Thorus New Platform — How it will work
We have compiled the information breaking down all aspects of the new Thorus platform in a singular article for ease of accessibility.
NOTE: For further detail, you can read our documentation!
A token holder first approach
The Thorus model will have a token holder first approach. All protocol functions are designed to reinforce this mentality. Each feature is part of an ecosystem that continually drives value back to $THO, benefiting holders and stakers above all.
Initially, the new Thorus protocol will consist of the following products:
- AMM DEX
- Revamped Farms
- Balanced Emission Allocation Schedule
- Revamped Stable Coin (STATIK)
- Unique Platform Token (THO)
- Innovative Launchpad
- Governance Rights
- Pool Section
Automated Market Maker
The AMM DEX will use Uniswap v2 fork. The swap fee will be 0.1% and the main revenue stream of Thorus treasury.
The protocol will deposit 90% of this fee into the Treasury to reinforce TVL, and 10% will be distributed towards LPs. 20% out of the 90% will be diverted into the STATIK (stable coin) Reserve Fund to help ensure stability and quick peg times.
Some of the funds in the Treasury will be used to generate outside yields at some point, which will further increase the buyback capacity of THO, which will help raise the backing price. Furthermore, the larger the Treasury grows, the more stable it becomes over the long-term as it becomes more diversified in its holdings.
All platform utilities will feed funds to the Treasury, ensuring growth and lasting value for our holders. As such, the Treasury will be the center of this new protocol and the investor first model.
The Treasury can automatically create and support a backing price for the THO token through buybacks of the THO token at a predetermined backing price, using funds from the bonding mechanic. This, in return, will contribute to the stability of STATIK, our stable coin, and ensure both tokens maintain their value over the long term. Furthermore, through this Protocol Owned Liquidity model (POL), the larger the Treasury becomes, the higher the backing price and value for the THO token, creating price security for participants.
Having a token holder first approach, an important percentage of newly generated THO will be allocated towards our auto-compounding single asset staking section.
Auto-compounding refers to your staking rewards being automatically re-added to your stake in order to generate and earn a higher APY (Annual Percentage Yield).
The Staking section of the Thorus dApp, as the rest of the core features of the protocol, constantly works towards building protocol owned liquidity, hence increasing the Treasury and with it, the backing price of THO. In the case of Staking, Treasury collects fees as follows:
- 4% Performance fee, which applies only to pending rewards (not deposit) and it’s collected every time the Harvest function is called.
Auto-compounding for ALL stakers is triggered each time someone manually calls the Harvest function. A bounty will be paid out to the individual that triggers this function. 0.05% of all pending rewards will be allocated to this bounty. This percentage applies to pending rewards available since the last time the Harvest function was called.
There is no deposit fee for Staking!
Farms (30% of emissions)
The structure under which farms perform enforces the investor first model. As a result, 30% of all emissions will be directed towards the farm section.
95% of these emissions will reward long-term holders auto-compounding our native platform utility token and stable coin. As such, APRs will be significantly higher than old farming models — without threatening over inflation.
The remaining 5% will reward non-platform-based pairs such as ETH/BUSD, among others. This particularity will lead to minimal holder dilution in the short term and allow for continued expansion over the long term.
Bonding (35% of emissions)
Bond utilization is one of the core features we are very excited about as it dramatically benefits platform investors. Here, users can sell multiple assets to the platform and, in return, receive dynamically discounted platform tokens throughout a 7-day vesting period.
35% of all emissions will be diverted to the bonding portion of the platform. The tokens from this emission allocation will be locked until the subsequent bonds are purchased — rather than minted during the purchase cycle. As such, inflation is mitigated until there is the appropriate TVL to utilize the introduction of the locked tokens.
Given the finite distribution for this section, this will promote significant and rapid TVL growth, which subsequently allows for stable long-term developments. In addition, this POL model (Protocol Owned Liquidity) will help create a backing price for the platform-specific token that will add additional stability mechanisms to our stable coin and help mitigate wild price swings. This bonding process will also increase volume through our swap, which will incur the 0.1% fee, thus generating additional revenue for the platform, further backing THO and Treasury.
Reserve Fund (25% of emissions)
25% of emissions will be allocated to what we call the Reserve Fund. This Reserve will act as a kind of bank for THO that will allow us to expand cross-chain quickly. This allocation would be what provides the initial attractive APRs on new chains.
STATIK (10% of emissions)
The remaining 10% of emissions will be allocated to the STATIK stable coin. They stay locked unless they are needed to keep the peg. If STATIK succeeds to overcome inflation without troubles and become more than 100% collateralized, these THO might be used for future cross-chain expansion.
Emissions / Rewards
We are going to cover the emission rate for our platform token (THO) and the introduction of the platform stable coin (STATIK) in more detail. Emissions will be distributed primarily to token holders to ensure minimal long-term dilution of their staked assets. Therefore, the set maximum supply of 200m will be reached in 4 years and follow the schedule provided below:
$THO — Platform Token
The platform itself will have three primary phases.
1️⃣ Phase 1 — The Inflationary Phase
The first four years will constitute the inflationary phase. At this time, APRs will be established using emissions with the primary objective of strengthening the Treasury, rewarding token holders, and increasing liquidity so that the AMM DEX functions efficiently and earns additional yields through swap fees. Accordingly, emissions will be allocated using the following weights:
- 30% will be allocated to Farms, with 95% rewarding platform-specific pairs and single staking. The remaining 5% will be used to establish additional non-platform-based pairs such as ETH/BUSD, among others. This particularity will lead to minimal holder dilution in the short term and allow for continued expansion over the long term.
- 35% will be allocated to the Bond portion of the platform. These tokens will be locked until the subsequent bonds are purchased — rather than minted during the purchase cycle. As such, inflation is mitigated until there is the appropriate TVL to utilize the introduction of the locked tokens.
- 25% will be allocated to the Reserve Fund, which will act as a type of bank for THO and allow us to expand cross-chain quickly. This allocation would be what provides the initial attractive APRs on new chains.
- 10% will be allocated to the STATIK stable coin. They stay locked unless they are needed to keep the peg. If STATIK succeeds to overcome inflation without troubles and become more than 100% collateralized, these THO might be used for future cross-chain expansion.
2️⃣ Phase 2 — The Consolidation Phase
The consolidation phase will begin after emissions have ended. At this point, the Treasury will be fully self-sustaining through various outside investment strategies such as stable lending pairs. In addition, the Treasury would be continually reinforced through trading fees collected on the platform. This combination will allow for a gradual and continued increase of the backing price of THO through buybacks at a specific and trailing variable price. For means of context, if the Treasury achieves a 1B TVL the estimated yearly profit generation sits at roughly 200m. As a result of the completed emissions, these yields will have a direct and increasing effect on the backing price.
3️⃣ Phase 3 — The Deflationary Stage
With emissions having been completed and a robust Treasury investment model in place that continually buys back THO, the price of THO will constantly rise as more of the supply is removed from circulation. In effect, token holders become a type of shareholder of the whole ecosystem and will receive continual earnings from these yields.
$STATIK — Stable Coin
STATIK is the platform-specific commerce-backed stable coin backed by 80% USDC and 20% THO. Using multi-relational stability mechanisms, we can dynamically control emission allocations to maintain a $1 peg over times of heightened realized volatility. To break this down, we have looked at a 1.3 standard deviation move in the market and the effects that it would have on traditional derivative products as it closely mirrors the 20% risk STATIK carries.
Moves within the traditional market have a roughly 80.6% chance of staying within the 1.3 range. However, the same cannot be said for crypto, where many orders of magnitude greater moves are not uncommon. However, the more critical piece missing in crypto is controlling risk beyond just position sizing. For example, you have various Greeks in traditional investing that can help you manage a position and its inherent risk to the trade itself and your overall portfolio. As such, we’ve examined various avenues of replicating specific derivative-based tools to help stabilize the price of STATIK.
Three such instruments are Theta decay, DvegaDtheta (Veta), and the overall correlation to the Treasury as a whole (Beta). In short — time, realized volatility, and correlation all play a role in the price action of STATIK — in retrospect to platform-based inflation.
To utilize all of these metrics, the following equation was derived:
These metrics are far too complex a topic to cover in a few sentences. Therefore, you can read a full explanation in our Document Section.
But in short, at the start, 10% of all emissions will be used to bolster a Reserve Fund that will divert THO into the STATIK during times of depeg. This amount is fixed, to begin with, to generate a larger balance. However, once a period of time has passed, the rates will be dynamically adjusted to consider mint rates, realized volatility, inflation, and price to peg ratios utilizing the above formula. This allows for optimal usage of emissions that will substantially decrease peg times and allow for adjustable rates that can shift elsewhere on the platform to boost APRs.
Moreover, 20% out of the 90% of the swap fees that are going in the Treasury will be directed to fund the Reserve — further decreasing the time to becoming over-collateralized.
While previous launchpad dynamics had some success, we believe we can do significantly better. Therefore, Launchpad fundamentals will be particularly innovative.
Firstly, a dynamic strategy will be based on the project itself instead of setting minimum and maximum allocation limits. For example, some systems consist of multi-day auctions with an increasing bid structure per token. This format would constitute a traditional auction setting. There would also be a decreasing bid structure, known as a Dutch Auction, where the price per token ticks downwards until all units are purchased. Launchpads could also use the previous design with set maximum allocations in specific circumstances.
However, there is no minimum value needed; all THO holders could participate in a raise. Alternatively, we could customize additional setups per project based on their set requirements and objectives. Since the inherent Launchpad structure will be dynamic — a summary article will be published in advance explaining how a particular funding round would unfold.
Secondly, instead of locking THO tokens in a 30-day pool — participants would use THO itself to purchase their block of Launchpad project tokens — which would be calculated based on one of the strategies explained above. That allocation would then get added as part of the initial liquidity of the Launchpad project itself. This would benefit not only THO holders by receiving additional units on a well-performing project. However, just as importantly, it will benefit the project by providing more liquidity at the start, which would help prevent catastrophic price moves when people begin to take profit. This setup prioritizes growth and stability for every project launched through Thorus rather than pump and dumps, which have been witnessed with prior methods.
Similarly, our stable coin STATIK may also be included during this transaction based on the needs and objectives of the Launchpad project. However, regardless of the scenario, this methodology is set up to help ensure success for all participants.
10% of the initial liquidity raised would be deposited as a launchpad fee into our Treasury and locked for one year. This inherently sets an absolute minimum value for the project, a worst-case scenario reserve, and strengthens the Treasury should the project perform well. After the one year has been completed, the funds will be unlocked. The tokens could then be sold, and the funds reinvested elsewhere. Alternatively, the 10% of initial liquidity could be kept, allowing potential further growth from the project to be reflected in the Treasury balance. This further diversification will provide greater stability overall to the platform and contribute to the continually rising backing price of THO.
Lending will also be coming to Thorus after launching. It will utilize the Treasury in part, thus generating additional yields which will reinforce the ecosystem. We will also add platform lending-specific features to give additional utility to THO. These could include dynamic buy-down rates and multi-collateral options, prioritizing a trailing implied volatility (IV) level when calculating rates to ensure the best rate received. To maintain a competitive edge, we will release more details closer to implementation.
We will also offer community governance for Thorus. Proposals will be accepted and sorted through specific discord channels by the Governance Committee. Additional members will be sourced from the most active and well-performing members of the coming Thorus channels. Important proposals from the team will also face a governance vote when the time arises. This is in an attempt to further move towards a Decentralized Autonomous Organization (DAO) structure.
Rather than having a single stake option, where one could stake a native token and receive a partner token for a set reward period — the Thorus platform will prioritize Treasury growth and unified rewards for THO holders. In this method, partner tokens will be deposited into the Treasury, where they will be vested over the period of 3 months. This will raise the backing price of THO proportionally to the value of the deposited assets. In this capacity, the reward becomes the increased backing price rather than the token itself.
Furthermore, a STATIK/Partner or a THO/Partner farm will be established, and a portion of THO emissions will be directed to the farm for 2-4 weeks for those who wish to take a more active approach. The one caveat is that emissions would only be allocated to ecosystem-based pairs to ensure minimal dilution to holders. In addition, we could potentially create a new bond for the partner token for promising partner projects. However, the requirements will be strict to ensure stability and growth for all holders.
