns from burning SC use price mechanisms to control THS output.

Looking back, Themis V2 is not a complex version upgrade, but it addresses the protocol's inflation issue and fixes the security risks caused by Themis's rapid development.

Themis Pro: A Shift in Market Strategy

Compared to the transition from V1 to V2, Themis Pro represents a leap in iteration, a further upgrade of the economic model, and an enhancement of the ecosystem, evolving from a purely DeFi protocol into a platform that provides convenience for users while continuously creating value.

The Themis team realized that this was not a simple product optimization but a complex architectural upgrade, renaming this version to Themis Pro to shape the brand.

The Themis team is optimistic about the Filecoin ecosystem, as its ecological value will gradually increase with the launch of FVM. After repeated discussions, the team made the strategic decision to deploy Themis Pro on the FVM public chain.

Filecoin has entered the FVM ecological era. With timely iterations and ecological development of FVM, more Ethereum applications will shift to using FVM, increasing the deflationary demand for FIL, as more FIL will be used for locking, paying GAS fees, staking, etc. This situation will provide good support for FIL prices, and the connected ecosystems, such as Themis Pro, will also benefit from it.

In the Themis Pro version, the Ve(3,3) model will also have a positive feedback effect on the FVM ecosystem. The compounding mechanism of the Ve(3,3) model and high APY returns can easily create a siphoning effect under current market conditions, attracting a large amount of blue-chip crypto assets into Themis, rapidly establishing the largest FIL trading pool on FVM.

In terms of protocol upgrades, Themis Pro introduces a treasury fund pool mechanism, composed of a basket of highly liquid blue-chip cryptocurrencies, ensuring the liquidity of the pool. The treasury fund pool achieves a self-regulating mechanism to automatically balance the pool token functions, and with the oracle price discovery mechanism, it can automatically incentivize liquidity to join when liquidity is insufficient.

Additionally, Themis Pro has introduced the SC token mechanism. Specifically, under the Ve(3,3) mechanism, $SC can be burned to obtain high-yield THS, and to stake $THS for medium to high returns, $SC must be burned. Staking rewards accelerate the release of burned SC tokens, and staking $SC can earn veSC rewards, where veSC has the right to 20% of platform profits and can earn rewards by participating in bribery elections using veSC.

Conclusion

Now we can revisit the fact that Themis Pro initially had inflation defects, but through continuous product iterations and active communication with the community, it ultimately eliminated bubbles and loopholes in the process of moving towards a growth flywheel (rather than a reverse death spiral).

In the DeFi world, innovation is particularly important; even a small revolution can lead to significant gains. LP liquidity mining, which now seems extremely ordinary, was first successfully pioneered by Sushiswap, achieving tremendous success. DeFi protocols will only become increasingly complex, which is evident, making technical capability crucial.

Themis Pro has always been on the path of innovation, with each technical iteration containing numerous innovative points, including optimizing the Ve(3,3) model, treasury fund pool liquidity management, and price discovery mechanisms.

The iterative evolution of Themis Pro truly reflects the characteristics of web3, with each iteration aimed at promoting community development rather than just benefiting the team and project parties. All community members have created the platform, which belongs to every individual in the community, not to any particular group or a small number of people.

Themis is committed to becoming a sustainable DEFI ecosystem, where iteration and community are the sources of vitality for crypto products. Themis Pro is not the ultimate version. We also look forward to more protocols that dare to innovate, injecting more vitality into the entire DeFi field.