Exploring the DeFi Protocol THENA (THE)

Advanced1/16/2025, 2:01:16 AM
This article focuses on THENA, a decentralized exchange (DEX) protocol in the DeFi ecosystem. It introduces its core features, technical architecture, ecosystem projects, and team background, while analyzing how its innovative liquidity solutions enhance user experience and market competitiveness.

What is THENA?


Source: THENA Official Website

THENA is a decentralized exchange and liquidity layer built on BNB Chain and opBNB, combining governance and liquidity incentives through the ve(3,3) tokenomics model. Its architecture draws on Curve’s vote-escrow model and Olympus’ anti-dilution mechanism, enabling token holders to fully participate in protocol decisions via veTHE tokens. THENA supports a variety of AMM models, including stable pools for stablecoin trading, volatile pools for non-stable assets, and concentrated liquidity pools to enhance capital efficiency, providing flexible solutions for different types of trading needs.

Regarding technical implementation, THENA adopts a modular AMM architecture integrated with Algebra, supporting fine-grained customization through plugins to achieve features such as dynamic fee adjustments and automatic rebalancing. The platform also collaborates with Automated Liquidity Managers (ALM) to provide automated strategies for liquidity providers, effectively reducing operational costs and optimizing capital utilization. At the same time, with functions such as limit orders and best-price orders, THENA offers users a trading experience close to centralized exchanges.

THENA has built a complete DeFi ecosystem product matrix, including the spot exchange THENA, the perpetual contract platform ALPHA with up to 60x leverage, the gamified trading competition platform ARENA, and the upcoming project incubation platform WARP. These products meet users’ trading needs in spot and derivatives markets and enhance user engagement through competitions and other means.

As the native liquidity hub of BNB Chain, THENA’s vision is to become a true DeFi super app. It is currently developing cross-chain bridges, fiat on-ramps, and wallet abstraction functionalities, with plans to introduce debit cards and banking services in the future, providing users with more convenient payment and asset management experiences. By continuously optimizing the modular liquidity layer, THENA is committed to delivering customized solutions for assets such as stablecoins, LSTs, and RWAs, establishing itself as an indispensable liquidity infrastructure within the BNB Chain ecosystem.

Why is THENA needed?

The DeFi ecosystem has experienced significant growth driven by liquidity mining and DEXs based on UNI V2, but existing liquidity incentive mechanisms suffer from severe inefficiencies. Traditional DEXs use semi-fixed incentive structures, often resulting in low capital efficiency and failing to maximize stakeholder profits. Additionally, smaller protocols struggle to obtain the necessary liquidity support due to their inability to generate sufficient trading volume. THENA addresses these industry pain points by offering a more efficient and flexible liquidity solution through its innovative ve(3,3) tokenomics model and diversified AMM architecture.

THENA’s core innovation lies not only in its unique gauge voting mechanism but also in its improvements to the ve(3,3) model, adoption of a dual AMM model, and deep integration with BNB Chain. Inspired by Curve Finance’s “vote-escrow” model, the voting mechanism allows veTHE token holders to determine emission levels through periodic votes and uses bribery markets to incentivize the required voting support for protocols. Compared to traditional designs, THENA further optimizes the tokenomics model, ensuring alignment between token holders and liquidity providers while offering more flexible liquidity options through its dual AMM model. Additionally, THENA’s codebase is a restructured version of Solidly, enhancing fee revenues and effectively compensating liquidity providers for impermanent loss, thereby promoting efficient capital utilization within the ecosystem.

For liquidity providers, THENA introduces Automated Liquidity Managers (ALM) and a diversified AMM model, offering more flexible management tools and customized market-making strategies. These innovations not only reduce management costs but also significantly improve capital efficiency. Meanwhile, the platform supports advanced features such as flash loans and Time-Weighted Average Price (TWAP), providing professional users with more trading options.

For ordinary users, THENA offers a trading experience comparable to centralized exchanges, including professional features like limit orders and best-price orders. The upcoming cross-chain bridge, fiat on-ramp, and wallet abstraction functionalities will enhance user experience. Through a comprehensive product matrix—encompassing spot trading, perpetual contracts, and trading competitions—THENA meets users’ diverse trading needs.

