STEP ONE : Acquisition of Thena.fi
Vanguard is proposing for Venus to make the strategic acquisition of 33% of Thena.fi, with the goal of establishing The DeFi SuperApp on the BNB Chain. After several months of negotiations with Thena’s leadership, Vanguard’s leadership has reached an agreement on a purchase price of $4.5 million dollars.
This acquisition represents a pivotal move for Venus, significantly strengthening both protocols’ positions within the rapidly evolving DeFi ecosystem, particularly on the BNB Chain. By leveraging Thena’s modular liquidity layer and advanced decentralized exchange (DEX) infrastructure, Venus gains access to enhanced liquidity, while promoting its native stablecoin (VAI) and token (XVS) through high-priority incentivized pools.
The partnership also opens the door to a variety of synergistic opportunities, including unique yield strategies, DAO-to-DAO governance collaboration, and the development of cutting-edge DeFi solutions, such as integrated lending and leveraged yield farming. In an increasingly competitive DeFi landscape, this acquisition not only expands Venus’ ecosystem and user base but also cements its position as a key infrastructure player within the BNB Chain ecosystem.
This acquisition is not only strategic but also transformative, positioning Venus at the forefront of DeFi innovation. This partnership solidifies Venus’ role as a central infrastructure provider, enhances its market competitiveness, and unlocks significant value for its users and stakeholders. As the DeFi landscape continues to evolve, this acquisition ensures that Venus remains a dominant force, driving long-term growth and establishing a solid foundation for future success.
This acquisition includes a range of valuable assets that will significantly contribute to Venus revenue streams. These assets include 33% of the current Thena Treasury assets:
- veTHE holdings: 3.68 million veTHE, valued at approximately $3 million.
- NFT Portfolio: 170 NFTs, collectively worth $500,000, which represent around 1% of the fees generated by Thena’s decentralized exchange (DEX).
- Liquidity Reserves: 1.6 million USDT, ensuring robust liquidity for the protocol.
- $THE Emissions: A 2.5% share of the weekly $THE emissions, equating to 25,000 $THE per week.
- Fee Revenues: A 12% stake in the fees generated by non-staked positions, further bolstering ongoing revenue potential.
Together, these assets provide a strong foundation for consistent, long-term revenue generation, enhancing Venus DAO’s financial position and supporting its strategic objectives within the DeFi ecosystem.
Thena.fi Post acquisition Strategic Business Value
1. Liquidity Depth and Incentivized Markets
Venus relies on liquidity for efficient borrowing and lending, while THENA excels as a modular liquidity layer. THENA can become Venus’ primary DEX for sourcing and scaling liquidity for their markets.
- Venus could deposit part of their treasury funds into THENA’s liquidity pools, ensuring deeper liquidity for their assets while earning yields.
- THENA could boost Venus’ native assets (like XVS and VAI) in high-priority incentivized pools. By incentivizing these pools, both protocols ensure robust liquidity, making VAI more attractive as a stablecoin and XVS more accessible for traders.
2. Stablecoin (VAI) Adoption Through THENA’s Ecosystem
VAI, Venus’ stablecoin, benefits from adoption in DeFi ecosystems, while THENA’s platform can thrive by integrating VAI as a key asset in its liquidity pools and trading pairs.
- Create VAI-focused liquidity pairs (e.g., VAI/BNB, VAI/USDT, VAI/THENA) on THENA’s AMM, incentivizing trading activity and boosting VAI adoption.
3. Enhanced Yield Opportunities for Venus and THENA Users
Venus users who deposit assets into the protocol can benefit from leveraging these assets in THENA’s AMM or other DeFi tools.
- THENA’s liquidity providers could stake their LP tokens as collateral on Venus to unlock borrowing/lending opportunities, creating a two-way flow between protocols.
- THENA’s limit orders on their AMM can be staked on Venus to provide liquidity while earning extra yields.
4. Strategic DAO-to-DAO Collaboration
Both Venus DAO and THENA govern their ecosystems. By working closely at the DAO level, the partnership ensures alignment on long-term goals and the flexibility to launch joint initiatives.
- Venus DAO’s acquisition would result in the acquisition of 1.11M veTHE which could be used to secure voting power to direct incentives toward their native assets (e.g., XVS, VAI).
- Jointly launch co-governance proposals that align liquidity incentives, stablecoin adoption, and ecosystem growth.
- Use Venus’ DAO tools to promote participation in THENA’s governance, creating a united front across the BNB Chain ecosystem.
5. Shared User Base and Ecosystem Growth
Both protocols target a similar audience of DeFi users on BNB Chain, making cross-promotion an effective way to increase user adoption.
- Cross-promote features like Venus lending and THENA trading via marketing campaigns, educational content, and referral programs to onboard users to both platforms.
- Collaborate on launch events (e.g., co-branded trading competitions or liquidity mining campaigns) to increase user engagement.
- Introduce NFTs or badges tied to ecosystem participation (e.g., for using both Venus and THENA), creating gamification opportunities that reward loyal users.
6. DEFI Launchpad Initiative:
By combining THENA’s upcoming Launchpad (WARP) and its advanced liquidity management expertise with Venus’ deep connections in lending and borrowing markets, both protocols will establish a DeFi-focused Launchpad as the go-to platform for new projects wanting to be listed on Thena and Venus. .
- Fundraising for DeFi Projects: Jointly launch DeFi-focused fundraising initiatives under the Launchpads, attracting projects that align with the trading and lending verticals.
