Champion THE - chamTHE
Overcollateralized Champion-escrowed $THE (THENA DEX - BNB chain)
$THE is the native token of Thena Finance, a decentralised trading and liquidity marketplace native to the BNB blockchain. It rewards holders with a share of the platform's revenues and also acts as a governance token for its weekly pool incentives gauge. THE has a decaying emissions model.
Users can stake and lock their $THE tokens on THENA for a fixed period between 2 week and 2 years, to receive a vote escrow NFT ("veNFT"), which is used to record the amount of $veTHE held by the user.
$veTHE holders receive four benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $THE emissions distributed to platform liquidity providers;
- weekly veTHE distribution (rebase);
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
$veTHE positions can be merged, split, and sold on the secondary market. $veTHE time lock period can be extended.
The amount held by a given user decreases steadily to zero as the lock period moves towards its completion. Weekly rebase is to safeguard $veTHE holders from dilution and to enable a dynamic distribution of $veTHE among participants over time, the anti-dilution level has been capped at 30%;
$chamTHE is an Overcollateralized Champion-escrowed version of $THE staked for $chamTHE to take advantage of the various benefits offered to THENA stakers.
You can mint $chamTHE on the $chamTHE vault page at a 1:1 ratio. There is no incentivised liquidity for $chamTHE, instead there will be a withdrawal reserve.
You can redeem $chamTHE to $THE anytime as long as there is $THE reserve in the contract.
The contract's $THE required reserve starts from 15%, increase 5% every 1 month and upto 50% of the contract's $chamTHE
Contract's age | Contract's $THE required reserve |
|---|---|
1st month | 15% |
2nd month | 20% |
3rd month | 25% |
4th month | 30% |
5th month | 35% |
6th month | 40% |
7th month | 45% |
From 8th month | 50% |
When the contract's reserve is at a certain level less than required reserve, there is a penalty fee when redeem $chamTHE to $THE.
The penalty fee is based on the reserve rate:
Reserve rate = (current reserve/ required reserve)*100%
Reserve rate | Redeem penalty (%) |
|---|---|
Above 60% | 0% |
Less than 60% | 0.25*(100%- Reserve rate) |
Redeem penalty allocation:
- 50% of the redeem penalty $chamTHE will go to Champion Treasury and become permanent voting power of Champion.
- 50% of the redeem penalty $chamTHE will go to BNB chain's dead wallet, and the $THE back for those $chamTHE will be permanently locked in the contract, permanently out of circulating supply.
In order to avoid a large redeem to take advantage on the penalty fee, there is a maximum amount of 0.5% total supply of $chamTHE for every redeem. Users can redeem many times as they want.
From the begining of the contract, $chamTHE token is fully backed 1:1 by $THE.
$chamTHE is minted from $THE at 1:1 ratio and can be redeemed for $THE held in reserves.
Contract's reserve fills up in several circumstances:
- when new users deposit $THE into $chamTHE, if below the required reserve amount at the time;
- when the contract harvests trading fees and bribes from THENA, if below the required reserve amount at the time; or
- if the contract's staked $THE is left to gradually unlock.
By the time, when user redeem $chamTHE to $THE and generate penalty fee. Half of the penalty fee $chamTHE will be sent to dead wallet and permanently out of circulating. The back ratio of $chamTHE will be above 1:1 by $THE and $chamTHE in the contract will become over-collateralized.
The more $chamTHE is redeemed at lower reserve rate--> the more penalty fee is generated--> the more backed ratio of $THE is--> the more overcollateralized $chamTHE is.
When you mint $chamTHE, the contract will immediately try to stake and lock the deposited $THE into $veTHE, subject to the required reserve being maintained.
If the contract's $THE reserves at the time of minting exceed the required reserve amount, the contract can stake any excess $THE into $veTHE. If the $THE reserves are under the required reserve amount, then the deposited $THE will be added to the reserve to cover the current shortfall.
Once the contract's $THE is staked and locked into $veTHE, it receives four benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $THE emissions distributed to platform liquidity providers;
- weekly veTHE distribution (rebase);
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
As the $chamTHE contract perpetually re-locks its $THE deposits, it always strives for the maximum amount of voting power and benefits. Earned trading fees and bribes are regularly harvested, swapped for $chamTHE and redeposited to the $chamTHE vault to autocompound the return for $chamTHE stakers.
