Themis proposes to add lending support to FEI on Ethereum, and would also like to gain support from PCV to allocate 10M $FEI to bootstrap Themis.
The following is a proposal for a partnership between Fei Protocol and Themis Protocol.Themis is the first-ever protocol that provides borrowing & lending for the AMM market starting with UNI v3 LP positions.
We’re applying for $10M to kickstart the protocol. All funds will be locked via smart contract for 9 months then will be deployed into our lending pools.
Potential roadblocks/risks for the Tribe community;
Smart contracts: risks of being exploited. – Our smart contract and business logic have been audited by a reputable 3rd party. Also, a bounty program with Immunefi will be launched shortly.
Borrowers default; risk of default. – We will be whitelisting selected v3 LP pairs that fit our risk model of liquidity, reputation, and volatility. This ensures the safety of our lenders. Liquidation kicks in at 80% ensuring that our borrowers are always over collateralized. There is minimal risk of being liquidated; however, a full or partial repayment to the loan contract can be made at any time to lower this percentage.
Themis allows users who have a liquidity position with Uniswap v3 to collateralize up to 65% of their LP assets. This means that if you have $10k LP assets, you could receive up to $6500 in stablecoins like $FEI to do with as you will. Buy Lambo, go long on Shiba Inu, reinvest right back into your LP, who cares…
A good example would be the FEI/USDC LP pair. Users can collateralize their LP and borrow up to 65% in supported stablecoins like FEI and other whitelisted assets. This makes the current FEI/USDC pair at least 165% more capital efficient.
The success factor of any stablecoin derives from 3 things; community, liquidity, and adoption. The Fei community is one of the most forward-thinking communities. You’re building what will become the future of stablecoins. Themis wants to partner with Fei and we want to help increase liquidity and adoption of Fei Protocol. As we continue to develop and push for new features, we will be adding V2 LPs, staked LPs, Vault shares, and much more!
Themis is a new protocol that is currently bootstrapping its lending liquidity. This is a great way for the Fei treasury to earn sustainable interest without the risk of impermanent loss or volatility.
Allocate $10M $FEI liquidity from PCV to bootstrap the lending market of $FEI on Themis.