The Motivation of Themis Protocol：To Be The Premier NTF Collateral Liquidity Protocol

Since the release of smart contracts on Ethereum, DApp development has matured, with developers creating a total of 10.7 million smart contracts in 2020, up 55% from 6.9 million in 2019. Superior DeFi protocols such as Uniswap, Compoud, and Yearn were born on Ethereum, and with Layer2 development bringing further improvements in performance and efficiency, the future will see the exploration and innovation of Ethereum in decentralized finance creating a huge derivatives market.

The imagination brought by the innovation of DeFi has made the concept of NFT hot again, and the market has gradually accepted the governance of various types of native assets, and as more NFT native assets are created. Providing governance for native assets such as trading, liquidity, lending, collateral, voting, etc. will be an important development trend.

Themis protocol is a decentralized NFT lending protocol that will provide a collateralized lending scenario for NFTs.

We plan to improve the efficiency of lending by providing centralized lending instead of P2P lending. Thus, we can get a more efficient use of funds, while spreading the risk to different segments such as lending pools, auction, yielding farming, staking, and liquidation, and governing the native crypto assets in the protocol in principle through the three-point balance of yield, security, and liquidity. In the future, we will continue to explore the possibilities of DeFi to provide a more secure and easy-to-use product so that more people can benefit through crypto assets.

Themis Protocol is deployed on Ethereum at its core and will eventually support multiple chains in parallel, and Themis will have business nodes at various points based on the characteristics of the asset flows. This means that the early operational framework of Themis is very important, and the ultimate vision of Themis protocol is to be the “Libra” for measuring the value of native crypto assets.

Themis is designed to follow the following principles:

1. Compatible with all assets on Ethereum: The first practical and widely used smart contract platform is Ether, and each crypto community has its own mature native assets deployed on Ethereum, which provides a good environment for other communities to access. At the same time, compatibility with Ethereum means that we can realize code panning on the same type of public chains such as BSC, or parallelism on multiple public chains through cross-chain bridges, allowing more users to use our products.
2. Simple risk management model: Themis’ risk management logic follows the principle of three-way assessment, assigning risk to the characteristics of asset safety, profitably and liquidity, and governing to resist systemic risk by assigning different risks and returns to different links.
3. Lending based on marketable assets: For collateralized lending, the core is to ensure that the value of collateral is higher than the lending funds. Access to prices and encashment of borrower collateral must therefore come from long-term unobstructed decentralized agreements.
4. Business Expansibility: The basic framework containing collateral lending, liquidate, asset auction, LP-token mining pool, risk reserve pool, and quote collector corresponds to the future business expansion possibilities of full-class collateral lending, issuing NFT, Decentralized Exchange, insurance, Oracle, and Vault.
5. Governance of Native Crypto Assets: Themis must ensure business compliance and therefore provides services only for native crypto assets. The newly generated Tokens are Utility Token or crypto credentials generated by the governance session. These credentials may have value, but do not promise Security Token properties as business dividends, equity, etc.

We will be releasing our product soon, and more details will follow gradually. If you’d like to keep up with news and information, you can follow us on Twitter or Medium or join our Telegram community.