Once you're holding $chamTHE, you can stake it in our $chamTHE vault to earn more $chamTHE.
Where our $chamTHE contract earns trading fees, rebase and bribes by deploying its $veTHE on the protocol, those protocol revenues are swapped back to $chamTHE and redeposited into the $chamTHE vault to give rise to an autocompounding effect. This maximises the yield for holders above what they could obtain alone from the protocol.
Champion strives to maintain some of the lowest yield-optimizing fees, and charges standard fees on its $chamTHE vaults.
$chamTHE holders need to deposit their $chamTHE into the autocompounding vaults.
There is no deposit fee & withdrawal fee
Total of 6% perfomance fee, including:
- $Cham staker and/or bribes for CHAM pool on THENA: 2.5%
- CF&DF Treasury: 3%
- Vault Developer: 0.5%
There's no liquidity provided for $chamTHE (eg. $chamTHE-THE LP, ...), so it will always be at 1:1 with $THE. Users can burn $chamTHE for $THE while the reserve lasts without affecting the peg.
Whilst there are $THE tokens available in the reserve, you will be able to burn your existing $chamTHE tokens (up to the amount of the reserve) to receive back an equivalent amount of $THE.
Where the reserve does not hold sufficient $THE tokens to facilitate the requested withdrawal, you will only be able to withdraw up to the amount of the reserve. Users can then wait until the next harvest of trading fees and bribes, which will refill the reserve and allow them to burn their $chamTHE. Otherwise, THENA's locking mechanism does not include an emergency release mechanism.
As the required reserve amount is tied to the amount of $chamTHE held by the contract, and all $chamTHE balances reduce over time as the time left until unlock decreases, the amount of reserve required will also naturally decrease over time until the $veTHE lock is extended. As such, and assuming that no further $THE deposits are made to replenish the reserve, the required reserve amount will gradually decrease over time, meaning the amount of $THE available to withdraw will increase constantly.
No. All $THE voting power will be used by Champion to vote in the weekly liquidity pool incentives gauge.
Votes will typically be directed either to the liquidity pools offering the most in trading fees and bribes, or to the liquidity pools which support our CHAM token (CHAM-BNB/ CHAM-THE LP). The $chamTHE contract will harvest all trading fees, rebase and bribes from the protocol and swap those for more $THE to autocompound in the $chamTHE vault (thus increasing yield for holders). Voting on THENA's incentivised liquidity pools takes place on its web app.
- If you want to get in $THE to earn voting APR but do not want to lock into $veTHE
- If you do not have enough time to do the vote yourself
- If you want to get a maximum timelock (2 years) to generate maximum voting power and a maximum voting yield, when you also want to be able to witdraw your $THE and sell to fiat in emergency case.
- If you want to enjoy "the eighth wonder of the world" - autocompounding
Then wrappers and optimizers are there for you.
$chamTHE is one of the solutions.
There are some reasons:
- Protocols with vote-escrowed model normally see wrappers as the exist liquidity for their vote-escrowed tokens.
- All the wrappers and their investors are facing some main difficulties: Losing its peg for the peg model or Drained out its reserve for the reserve model
$chamTHE is built to solve it and bring a win-win-win relationship to investors, vote-escrowed protocols and Champion
- For investors: with flexible required reserve, penalty fee and overcollateralized model, $chamTHE can maintain a sustainable & high APY, high ratio of $THE reserve.
- For vote-escrowed protocols: Bring constant buy pressure on dex rewards token and with the overcollateralized model, $chamTHE help to permanently remove certain quantity of $THE tokens from circulating supply.
- For Champion: Treasury will generate permanent voting power, maintain a long-term revenue.
$chamTHE is not the perfect solution. When you own a big portion of the $chamTHE (bigger than require reserve) and you are in an emergency case, you will not be able to redeem your whole bag. You have to redeem slowly overtime and/or facing a hugh number of the penalty fee.
In emergency case, you can contact to the team throught discord & telegram channel. We will discuss together to find solutions, including P2P trade your $chamTHE with other trusthworthy investors.
Last modified 6mo ago