- Liquidity Strategies and Management: Offer a comprehensive suite of liquidity tools for projects post-launch. THENA’s AMM can ensure trading market depth, while Venus can offer lending/borrowing infrastructure to drive ecosystem-wide utility for project tokens.
- Ecosystem Connectivity: Promote projects launching through the DeFi Launchpad within both THENA’s trading ecosystem and Venus’ lending market. For example:
- Tokens from Launchpad projects can be integrated as collateral on Venus, immediately giving them utility in lending markets.
- THENA could offer exclusive liquidity pools for these tokens, incentivizing trading volume through ARENA and creating liquidity depth.
- Revenue Sharing: Introduce revenue-sharing models for both protocols, generating passive income for Venus and THENA from project fundraising, trading fees, and lending interests.
- Use VAI in Launchpad: Require participating projects to allocate a portion of their fundraising or liquidity in VAI, boosting stablecoin adoption and adding utility.
7. Dominating Market Share on BNB Chain
By combining their liquidity (THENA) and lending capabilities (Venus), both protocols can dominate their respective niches and attract new users and protocols to the BNB Chain ecosystem.
- Jointly promote the narrative of a “BNB Chain SuperApp” featuring world-class trading (THENA) and lending (Venus).
- Launch exclusive partnerships with other protocols on BNB Chain, leveraging both ecosystems’ reach to onboard new projects, assets, and users.
8. Direct Integration of Venus Product Suite into THENA’s ve(3,3) Model with Hooks
THENA’s upcoming ve(3,3) hooks enable sophisticated liquidity management and additional yield strategies. Integrating Venus’ lending and borrowing capabilities into THENA’s liquidity pools allows users to maximize capital efficiency and access advanced DeFi strategies directly through THENA.
A.) Limit Orders via Single-Sided Liquidity on THENA
THENA’s ve(3,3) model with hooks can allow users to provide single-sided liquidity on THENA AMM pools while routing the unused liquidity to Venus as collateral. For example:
- A user providing single-sided liquidity (e.g., in BNB) could earn trading fees from the AMM and simultaneously generate additional yield by depositing the BNB into Venus’ lending market.
- This allows THENA users to execute limit orders or deploy idle liquidity without sacrificing earning potential.
B.) Idle Liquidity Optimization
Idle liquidity sitting on THENA (from traders or liquidity providers) could be programmatically routed to Venus:
- Example Use Case: Liquidity providers who stake in THENA pools could have their idle capital automatically deposited into Venus, generating additional interest or rewards until the liquidity is actively used in the AMM.
- This creates a dual-yield scenario, combining DEX trading fees with lending interest on Venus.
C.) Pseudo Delta-Neutral Strategies
Delta-neutral strategies are possible through seamless integration between Venus and THENA. Users could:
- Deposit collateral (e.g., BNB, ETH) on Venus to borrow stablecoins like VAI.
- Use the borrowed stablecoins to provide liquidity in a VAI/BNB pool on THENA, earning trading fees while maintaining a hedged position.
- THENA’s ve(3,3) hooks could automate the management of such strategies, making them accessible to a broader user base without requiring complex manual steps.
D.) Leveraged Yield Farming via Isolated Pools
Leveraged yield farming strategies become possible by leveraging THENA’s LP tokens as collateral on Venus:
- Users could provide liquidity on THENA and receive LP tokens in return.
- Those LP tokens could then be deposited into isolated pools on Venus as collateral, allowing users to borrow assets to increase their farming positions.
- Example: A user provides BNB/USDT liquidity on THENA, deposits the LP tokens on Venus, borrows additional BNB or USDT, and repeats the process to maximize farming rewards.
- The isolated pool model ensures the risk of over-leverage is limited to specific LP tokens, protecting Venus’ protocol-wide liquidity.
9. Unlocking New Strategies and User Flows
The combination of THENA’s ve(3,3) modular liquidity layer and Venus’ lending infrastructure creates powerful user flows that unlock unique DeFi opportunities, including:
- Capital Efficiency for Traders:
- Traders can leverage Venus’ lending infrastructure to take positions directly on THENA by borrowing assets (e.g., USDT or BNB) and providing liquidity on THENA.
- The ability to earn both trading fees and lending interest significantly improves capital efficiency compared to standalone trading or lending strategies.
- Improved Liquidity Utilization:
- THENA’s liquidity pools become yield-optimized, as hooks automatically route idle or unutilized liquidity into Venus to generate lending yield.
- This improves overall capital efficiency for liquidity providers on THENA.
- Cross-Protocol Yield Strategies:
- THENA could support one-click strategies (e.g., delta-neutral yield farming or leveraged farming) that integrate Venus’ lending and borrowing capabilities directly within the THENA app, simplifying access for retail users.
- Boosting Demand for VAI:
- The integration creates natural demand for VAI, as users adopt stablecoin-based strategies (e.g., borrowing VAI on Venus to provide liquidity on THENA’s AMM).
- THENA could launch VAI-focused pools and incentivize them to drive usage and adoption.
10. Competitive Differentiation and Market Leadership
- Unique Offering: The ability to combine modular liquidity management (THENA’s ve(3,3)) with lending markets (Venus) creates a DeFi experience not currently offered by most other protocols on BNB Chain.
- User Acquisition: By promoting these unique strategies, THENA and Venus can attract both sophisticated DeFi users and new entrants looking for simplified access to yield and leverage strategies.
- Ecosystem Leadership: Together, Venus and THENA position themselves as core infrastructure for DeFi on BNB Chain, driving innovation and creating stickiness in their respective ecosystems.