The development and marketing fund allocation is 12% of the total rewards. These funds will continue to be used to pay for team member salaries, admins, designers, audits, bug bounties, and more. After financially planing out 2022 — this is the minimum amount calculated to accomplish platform goals.
We are tentatively aiming for a January 5 launch — more on that below. As decided by the community vote — Thorus will be launching on AVAX. You can access the network through MetaMask by following one of the options below on adding the Avalanche RPC to your wallet.
2️⃣ An alternative would be to connect your wallet to https://chainlist.org/, to the corresponding network (Avalanche Mainnet) and allow it to add the network to your Metamask app automatically.
Our platform, upon launch, will also have the option to automatically add the Avalanche Network to your Metamask wallet app.
However, we would like to note that the quick turnaround time will not come at the expense of security. We need to wait for fewer audits to be returned before launching.
Furthermore, there have been some fears regarding whether Thorus will be launching at the beginning of a Bear market. While it is impossible to predict future market moves, we do acknowledge the heightened volatility the broader market has been experiencing. However, Thorus is well equipped to handle any prolonged bouts of negative market sentiments. Through the merit of owning the liquidity pool (POL), we’re effectively locking in a minimum price for THO.
That being said, we hear your concerns and have decided to push the launch to January 5, 2022. This will help us navigate the more significant volatility spikes while setting us up for launching on the expected upswing of the overall markets. Beyond navigating volatility, we will also sidestep the holidays to ensure we do not launch during a period of low volume, which would exacerbate our price swings. We effectively bypassed our relaunch’s two most significant risks by pushing the launch back two weeks.
In the meantime, WMT is not tradable; therefore, it is insulated from the broader market moves. This, in turn, helps preserve the initial capital as outlined below in the liquidity section.
Beyond being more robust against market downturns, Thorus will be more stable on the chain side as well. As mentioned, we’re initially launching on AVAX. However, once we begin our expansion cross-chain, we will dynamically shift the Treasury to chains that offer specific return incentives. This will increase the rate of return and allow Thorus to navigate potential chain-specific slowdowns.
Furthermore, we can dynamically adapt our emission rates to the best-performing chain to garner additional TVL for our Treasury. For example, if AVAX were to slow and whatever chain we bridge to increase, we can divert more than the 20% allocation reserved for cross-chain expansion. As such, we can maintain a competitive edge wherever best suits the platform overall.
We have collected $104,100 to date, which will back the initial liquidity pool. An additional four weeks’ collection will also contribute to initial liquidity. As such, we are expecting between a $1-$1.30 list price. While this is an 30% spread, we will close the gap closer to launch as we analyze the volume of funds we will have collected over the month, at which point a final price will be derived shortly before launch. After launch, we will add additional liquidity to the Thorus new platform. However, the timeline will be announced later.
The initial liquidity pair will consist of the following:
It is important to note that it would be advised not to purchase a large quantity at once due to the minimal relative initial liquidity. Instead, wait for the liquidity to grow and spread the would-be price impact across a less statistically moving time frame. The Bond portion will consist of wBTC/Statik, ETH/Statik, MIM/Statik, and others at launch. We will release a complete list of liquidity pairs closer to our release date.
Anyone who holds WMT in their wallet will be airdropped THO once the project launches at a rate of 1:1. There is no further action to be taken by investors; they only need to wait for the launch. You can follow the Discord channel HERE to keep updated with further timeframes or released details.
Finally, you will need roughly $5 worth of AVAX to process your initial transactions. You can do that by either bridging through the official Avalanche Bridge or by purchasing a small amount of AVAX through a CEX like KuCoin and sending it to your wallet. Either way, once you have a small amount of AVAX, you’ll be able to become self-sufficient with managing your THO.
Thorus is an all in one cross-chain DeFi Platform with an adaptable treasury system, and a token holder first approach. All protocol functions are designed to reinforce this mentality. Each feature is part of an ecosystem that continually drives value back to the THO token, benefiting holders and stakers above all.
The project also aims to be amongst the first AMM’s with Protocol Owned Liquidity (POL).
If you have any questions or thoughts, please join us on our social networks!