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Selling your assets means closing your position on that particular asset. Hence, if you are long on the asset, you would not be entitled to the potential upside value gain. By borrowing, you are able to obtain liquidity (working capital) without selling your assets. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.
Before borrowing you must hold one of the assets listed in the M1 tab. Go to M1 and click on “Deposit” next to an asset you are holding to deposit your collateral. Then, click on “Borrow” next to the asset you want to borrow and confirm your transaction. Note that assets supplied on the M0 tab can also be used as collateral.
The maximum amount you can borrow depends on the value you have deposited and the available liquidity. For example, you can’t borrow an asset if there is not enough liquidity or if your health factor doesn’t allow you to. You can find every collateral available and its specific parameters for borrowing when you click on “borrow”. Your borrow limit and loan risk are also shown in “M0”.
You repay your loan using the same asset you borrowed. For example, if you borrow 1 ETH you will pay back 1 ETH + interest accrued.
Stable rates act as a fixed rate in the short-term, but can be re-balanced in the long-term in response to changes in market conditions. The variable rate is the rate based on the offer and demand in Themis. The stable rate, as its name indicates, will remain stable and it's the best option to plan how much interest you will have to pay. The variable rate will change over the time and could be the optimal rate depending on market conditions. You can switch between the stable and variable rate at any time through your dashboard.
No, you can only borrow using either a stable rate or variable rate for one asset.
The interest rate you pay for borrowing assets depends on the borrowing rate. This is derived from the supply and demand ratio of the asset. Moreover, the interest rate changes constantly. You can find your current borrowing rate at any time in the ‘Borrow Markets’ section of your dashboard.
Themis 2.0‘s interest rate algorithm is calibrated to manage liquidity risk and optimize utilization. The borrow interest rates are derived from the Utilization Rate (U).
U is an indicator of the availability of capital within the pool. The interest rate model manages liquidity risk in the protocol through user incentives to support liquidity:
When capital is available: low interest rates to encourage borrowing.
When capital is scarce: high interest rates to encourage repayments of debt and additional supplying.
See below for more details:
https://themis-exchange.gitbook.io/copy-of-themis-2.0/features/m0-dashboard/interest-rate
Stable rate rebalance is expected to be unlikely, but will happen if the average borrow rate is lower than 25% APY and the utilization rate is over 95%.
To switch your interest rate between stable and variable rate, simply browse to your dashboard and click on buttons under the “Borrow APY Rate” for the asset you wish to apply the rate change.
The loan risk is the numeric representation of the safety of your deposited assets against the borrowed assets and its underlying value. The lower the value is, the safer the state of your funds are against a liquidation scenario.
There is no fixed time period to pay back the loan. As long as your position is safe, you can borrow for an undefined period. However, as time passes, the accrued interest will grow, which might result in your deposited assets becoming more likely to be liquidated.
In order to pay back the loan you simply go to the Borrowing section of your dashboard and click on the ‘Repay’ button for the asset you borrowed and want to repay. Select the amount to pay back and confirm the transaction.
In order to avoid the reduction of your loan risk leading to liquidation, you can repay the loan or deposit more assets in order to decrease your loan risk. Out of these two available options, repaying the loan would decrease your loan risk more.
In order to repay with your assets, go to your Dashboard and follow these steps:
Click on repay for the debt you want to repay.
Choose repay "With your current collateral"
Select the asset you want to repay and the amount on the left side (Borrowed Asset).
Select the asset you want to use to repay to in the right side (Select Collateral)
Make sure to check the swap rate and check the slippage. You can edit it based on your preferences. Depending on the slippage, the expected might differ and the transaction might even fail if you set it too low. After this click on Continue.
In the next step you need to send the approval and submit the transaction. The approval transaction will only be required the 1st time you do this step, unless you revoke the approval.
Make sure to have enough ETH for the transaction cost. After sending both transactions your repayment will be done.
A liquidation is a process that occurs when a borrower's loan risk goes beyond 100% due to their collateral value not properly covering their loan/debt value. This might happen when the collateral decreases in value or the borrowed debt increases in value against each other.
In M0:
The liquidator repays part or all of the outstanding loan amount, and the liquidator receives Liquidation Bonus. The liquidator can choose to receive the relevant amount of tToken instead of the underlying asset. When the liquidation is completed, the Loan Risk of the position is decreased to below 100%.
Liquidators can only close a certain amount of collateral defined by a close factor. Currently the close factor is 0.5. In other words, liquidators can only liquidate a maximum of 50% of the amount pending to be repaid in a position. The liquidation discount applies to this amount.