Practical Applications of THENA

One practical use case of THENA is ALPHA, an innovative decentralized perpetual contract exchange (DEX) developed by SYMMIO and hosted on THENA. ALPHA enables users to trade with up to 60x leverage across more than 150 cryptocurrency assets.


Official diagram (Source: THENA documentation)

Its core adopts an Intent-Based model, seamlessly connecting on-chain DeFi users with third-party entities called “hedgers.” These hedgers provide liquidity in a trustless manner, responding to users’ trading intents. Inspired by the Request-for-Quote (RFQ) model, hedgers automatically fulfill DeFi users’ perpetual trading needs, creating a permissionless on-chain derivatives market. ALPHA’s infrastructure also introduces the first Automated Market Maker with Frequent Quotes (AMFQ) engine, which cleverly combines the advantages of order books and AMM.

Through a symmetric on-chain protocol, ALPHA ensures that the counterparty risk of each trading position is isolated and fully collateralized with assets locked in the cross-margin accounts of both parties. This design enables the system to operate in a completely trustless manner. In this bilateral protocol, one party’s gain corresponds directly to the other’s loss, effectively ensuring the security of funds and fairness in trading.

Compared to traditional models, ALPHA’s design significantly reduces system inefficiencies and eliminates excessive reliance on oracles, providing a more efficient and stable trading environment.

Another use case is THENA’s Liquidity Open Market, which leverages the veTHE voting system to enable protocols to personalize liquidity management by incentivizing deposits through voting. This mechanism allows protocols to guide, expand, and maintain appropriate liquidity levels according to their needs, directing liquidity to the most productive pools. Protocols can solve the cold-start problem for liquidity by depositing vote incentives and manage pools flexibly with weekly adjustments, ensuring the market remains active and efficient.

THENA’s ve(3,3) tokenomics structure supports a self-optimizing liquidity allocation mechanism. Based on trading volume and fee generation, liquidity is automatically directed to the most valuable pools, maximizing system revenue and optimizing user experience. Additionally, users must participate in weekly voting to claim their vote rewards and trading fees.

Vote incentive claims follow a cyclical structure, with each epoch lasting one week (Thursday to the following Thursday). Any whitelisted tokens can be used as incentive deposits, but they must be deposited before the weekly epoch transition (Wednesday to Thursday 00:00 UTC).

Technical Details of THENA

To further enhance trading efficiency and price execution, THENA’s swap engine integrates the ORBS Liquidity Hub, an optimization layer built atop AMM. ORBS leverages external liquidity sources (such as on-chain solvers and decentralized orders) to improve price execution and reduce the impact of price volatility on users. If the ORBS Liquidity Hub cannot offer a better price, the trade falls back to the AMM contract, ensuring transaction stability and reliability.


Official diagram (Source: THENA documentation)

THENA’s user interface abstracts the complexity of the liquidity hub, providing a seamless and intuitive trading experience. Through on-chain solver auctions and API access to decentralized orders, institutions and professional traders can submit bids and compete to complete swap transactions. This flexible design not only improves trading efficiency but also enhances the liquidity and accessibility of DeFi trading, further optimizing the ecosystem’s overall trading experience.

Another technical detail is the hybrid model developed by THENA—SYMMIO—which balances the advantages of centralized and decentralized systems. SYMMIO acts as a marketplace, facilitating third-party (hedger) order execution. Hedgers can operate across multiple exchanges (e.g., Binance, Bybit, KuCoin, Bitfinex) and even engage in market-making or structured products. Anyone interested can join via Discord or contact the SYMMIO team directly. SYMMIO’s design operates independently of external actions, with on-chain counterparty risks covered by on-chain capital, ensuring a trustless environment.

A common hedging strategy involves filling intents and opening opposite positions on centralized exchanges (CEXs), using delta-neutral strategies to replicate risk-free operations while reducing collateral requirements. SYMMIO’s system is isolated from off-chain activities; even if hedgers operate off-chain or hedge using centralized exchanges, on-chain events remain unaffected. SYMMIO does not rely on hedgers to execute hedges, as on-chain contracts are independent of external behaviors.


SYMMIO’s role in trading (Source: THENA documentation)

Advantages and Disadvantages of THENA

Advantages

  1. Diverse Products and Services

    • Offers spot trading, perpetual contract trading, trading competitions, etc., catering to various needs of users and institutions.
    • Modular liquidity layer supports multiple asset classes (stablecoins, LSTs, tokenized RWAs, memecoins) with high flexibility.
  2. Customized Liquidity Management

    • Implements the ve(3,3) tokenomics model and a weekly incentive deposit mechanism, enabling customized liquidity pools based on partner needs.
    • Automated Liquidity Managers (ALM) and various AMM models (vAMM, sAMM) optimize pool management and enhance market efficiency.
  3. Security and Decentralization

    • Ensures transaction security through decentralized exchanges (DEX) and on-chain liquidity, avoiding risks associated with centralized platforms.
    • Provides leveraged trading (e.g., ALPHA perpetual contracts) to enhance trading functionality.
  4. Low Slippage Trading Experience

    • Utilizes a swap engine and ODOS routing technology to achieve low-slippage trading, ensuring users complete transactions at optimal prices.

Disadvantages

  1. High User Threshold

    • The platform’s complex features may require significant time for new users to familiarize themselves with ve(3,3), AMM models, ALM, and other advanced functions, posing a challenge for those with limited DeFi experience.
  2. Intense Market Competition

    • Faces strong competition from established DEX platforms like Uniswap and SushiSwap, requiring continuous innovation and optimization to maintain market share.
  3. Liquidity Dependence

    • The platform’s core advantages rely heavily on liquidity providers (LPs); a reduction in liquidity could lead to decreased trading efficiency and stability.
  4. Leverage Trading Risks

    • High-leverage trading (e.g., ALPHA perpetual contracts) is sensitive to market volatility, exposing users to higher liquidation risks during extreme price fluctuations, which may impact platform stability and user trust.

Funding and Roadmap


THENA Roadmap (Source: THENA documentation)

In December 2023, THENA secured a strategic investment of $600,000 from Orbs, providing the necessary capital and marking the beginning of a new chapter. This investment supports THENA’s innovations and reflects the shared commitment between Orbs and THENA to decentralized development. Earlier in June of the same year, THENA had already integrated Orbs’ dLIMIT and dTWAP features, enhancing trading capabilities and enabling users to execute limit orders and algorithmic trading strategies.

In September, THENA also received strategic funding from BNB Chain to support the development of its SocialFi platform, THENA ARENA. This grant demonstrates THENA’s commitment to becoming a business development hub and liquidity layer within the BNB Chain ecosystem, driving innovation and growth in DeFi.

Tokenomics

THENA has launched three tokens: $THE, veTHE, and theNFT.


THENA Tokenomics (Source: THENA documentation)

$THE — The BEP-20 utility token of the protocol. The emission reduction of $THE has two main goals: achieving and maintaining sufficient liquidity to ensure optimal trading conditions, and encouraging decentralized governance. $THE can be used to participate in governance, driving the platform’s continuous development and ultimately achieving true decentralization.

veTHE — An ERC-721 governance token in NFT form. veTHE is the vote-escrowed version of $THE, allowing users to lock $THE tokens for up to two years to obtain veTHE. The longer the lock-up period, the greater the voting power. veTHE positions can be increased, split, and resold on secondary markets. veTHE holders receive a share of the platform’s revenue, including 90% of total transaction fees and 10% of the protocol’s deposited vote incentives.

theNFT — An ERC-721 founder token issued in NFT form. theNFT is a non-dilutive NFT collection that can be staked for revenue sharing. The staking pool receives 10% of THENA’s total transaction fees, along with royalties from secondary sales.

19% of veTHE’s initial supply is allocated to airdrop protocols, with TVL, trading volume, and product features considered in the evaluation to balance native BNB protocols and those from other chains. The list of protocols receiving airdrops will be updated once finalized. 25% of the initial supply is distributed to regular users of existing BNB Chain protocols and new users onboarded through THENA, rewarding behaviors that promote long-term stability, such as locking, stacking, holding, and governance participation. 9% is allocated to theNFT minters, claimable upon THENA’s launch, with 40% of the airdrop balance locked as veTHE (2-year lock) and 60% as $THE.

25% of the initial supply is allocated to a growth fund to accelerate THENA’s development, supporting shortlisted projects including smart contract development, marketing, and business expansion. 18% is allocated to the team to ensure long-term participation, balanced between veTHE and $THE, with 60% as veTHE (locked for 2 years) and 40% as $THE (2-year vesting period, 1-year cliff). 4% of the initial supply is reserved to ensure sufficient liquidity, paired with $BUSD and/or $BNB.

veTHE holders, liquidity providers (LPs), users, and protocols will dynamically determine the emissions of $THE through the ve(3,3) model. veTHE holders and LPs earn rewards through voting and liquidity incentives, traders benefit from low slippage, and protocols can promote liquidity by offering incentives.

Conclusion

As a decentralized ecosystem centered on DeFi, THENA combines the advantages of liquidity, governance, and market mechanisms. Through optimized liquidity management, decentralized governance, and cross-chain functionality, THENA provides users with a low-cost, high-efficiency trading experience while promoting the growth of the DeFi ecosystem.

However, despite its significant advantages in decentralization, liquidity allocation, and governance, its complex tokenomics and incentive mechanisms may present challenges for some users in understanding and participating.

With ongoing technical and functional optimizations, THENA has the potential to secure a significant position in the DeFi space, driving the advancement of decentralized finance.

Author: Oxaya
Translator: Piper
Reviewer(s): SimonLiu、Edward、Elisa
Translation Reviewer(s): Ashely、Joyce
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
* This article may not be reproduced, transmitted or copied without referencing Gate.io. Contravention is an infringement of Copyright Act and may be subject to legal action.

Exploring the DeFi Protocol THENA (THE)

Advanced1/16/2025, 2:01:16 AM
This article focuses on THENA, a decentralized exchange (DEX) protocol in the DeFi ecosystem. It introduces its core features, technical architecture, ecosystem projects, and team background, while analyzing how its innovative liquidity solutions enhance user experience and market competitiveness.

What is THENA?


Source: THENA Official Website

THENA is a decentralized exchange and liquidity layer built on BNB Chain and opBNB, combining governance and liquidity incentives through the ve(3,3) tokenomics model. Its architecture draws on Curve’s vote-escrow model and Olympus’ anti-dilution mechanism, enabling token holders to fully participate in protocol decisions via veTHE tokens. THENA supports a variety of AMM models, including stable pools for stablecoin trading, volatile pools for non-stable assets, and concentrated liquidity pools to enhance capital efficiency, providing flexible solutions for different types of trading needs.

Regarding technical implementation, THENA adopts a modular AMM architecture integrated with Algebra, supporting fine-grained customization through plugins to achieve features such as dynamic fee adjustments and automatic rebalancing. The platform also collaborates with Automated Liquidity Managers (ALM) to provide automated strategies for liquidity providers, effectively reducing operational costs and optimizing capital utilization. At the same time, with functions such as limit orders and best-price orders, THENA offers users a trading experience close to centralized exchanges.

THENA has built a complete DeFi ecosystem product matrix, including the spot exchange THENA, the perpetual contract platform ALPHA with up to 60x leverage, the gamified trading competition platform ARENA, and the upcoming project incubation platform WARP. These products meet users’ trading needs in spot and derivatives markets and enhance user engagement through competitions and other means.

As the native liquidity hub of BNB Chain, THENA’s vision is to become a true DeFi super app. It is currently developing cross-chain bridges, fiat on-ramps, and wallet abstraction functionalities, with plans to introduce debit cards and banking services in the future, providing users with more convenient payment and asset management experiences. By continuously optimizing the modular liquidity layer, THENA is committed to delivering customized solutions for assets such as stablecoins, LSTs, and RWAs, establishing itself as an indispensable liquidity infrastructure within the BNB Chain ecosystem.

Why is THENA needed?

The DeFi ecosystem has experienced significant growth driven by liquidity mining and DEXs based on UNI V2, but existing liquidity incentive mechanisms suffer from severe inefficiencies. Traditional DEXs use semi-fixed incentive structures, often resulting in low capital efficiency and failing to maximize stakeholder profits. Additionally, smaller protocols struggle to obtain the necessary liquidity support due to their inability to generate sufficient trading volume. THENA addresses these industry pain points by offering a more efficient and flexible liquidity solution through its innovative ve(3,3) tokenomics model and diversified AMM architecture.

THENA’s core innovation lies not only in its unique gauge voting mechanism but also in its improvements to the ve(3,3) model, adoption of a dual AMM model, and deep integration with BNB Chain. Inspired by Curve Finance’s “vote-escrow” model, the voting mechanism allows veTHE token holders to determine emission levels through periodic votes and uses bribery markets to incentivize the required voting support for protocols. Compared to traditional designs, THENA further optimizes the tokenomics model, ensuring alignment between token holders and liquidity providers while offering more flexible liquidity options through its dual AMM model. Additionally, THENA’s codebase is a restructured version of Solidly, enhancing fee revenues and effectively compensating liquidity providers for impermanent loss, thereby promoting efficient capital utilization within the ecosystem.

For liquidity providers, THENA introduces Automated Liquidity Managers (ALM) and a diversified AMM model, offering more flexible management tools and customized market-making strategies. These innovations not only reduce management costs but also significantly improve capital efficiency. Meanwhile, the platform supports advanced features such as flash loans and Time-Weighted Average Price (TWAP), providing professional users with more trading options.

For ordinary users, THENA offers a trading experience comparable to centralized exchanges, including professional features like limit orders and best-price orders. The upcoming cross-chain bridge, fiat on-ramp, and wallet abstraction functionalities will enhance user experience. Through a comprehensive product matrix—encompassing spot trading, perpetual contracts, and trading competitions—THENA meets users’ diverse trading needs.

Practical Applications of THENA

One practical use case of THENA is ALPHA, an innovative decentralized perpetual contract exchange (DEX) developed by SYMMIO and hosted on THENA. ALPHA enables users to trade with up to 60x leverage across more than 150 cryptocurrency assets.


Official diagram (Source: THENA documentation)

Its core adopts an Intent-Based model, seamlessly connecting on-chain DeFi users with third-party entities called “hedgers.” These hedgers provide liquidity in a trustless manner, responding to users’ trading intents. Inspired by the Request-for-Quote (RFQ) model, hedgers automatically fulfill DeFi users’ perpetual trading needs, creating a permissionless on-chain derivatives market. ALPHA’s infrastructure also introduces the first Automated Market Maker with Frequent Quotes (AMFQ) engine, which cleverly combines the advantages of order books and AMM.

Through a symmetric on-chain protocol, ALPHA ensures that the counterparty risk of each trading position is isolated and fully collateralized with assets locked in the cross-margin accounts of both parties. This design enables the system to operate in a completely trustless manner. In this bilateral protocol, one party’s gain corresponds directly to the other’s loss, effectively ensuring the security of funds and fairness in trading.

Compared to traditional models, ALPHA’s design significantly reduces system inefficiencies and eliminates excessive reliance on oracles, providing a more efficient and stable trading environment.

Another use case is THENA’s Liquidity Open Market, which leverages the veTHE voting system to enable protocols to personalize liquidity management by incentivizing deposits through voting. This mechanism allows protocols to guide, expand, and maintain appropriate liquidity levels according to their needs, directing liquidity to the most productive pools. Protocols can solve the cold-start problem for liquidity by depositing vote incentives and manage pools flexibly with weekly adjustments, ensuring the market remains active and efficient.

THENA’s ve(3,3) tokenomics structure supports a self-optimizing liquidity allocation mechanism. Based on trading volume and fee generation, liquidity is automatically directed to the most valuable pools, maximizing system revenue and optimizing user experience. Additionally, users must participate in weekly voting to claim their vote rewards and trading fees.

Vote incentive claims follow a cyclical structure, with each epoch lasting one week (Thursday to the following Thursday). Any whitelisted tokens can be used as incentive deposits, but they must be deposited before the weekly epoch transition (Wednesday to Thursday 00:00 UTC).

Technical Details of THENA

To further enhance trading efficiency and price execution, THENA’s swap engine integrates the ORBS Liquidity Hub, an optimization layer built atop AMM. ORBS leverages external liquidity sources (such as on-chain solvers and decentralized orders) to improve price execution and reduce the impact of price volatility on users. If the ORBS Liquidity Hub cannot offer a better price, the trade falls back to the AMM contract, ensuring transaction stability and reliability.


Official diagram (Source: THENA documentation)

THENA’s user interface abstracts the complexity of the liquidity hub, providing a seamless and intuitive trading experience. Through on-chain solver auctions and API access to decentralized orders, institutions and professional traders can submit bids and compete to complete swap transactions. This flexible design not only improves trading efficiency but also enhances the liquidity and accessibility of DeFi trading, further optimizing the ecosystem’s overall trading experience.

Another technical detail is the hybrid model developed by THENA—SYMMIO—which balances the advantages of centralized and decentralized systems. SYMMIO acts as a marketplace, facilitating third-party (hedger) order execution. Hedgers can operate across multiple exchanges (e.g., Binance, Bybit, KuCoin, Bitfinex) and even engage in market-making or structured products. Anyone interested can join via Discord or contact the SYMMIO team directly. SYMMIO’s design operates independently of external actions, with on-chain counterparty risks covered by on-chain capital, ensuring a trustless environment.

A common hedging strategy involves filling intents and opening opposite positions on centralized exchanges (CEXs), using delta-neutral strategies to replicate risk-free operations while reducing collateral requirements. SYMMIO’s system is isolated from off-chain activities; even if hedgers operate off-chain or hedge using centralized exchanges, on-chain events remain unaffected. SYMMIO does not rely on hedgers to execute hedges, as on-chain contracts are independent of external behaviors.


SYMMIO’s role in trading (Source: THENA documentation)

Advantages and Disadvantages of THENA

Advantages

  1. Diverse Products and Services

    • Offers spot trading, perpetual contract trading, trading competitions, etc., catering to various needs of users and institutions.
    • Modular liquidity layer supports multiple asset classes (stablecoins, LSTs, tokenized RWAs, memecoins) with high flexibility.
  2. Customized Liquidity Management

    • Implements the ve(3,3) tokenomics model and a weekly incentive deposit mechanism, enabling customized liquidity pools based on partner needs.
    • Automated Liquidity Managers (ALM) and various AMM models (vAMM, sAMM) optimize pool management and enhance market efficiency.
  3. Security and Decentralization

    • Ensures transaction security through decentralized exchanges (DEX) and on-chain liquidity, avoiding risks associated with centralized platforms.
    • Provides leveraged trading (e.g., ALPHA perpetual contracts) to enhance trading functionality.
  4. Low Slippage Trading Experience

    • Utilizes a swap engine and ODOS routing technology to achieve low-slippage trading, ensuring users complete transactions at optimal prices.

Disadvantages

  1. High User Threshold

    • The platform’s complex features may require significant time for new users to familiarize themselves with ve(3,3), AMM models, ALM, and other advanced functions, posing a challenge for those with limited DeFi experience.
  2. Intense Market Competition

    • Faces strong competition from established DEX platforms like Uniswap and SushiSwap, requiring continuous innovation and optimization to maintain market share.
  3. Liquidity Dependence

    • The platform’s core advantages rely heavily on liquidity providers (LPs); a reduction in liquidity could lead to decreased trading efficiency and stability.
  4. Leverage Trading Risks

    • High-leverage trading (e.g., ALPHA perpetual contracts) is sensitive to market volatility, exposing users to higher liquidation risks during extreme price fluctuations, which may impact platform stability and user trust.

Funding and Roadmap


THENA Roadmap (Source: THENA documentation)

In December 2023, THENA secured a strategic investment of $600,000 from Orbs, providing the necessary capital and marking the beginning of a new chapter. This investment supports THENA’s innovations and reflects the shared commitment between Orbs and THENA to decentralized development. Earlier in June of the same year, THENA had already integrated Orbs’ dLIMIT and dTWAP features, enhancing trading capabilities and enabling users to execute limit orders and algorithmic trading strategies.

In September, THENA also received strategic funding from BNB Chain to support the development of its SocialFi platform, THENA ARENA. This grant demonstrates THENA’s commitment to becoming a business development hub and liquidity layer within the BNB Chain ecosystem, driving innovation and growth in DeFi.

Tokenomics

THENA has launched three tokens: $THE, veTHE, and theNFT.


THENA Tokenomics (Source: THENA documentation)

$THE — The BEP-20 utility token of the protocol. The emission reduction of $THE has two main goals: achieving and maintaining sufficient liquidity to ensure optimal trading conditions, and encouraging decentralized governance. $THE can be used to participate in governance, driving the platform’s continuous development and ultimately achieving true decentralization.

veTHE — An ERC-721 governance token in NFT form. veTHE is the vote-escrowed version of $THE, allowing users to lock $THE tokens for up to two years to obtain veTHE. The longer the lock-up period, the greater the voting power. veTHE positions can be increased, split, and resold on secondary markets. veTHE holders receive a share of the platform’s revenue, including 90% of total transaction fees and 10% of the protocol’s deposited vote incentives.

theNFT — An ERC-721 founder token issued in NFT form. theNFT is a non-dilutive NFT collection that can be staked for revenue sharing. The staking pool receives 10% of THENA’s total transaction fees, along with royalties from secondary sales.

19% of veTHE’s initial supply is allocated to airdrop protocols, with TVL, trading volume, and product features considered in the evaluation to balance native BNB protocols and those from other chains. The list of protocols receiving airdrops will be updated once finalized. 25% of the initial supply is distributed to regular users of existing BNB Chain protocols and new users onboarded through THENA, rewarding behaviors that promote long-term stability, such as locking, stacking, holding, and governance participation. 9% is allocated to theNFT minters, claimable upon THENA’s launch, with 40% of the airdrop balance locked as veTHE (2-year lock) and 60% as $THE.

25% of the initial supply is allocated to a growth fund to accelerate THENA’s development, supporting shortlisted projects including smart contract development, marketing, and business expansion. 18% is allocated to the team to ensure long-term participation, balanced between veTHE and $THE, with 60% as veTHE (locked for 2 years) and 40% as $THE (2-year vesting period, 1-year cliff). 4% of the initial supply is reserved to ensure sufficient liquidity, paired with $BUSD and/or $BNB.

veTHE holders, liquidity providers (LPs), users, and protocols will dynamically determine the emissions of $THE through the ve(3,3) model. veTHE holders and LPs earn rewards through voting and liquidity incentives, traders benefit from low slippage, and protocols can promote liquidity by offering incentives.

Conclusion

As a decentralized ecosystem centered on DeFi, THENA combines the advantages of liquidity, governance, and market mechanisms. Through optimized liquidity management, decentralized governance, and cross-chain functionality, THENA provides users with a low-cost, high-efficiency trading experience while promoting the growth of the DeFi ecosystem.

However, despite its significant advantages in decentralization, liquidity allocation, and governance, its complex tokenomics and incentive mechanisms may present challenges for some users in understanding and participating.

With ongoing technical and functional optimizations, THENA has the potential to secure a significant position in the DeFi space, driving the advancement of decentralized finance.

Author: Oxaya
Translator: Piper
Reviewer(s): SimonLiu、Edward、Elisa
Translation Reviewer(s): Ashely、Joyce
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
* This article may not be reproduced, transmitted or copied without referencing Gate.io. Contravention is an infringement of Copyright Act and may be subject to legal action.
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