Introduction
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:
- 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.
vAMM — traditional Uniswap V2 for volatile assets, which is exceedingly commonplace in the DeFi landscape, as mentioned above.
Revenue Generation and Referral Mechanism
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.
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 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.
- Furthermore, the DeFi ecosystem on the BNB Chain is extensive and relatively well interconnected.
- Thena aims to fix the inefficiencies in the current state of liquidity incentives and suboptimal swap prices on BNB Chain.
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.
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.
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.
Road Map
Thena’s roadmap includes…
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.
However, potential investors should exercise caution due to the anonymous development team and limited information available on the official website.
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