Theos.fi
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Theos.fi

THEOS Token Utility

The moment for deep exploration of the THEOS token has finally arrived. Previously, we introduced the THEOS platform, giving an overview of our protocols’ characteristics; including liquidity for NFTs, efficient price discovery, our minting platform, auctions, an explanation of our underlying blockchain of choice, and more. If you haven’t already, you can read our precursory article .

Notwithstanding, as the launch of our platform draws nearer with every passing day, we think it is time to showcase the true utility of the THEOS token and highlight the importance it will have for all actors in our ecosystem.

The Heart of THEOS

The THEOS token sits at the core of our protocol, shaping agent interactions, enabling a multitude of use cases, and empowering feature access. It will also result in several yield generating strategies.

We will continuously develop upon the original functionalities for the THEOS token, always exploring new ways to add value to our token holders as they become available. Throughout this article, we hope to accurately display how we believe our current proposed token mechanics will provide deep value to THEOS holders. Let’s describe these mechanisms below.

  1. ODYSSEY (NFTIZE) Pool Origination

ODYSSEY Pool Originators (POs) will play a big role within the THEOS platform. ODYSSEY pools will allow the pooling of NFTs and the issuance of fungible tokens, thereby granting the liquidity solution for NFTs. The process of creating an ODYSSEY pool will involve a single transaction that simultaneously:

i) Creates the ODYSSEY pool,

ii) Creates a liquidity pool for the pool tokens in a decentralized exchange, and

iii) Adds liquidity to the second pool. The liquidity tokens will be initially staked and locked inside a THEOS contract for a period of time to ensure liquidity stability for trading purposes.

ODYSSEY pool originators, as described in our whitepaper, will have the possibility to determine the amount of external NFTs that other community members can deposit in the pool, as well as some other pool characteristics — such as average original NFT price and a social cause of their choosing.

For example, Matt Sorum wishes to support scientific research through our partners at Global Pandemic Shield, a global scientific funding project. In theory, he could create an ODYSSEY pool and allocate 10 NFT slots to this pool. Community creators could then submit their NFTs and, if accepted, would enjoy instant liquidity and even a percentage of pool fees in case they decide to become liquidity providers — while simultaneously supporting scientific research and development.

2. Liquidity Mining

Liquidity mining has become one of the building blocks of the new decentralized financial ecosystem. The necessity to reduce inefficiencies and intermediaries through blockchain technology results in eliminating actors like market makers; i.e those participants who provide liquidity for both sides of a trade in centralized finance. The best alternative involved designing a mechanism that could incentivize decentralized actors to provide liquidity. Enter liquidity mining.

We have assigned a total of 2,450,000,000 THEOS (roughly 24.5% of our total THEOS supply) for token liquidity and liquidity mining incentives. THEOS holders will be able to participate and enjoy liquidity mining rewards through our various pools. Liquidity provision rewards will be initially available for any agent, irrespective of whether they have staked THEOS tokens or not, assuming no indirect dependencies:

  • Providing liquidity to ODYSSEY pools makes one eligible for liquidity mining rewards;
  • By Phase II, participants will be able to create DELPHI (personal liquidity mining) pools. DELPHI pools will enable attaching an arbitrary pool of ERC-20 tokens to an NFT, and thereafter store, stake, transfer or sell them. The genesis use cases will be community voting and rewarding community chosen Top Creators.
  • Only Verified bidders (THEOS stakers) participating in Verified auctions are entitled to auction liquidity mining rewards. Liquidity mining rewards are distributed on a pro-rata basis and split 50/50 between auction originators and bidders for every lot.

3. Acquiring ‘Verified status’

Acquiring and staking THEOS tokens — along with other compliance and vouching conditions — is a requirement to achieve the ‘Verified status’ within THEOS. This is a type of account that enables liquidity mining for minting NFTs, auctioning of NFTs and other protocol interactions. Verified accounts will also be eligible for community voting on protocol decisions.

4. High-profile Auctions

In Phase II, we also expect to launch Auctions. Auctions will present a proven way for specific high-value NFTs to obtain special price discovery mechanics. Only those Tier IV stake Verified Users will be able to both create and access verified high profile auctions. This process helps in diminishing THEOS outstanding supply, while simultaneously incentivizing good behavior from specific individuals.

5. Governance

Only THEOS stakers will be allowed to participate in the governance layer; the place where all project voting happens. Several system parameters will be subject to community voting; from top creators to accounts receiving the ‘Cause’ pools status. THEOS will employ a one-coin-one-vote mechanism with stakes capped at Tier V.

6. Ecosystem Value Distribution

Several yield generation strategies can be leveraged within THEOS, from non-staking liquidity providers to Verified Top Creators. Besides the liquidity mining rewards mentioned above, we have also defined diverse mechanics to distribute value throughout our ecosystem’s participants. Take stakers for example; while staking provides a higher level of accessibility to platform features, functionalities, and governance; stakers also enjoy distribution from ODYSSEY pools and cast-out mechanisms as follows:

  • A small percentage of the inbound/outbound price of the ODYSSEY tokens is allocated to reward THEOS stakers. In other words, actions of adding and removing liquidity to and from the ODYSSEY pool are not free and the fees generated are rewarded to THEOS stakers.
  • Unstaking will result in a cast-out fee that will be redistributed among the remaining stakers on a pro-rata basis. The exact fee will be subject to community voting.

Further Utility Proposals

At a later stage, we will present the community with further token proposals and open them for debate. Fee-reduction mechanisms that depend on the size of the stake, can allow participants to enjoy a reduction in ODYSSEY pool fees and even reduction/removal of other platform fees.

Initially ERC-20, then Cardano, then blockchain agnostic

The blockchain upon which the THEOS token will be issued must align with our philosophy, and at the moment, we believe Cardano is the solution that most closely resembles our ideology. However, we will always place ideology over technology, and we will keep an eye out for new or improved technologies that can keep up with what THEOS aims to accomplish.

Nonetheless, even before THEOS can be utilized in a developed smart contract environment on Cardano, it will be launched as an ERC-20 token, and ultimately bridged after the Alonso hard-fork.

Concluding Remarks

All in all, THEOS aims to guide the next generation of DeFi protocols, seamlessly integrating non-fungible assets into a liquidity-centric ecosystem. We will be developing along with the commandments that guide us soon, but we can introduce them and group them in the next few:

  • Inclusivity above all: Anyone can become a creator. From the DeFi expert designing the next revolutionary financial vehicle to third-world country residents aiming to generate a sovereign ID and place it on the blockchain, we want to cater from the simplest to the most complex demands, for everyone.
  • DeFi integration. Partly related to the previous point on inclusivity, we want to promote financial inclusion across the globe, without neglecting the need for seamless usability of complex financial vehicles.
  • Environmentally friendly and socially oriented. Carrying out every principle we have developed -and will continue to develop- would be of little meaning to THEOS if it’s not done in a socially responsible and environmentally friendly framework. We aim for our innovations to help causes and people while taking care of the footprint we leave behind in doing so.

Stay tuned, as we will be soon developing upon other THEOS features and functionalities designed to bring our vision to fruition.

And don’t miss out on our news channels, for every major development will be announced there, especially the upcoming IDO!

Follow our social media channels to stay up to date with the latest news:

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