Introduction:
This proposal presents a plan to start a long term relationship between Venus and THENA. The proposal is notably structured with the involvement of ANKR, one of THENA’s key partners and stakeholder, to strengthen the mutual value creation between Venus and THENA.
Proposal overview:
1. Listing of $THE in Venus
- $THE to be listed in the DeFi isolated market of Venus
- THENA to provide $10k worth of $THE tokens to be emitted over 1 month to help other project in the DeFi market seeding the markets
2. To scale $XVS-$ankrBNB liquidity pool on THENA
- THENA to open a $XVS-$ankrBNB Concentrated Liquidity pool with automated liquidity management by Gamma Strategies.
- Venus to deposit weekly bribes in THENA over a 6 weeks period (bribing amount subject to the governance voting result).
- ANKR to support Venus’ bribing effort with a $1k bribe deposit per week.
Background:
THENA is DEX that was designed to be a “protocol for protocols”, with tokenomics carefully designed to enable a capital efficient, open and permissionless liquidity layer that any protocols can branch into to incentivize their liquidity.
On the tech side of things, THENA offers a wide range of pools that corners any type needs, including Stable pools, Univ2 pool and user-friendly Concentrated Liquidity Pools.
Underlying mechanism of bribes and $THE incentives:
THENA leverages an adapted version of ve(3,3) tokenomics, derived from the ve-tokenomics originally designed by Curve. It offers an open marketplace for incentives with a built-in “bribing” marketplace. On THENA, LPs (liquidity providers) are incentivized to stake their liquidity for $THE emissions, the DEX’s utility token. $THE can be locked up to 2 years to get veTHE, the governance token of THENA. Emissions are 100% controlled by veTHE holders in a decentralized manner, based on weekly (Epoch) votes.
When veTHE holders vote to channel $THE emissions, they receive the revenue generated by the pool over the last EPOCH. Pools revenue consists of :
- Swap fees generated by the pool. Hence the higher the volumes of a pair, the higher $THE emissions will receive the pool.
- Bribes deposited by THENA’s whitelisted partners. Bribes are a custom amount of token deposited by a third party to “influence” veTHE holders to allocate votes and secure $THE emissions on top of a pool.
Bribes are the common tool to bootstrap and build a deep liquidity pool on THENA. If the pool starts generating enough volumes, the fees will substitute for the bribes to get sustainable $THE emissions over the long run.
To list $THE in Venus - Benefits & specifications
Benefits:
- Onboarding THENA community on Venus.
- Possibility to build advanced strategies involving LPing in THENA and supplying/borrowing $THE, $ANKR or $ankrBNB in Venus.
Specification:
- THENA to bootstrap the supply side of the market with a $10k $THE incentive program, emitted over 30 days.
- THENA to secure a Binance oracle for $THE prior to the listing.
To scale a $XVS-$ankrBNB liquidity pool on THENA - Benefits & specifications
State of $XVS liquidity in BNB chain DEXs:
Specification:
- THENA to open a $XVS-$ankrBNB FUSION pool. FUSION pools are user friendly Concentrated Liquidity Pools powered by Algebra and managed by GAMMA.
- Venus deposits weekly bribes in THENA over a 6 weeks period in order to bootstrap a deep liquidity pool that will in turn become self-incentivized (cf Background section)
- ANKR to support Venus in its bribing effort with $1k weekly bribes.
Benefits:
- FUSION pools generate on average 4x more fees than Univ2 type of pools. GAMMA maximizes the fee generation while mitigating the Impermanent Loss risk faced by LPs.
- Venus can decrease its cost of incentive thanks to ANKR bribing support.
- After the 6 weeks bribing program, the $XVS-$ankrBNB pool would be deep enough to generate enough fees to attract veTHE holders vote on a self-sustained way.
Expected outcome of weekly bribes:
- Considering THENA as a less mature DEX, required APR should be around 30% during the first weeks, before decreasing as the TVL increases.
- The pool will receive between 1.2$ and 1.7$ worth of $THE tokens per 1$ deposited as bribes.
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Bribe ROI = Value of $THE tokens emitted on top of the the $XVS-$ankrBNB pool in EPOCH n+1 / Value of the bribes deposited by Venus in EPOCH n. ROI > 1 means the protocols is generating profit.
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Given the past months data, on average bribing ROI ranges between 1.2x up to 1.7x
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Emissions attracted = Bribes deposited * ROI of Bribes (ie the value of $THE received per 1$ deposited as bribes).
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Expected TVL in the $XVS-$ankrBNB pool = (Emissions received by the pool over week / Equilibrium APRs required by users for the pool) * 52 (ie the number of week in a year, since displayed APRs are annualized by definition).
Risks:
- Smart contracts risk.
- Exploit or failure of THENA.
Risk Mitigation:
- THENA is non-custodial.
- THENA v1 has been audited by Peckshield. THENA v2 has been audited by OpenZeppelin. Ongoing Immunefi bug bounty program of $150k.
Useful links:
