THENA and ICHI Join Forces: Trailblazing Onchain Market Making on BNB Chain

THENA unveils a new collaboration with ICHI, a trustless market-making protocol that enables the use of sophisticated algorithmic strategies on concentrated liquidity pools. Using these onchain market-making vaults on THENA aim at reducing $THE price volatility, thereby bringing more resilience to THE DEX.

This product will be initially available for five $THE pairs, with single-token deposits of BTC, ETH, BNB, USDT, and USDC — now live on BNB Smart Chain and soon opBNB.

Key partners of THENA will also have the opportunity to utilize these vaults for their own tokens shortly after the launch.

Unveiling ICHI Yield IQ Vaults

With its fully automated Yield IQ Vaults, ICHI allows for token holders to earn from single-token liquidity provision. Yield IQ’s process is simple and efficient. Users deposit their preferred tokens, and Yield IQ allocates these tokens into concentrated liquidity AMMs, without initiating any swaps. In return, users receive LP tokens representing their share in the liquidity pool.

The true magic unfolds as Yield IQ, powered by Chainlink Automation, dynamically adjusts the concentrated liquidity position based on token arrangements and real-time market conditions such as volatility and volume. Users earn trading fees when swaps occur, supplementing potential token appreciation. With vigilant oversight of token composition, Yield IQ guards against harmful arbitrage and market shifts. Users can withdraw their initial deposit and earnings at any time by exchanging LP tokens for their share of assets in the vault.

The key features and benefits of ICHI Yield IQ vaults include:

• Single-Token Liquidity Deposits
• Automated Management: Liquidity Composition and Range Selection
• Passive Income Generation
• Real-Time Adjustments based on Market Conditions
• Flexibility: No locking period, no deposit or withdrawal fees

Introducing Single Token Vaults for $THE

Market-making is a crucial element in DeFi, providing liquidity and stability is key in the often turbulent seas of crypto markets. ICHI Vaults are reshaping the crypto landscape with an innovative approach to managing liquidity. These vaults welcome single-token deposits of blue-chip assets, pairing these deposits with $THE to strengthen its liquidity and placing limit order at key price levels to acquire/sell $THE tokens to execute market making strategies.

Essentially, each vault holds a blue-chip asset. If the price of $THE experiences a downward movement, this asset is sold to acquire $THE, reducing implied volatility. Conversely, when $THE’s price moves upward, $THE tokens are sold to acquire more of the other blue-chip asset, thereby creating a liquidity wall.

By reducing price volatility, ICHI IQ Vaults enhance resiliency and price stability. In THENA’s ecosystem, price stability for the utility token is crucial to:

• Attract and retain Liquidity Providers
• Enable the best swap price conditions to end users
• Optimize the revenue generation for veTHE holders
• Protect $THE token holders

On the other hand, the vaults offer a unique yield generation opportunity for investors. The strategy focuses on fee generation through liquidity provision of the high-volume blue-chip asset paired with $THE, while maintaining the share of the asset in the pool between [65% — 95%] to preserve the depositor exposure to the potential upside of the asset provided.

Our target is to reach a level of 40% $THE market cap managed by Yield IQ strategies, contributing to achieve a more stable and prosperous ecosystem.

$THE IQ Vault Specifications:

• Blue-chip deposited: BTC, BNB, ETH, USDC, USDT
• Blue-chip dominance in the pair: [65% — 95%]
• Yield pay-off: Trading fees (mix of $THE and the blue-chip)
• Initial Liquidity Bootstrapped with $THE additional rewards
• Target of $THE total liquidity being managed by IQ Vaults: 40%

Keep in mind that while the solution is audited and tested, there can be impermanent loss typical to liquidity providing. This is however mitigated by ICHI.

Fast Forward

ICHI is the third ALM (automated liquidity manager) to enter THENA, with a unique product that adds real value. And yes, the vaults will soon become accessible to our partners who want to strengthen their tokens’ performance.

We look forward to a fruitful partnership together.

Learn More

Learn more about ICHI by visiting their Website, Medium, Twitter or Telegram.

AND join THE community.