In M1:
When the Loan Risk of a debit order in M1 increases beyond 100%, the liquidator repays the entire outstanding amount to get the collateral at a discounted price. There is no LiquidationBonus in M1, but the liquidator is expected to receive a reward of approximately
*(1 -liquidationThreshold)CollateralValue.
loan risk=Outstandingdebtvalue/(assetValue*liquidationThreshold)
LiquidationThreshold is one of the factors that determine when an asset meets the liquidation condition. The substantial collateral value of the asset after completion of the charge is the asset value * LiquidationThreshold, which is the portion of the basis that the liquidator can obtain after paying the debt in lieu of the borrower.
The liquidation bonus depends on the asset used as collateral. Mostly, it is 5%.
💡 The liquidator will receive the collateral and Bonus, while the remaining collateral will be retained for the borrower
E.g.:
Assuming the MaxLTV of ETH is 80%, the LiquidationThreshold is 90%, and the LiquidationBonus is 5%, then for a $100 ETH deposit, the maximum dollar value that can be borrowed is $80, and the substantive collateral value of ETH is $90 when LoanRisk=Debt Value/Substantial Collateral Value = 100%, at which point it can be liquidated;
Suppose liquidation occurs because the debt grows to $90, then the liquidator needs to help repay the Token corresponding to $90 and get $95 of ETH collateral, the remaining $5 will be reserved for the borrower.
Suppose the debt is still $80 and the material collateral value of ETH = DepositLiquidationThreshold falls to $80, then at this time the collateral still has $88.8, then the liquidator will get $80+$88.85%=$84.4 of ETH after repaying the corresponding Token corresponding to $80, and the remaining $4.36 of ETH will be reserved to the borrower.
💡 The liquidator may also liquidate only 50% of the debtor's collateral
To avoid liquidation you can lower your loan risk by depositing more collateral assets or repaying part of your loan. Also, it's important to monitor your loan risk and keep it low to avoid a liquidation.
Yes, liquidations are open to anyone, but there is a lot of competition. Normally liquidators develop their own solutions and bots are the first ones liquidating loans to get the liquidation bonus.
Themis is a decentralized lending and borrowing platform that allows users or DAOs to collateralize their yield-bearing assets. This allows users to hedge, leverage or increase farming rewards from integrated protocols.
To use Themis, simply choose which asset you would like to lend or borrow, and how much. Yield-bearing assets like Uniswap v3 LP positions or Balancer Pool Tokens, as well as other blue chip assets, can be used as collateral to receive a loan.
Interacting with the protocol requires transaction fees for Ethereum/Polygon Blockchain usage. Fee amounts depend entirely on the current network status and transaction complexity.
Your funds are allocated in a smart contract. The code of the smart contract is public, open-source, formally verified and audited by third-party auditors. You can withdraw your funds from the pool on-demand or export a tokenized (SP-Tokens/stk-tokens) version of your lender position. SP-Tokens can be moved and traded like any other cryptographic asset on Ethereum/Polygon.
No platform can be considered entirely risk-free. Smart contract (risk of a bug within the protocol code) and liquidation (risk on the collateral liquidation process) are the top two priorities for Themis. Every step has been taken to minimize risks -- the protocol’s code is public and open-source and has been audited.
Themis currently does not have a mobile app available. If you find one, it is a scam. Themis Protocol will also never ask for your seed phrase or password.
Go to the "M0" or “M1” section and click on "Supply" for the asset you want to lend. Select the amount you'd like and submit your transaction. Once the transaction is confirmed, your lending position is successfully registered and you begin earning interest.
Each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which evolves with time. You can find the average annual rate over the past 30 days to evaluate the rate evolution. And you can also find more data on the reserve overview of each asset in the home section of the app.
There is no minimum or maximum limit.
Go to the "M0" or “M1” section and click on “Harvest”. Select the amount to withdraw and submit the transaction.
Make sure to select the correct network. You can switch the network in the settings option within your wallet provider.
Make sure you have enough ETH in your wallet to interact with the platform.You must have ETH in your wallet for the transaction costs -- without it you won't be able to interact. Depending on the network status, the cost of the transactions may vary. At least 0.05 ETH may be required to interact properly.
If you used the Themis protocol in the past and do not find your position in the current markets available, it is possible that you used the Themis V1 protocol. You can find an interface to interact with V1 version of the Themis protocol at https://v1.themis.com/
The following steps may solve your problems:
If you are using Brave browser, switch to another browser to see if the issues are coming from the browser. If it is related to Brave browser, some helpful actions are: clearing cache data and cookies for the site, hard refresh with ctrl + F5 (or cmd + r), disable brave wallet (or the wallet not being used as default, for example MetaMask, Dapper, etc.) or other extensions that might be interfering with proper connection with the wallet. If the site still won't load after taking the steps above, you will have to use the platform in another browser.
Make sure your internet connection is working and stable
Restart the browser and try to connect again
Try to hard refresh the site with control + F5
Check if there are any updates for your browser or wallet provider. If so, update it to the latest version.
In this situation make sure to not keep sending transactions, as every new transaction will be stuck pending until the oldest transaction is confirmed. You can get rid of the stuck transaction by speeding it up or canceling it. Depending on the wallet you are using, you may have that option natively.
For example, MetaMask or Trust Wallet have both the options to cancel or speed up transactions.
Alternatively, if your wallet provider doesn't have this option, you can still drop the stuck transaction by sending a 0 ETH transaction, to your address (to yourself) using the same nonce (number id). You can inspect the nonce in your transaction in Etherscan and use interfaces such as MEW and MyCrypto to send this transaction with a higher gas cost and replace the one that is stuck.
Here are a couple of guides about the topic for MEW and MyCrypto.
The E-mode feature maximizes capital efficiency when collateral and borrowed assets have correlated prices. For example, DAI, USDC, USDT are all stablecoins pegged to USD. These stablecoins are all within the same E-mode category. Accordingly, a user supplying DAI in E-mode will have higher collateralization power when borrowing assets like USDC or USDT.
Only assets of the same category (for example stablecoins) can be borrowed in E-mode. E-mode does not restrict the usage of other assets as collateral. Assets outside of the E-mode category can still be supplied as collateral with normal LTV and liquidation parameters.
To enter E-mode from the dashboard, go to the dropdown menu under the "Borrow Markets” where you will find an “Enable E-mode” button. Initially, the button to enable E-mode will indicate that E-mode is “disabled.” Click “Enable E-mode" ” and follow the instructions in the pop-up. Once you have followed the instructions, you will have enhanced borrowing power (i.e., up to 97% LTV) within E-mode and can only borrow assets within the same category of assets (for example, stablecoins).
To exit E-mode, select "Disable E-mode” from the dropdown under the “Borrow Markets” section. Follow the instructions in the pop-up to exit E-mode.
When E-mode is enabled, you will have higher borrowing power over assets of the same E-mode category.
M0 allows you to create a passive income scenario with extremely liquid assets. Users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn passive income, while borrowers are able to borrow as either overcollateralized (in perpetuity) or undercollateralized (a single block of liquidity).
M1 means cash and demand deposits — to accommodate more liquid assets for collateralization, similar to "demand deposits" in other DeFi. The activity of M1 will make the M0 funds more efficient, increasing the passive income of M0 providers and giving more scenarios for the use of liquidity in other DeFi protocols.
Themis 2.0 upgrade primarily enhances the entire LendingPool, which is no longer just a simple non-custodial agreement for NFTs to lend and borrow, but a new model that allows depositors access to borrowing power with higher liquidity and a more complete risk control system.
tTokens are tokens minted and burnt upon supply and withdrawal of **assets to a Themis market, which denote the amount of crypto assets supplied and the yield earned on those assets. The tTokens’ value is pegged to the value of the corresponding supplied asset at a 1:1 ratio and can be safely stored, transferred, or traded. All yields collected by the tTokens' reserve are distributed to tToken holders directly by continuously increasing their wallet balance.
The sTokens and vTokens are debt tokens. In the LendingPool's interest rate algorithm, the s/vToken increases over time along with the tToken. tTokens & s/vTokens are both minted and burned 1:1. Burning s/vTokens when the user repays the borrowed assets means that the borrower will pay in more tokens, and when the user's tToken increases, the corresponding token is taken out when withdrawing to the pool.
💡 s/vToken cannot be transferred without permission, and their Balance is constantly changing in the wallet, with the amount changing each time it is settled.
M0 primarily offers secured lending on blue-chip assets, typically EIP-20 assets.
M0 can support EIP-2612, which means that after obtaining Permit, users holding these assets do not need to do Approval.
From administrator mode to community DAO
From a protocol security perspective, the protocol will gradually transition from an administrator model to a community-owned governance development. Eventually, Themis Protocol will be completely left to the community, TMS holders, and agents worldwide for governance.
Themis attaches great importance to our community. The token of Themis $TMS is a utility token, which allows the community to vote for the protocol’s future.
Yes, we’ve designed our DAO to be as inclusive as possible :)
Come join our discord : & Telegram:
To learn more about our DAO
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