Optimizing Fund Pool Proportions: How Themis Pro Achieves Target Weight of 20%

Decentralized finance (DeFi) has emerged as a disruptive force in the financial world, and Themis Pro stands at the forefront, revolutionizing spot and derivative trading on the Filecoin Virtual Machine (FVM). Among its innovative features, the Themis Treasury Pool Funding mechanism plays a crucial role in maintaining liquidity and stability within the fund pool.

The Themis Pro protocol is designed to ensure that the total value of FIL tokens in the fund pool aligns with the protocol's target weight of 20%. This target weight is a key parameter that influences the balance of assets within the fund pool, enhancing the platform's resilience and effectiveness.

The Dynamics of Fund Pool Replenishment

When the total value of FIL tokens in the fund pool falls below the 20% target weight, it signals that the pool needs to be replenished with FIL. The Themis Pro protocol reacts dynamically to this situation by reducing the price of FIL minting $THS (with a higher discount relative to the $THS trading price). This strategic move creates arbitrage opportunities for users who use FIL to mint $THS, incentivizing them to increase the proportion of FIL in the fund pool. As more users participate, the FIL holdings gradually move closer to the 20% target weight.

Conversely, when the total value of FIL tokens in the fund pool exceeds the 20% target weight, the protocol takes a different approach. It automatically increases the price of FIL minting $THS (with lower or no discount, or even negative discount) relative to the $THS trading price. By doing so, the arbitrage space for minting $THS with FIL is reduced, causing users to temporarily lose interest in the process. As a result, the protocol effectively prevents FIL from entering the fund pool, maintaining its stability.

Balancing the Pool Proportions

Any user activity, such as buying or selling assets directly impacts the composition of different tokens in the fund pool. To manage these fluctuations and maintain a balanced pool, the Themis Pro protocol sets different prices for minting $THS using different tokens. This dynamic pricing ensures that the proportions of each token remain close to the target weight, enhancing the overall stability of the protocol.

A Pioneering Step Towards a Robust Ecosystem

Themis Pro's commitment to achieving and maintaining the 20% target weight for FIL in its fund pool demonstrates its dedication to building a robust and reliable ecosystem. By incentivizing FIL holders and actively managing pool proportions, Themis Pro ensures liquidity, stability, and ample opportunities for users to participate in the DeFi revolution.

The combination of decentralized spot and derivative trading, asset interoperability, and innovative treasury pool funding makes Themis Pro a pioneering platform that has the potential to reshape the future of finance. As the DeFi landscape continues to evolve, Themis Pro stands tall as a trailblazer in the world of decentralized finance, setting new standards for secure, efficient, and inclusive trading experiences.

Wrapping this up, Themis Pro's innovative Treasury Pool Funding mechanism plays a vital role in achieving the target weight of 20% for FIL tokens in the fund pool. Through dynamic pricing and strategic incentives, the platform ensures liquidity, stability, and a robust ecosystem. With its pioneering approach to decentralized finance, Themis Pro stands as a trailblazer, shaping the future of spot and derivative trading on the Filecoin Virtual Machine.

Click on the following links to know more about us:

Website: https://themis.capital/

Themis Pro dapp: https://dapp.themis.capital

Themis Swap dapp: https://swap.themis.capital/

Twitter: https://twitter.com/Themis_Pro

Telegram(EN) : https://t.me/themis_pro_official

Telegram(C) : https://t.me/themispro_china

Discord: https://discord.gg/PJVgqbE7gY

Gitbook:https://themis-pro.gitbook.io/themis-pro-docs/

Github: https://github.com/ThemisCapital

Audit Report: https://dehacker.io/audit_reports_store/Themis.pdf