TL;DR
We are thrilled to announce a new partnership between THENA, a cutting-edge decentralized exchange (DEX) built on BNB Chain and opBNB, and Brevis, to bring advanced, data-driven features to THENA’s platform. We’re working closely with THENA to launch several Brevis-powered Intelligent Plugins, which will enhance THENA’s capabilities and create a more dynamic and rewarding experience for its users and community.
Introducing Brevis-Powered Intelligent Plugins for THENA
As part of this collaboration, THENA, using the Integral framework by Algebra, will be leveraging Brevis ZK Coprocessor to implement the following innovative features as Intelligent Plugins, aimed at improving fee structures, user experience, and LPs’ yields.
Token-Holding-Based Fee Tiering
Long-term and large quantity token holders are cornerstones for a project’s success: they are often active participants in a project’s governance, staking, and other utility-driven use cases. Projects when provisioning on-chain liquidity in DEXes, naturally want to offer lower fees for these major holders to trade (especially to buy) more protocol tokens. There is no doubt that the long-term benefits of a major token holder outweigh the fees generated in the trading process for these major holders.
However, DEXes face significant challenges when implementing such incentive programs due to several limitations. Smart contracts lack the flexibility to support custom business logic, like user-specific fee structures. Accessing historical storage data on-chain, which is essential for calculating users’ token holdings, remains prohibitively expensive. Meanwhile, relying on off-chain centralized solutions poses serious security risks and undermines decentralization.
THENA and Brevis together address this challenge by implementing a ZK Coprocessor powered dynamic fee plugin based on the time weighted average of token holding balance. As an example, a long-term $THE holder can generate a ZK proof of their “OG holder” status using Brevis. Once the proof is verified on-chain in the dynamic fee plugin, they will enjoy a trading discount for $THE related pools. This approach encourages long-term commitment, boosts token liquidity and utility, and fosters deeper engagement within the THENA community.
Trading Volume-Based User Loyalty Program
Just like token holding-based dynamic fees, DEXes have long lagged behind centralized exchanges (CEXes) in offering trading volume-based incentive programs. CEXes easily implement such programs by using centralized databases to track and compute user activity, but DEXes face significant technical and cost barriers.
The introduction of the Trading Volume-Based Dynamic Fees Plugin transforms this landscape by enabling THENA’s smart contracts, utilizing the Brevis ZK Coprocessor, to calculate users’ past trading volumes, generate ZK proofs, and trustlessly verify each user’s eligibility for discounts—dynamically applying reduced fees! This innovation bridges the gap between DEXes and CEXes, enabling robust loyalty programs while preserving the decentralized nature of blockchain.
Loss-Versus-Rebalancing Protection for LP
Loss-Versus-Rebalancing (LVR) is a form of value extraction that affects liquidity providers (LPs) in automated market makers (AMMs). It occurs when arbitrageurs exploit discrepancies between an AMM’s asset prices and those on more liquid exchanges, such as CEXes like Binance. When an AMM’s prices become outdated or “stale” compared to these external markets, arbitrageurs can trade against the AMM to profit from the price difference. This process effectively rebalances the AMM’s portfolio but at the expense of the LPs, who incur losses relative to a scenario where their portfolio was rebalanced at current market prices.
LVR is most pronounced when the market volatility is high where the arbitrageurs can easily exploit these pricing discrepancies. One natural solution to protect LPs from LVR-induced losses is to introduce dynamic trading fees based on market volatility. While on-chain solutions can react to large orders well, they often fail to capture mid-term market dynamic changes.
With Brevis, pool creators can directly generate a ZK proof of market volatility using historical on-chain data in close to a real-time fashion and dynamically increase trading fees via a THENA plugin when the volatility is high. With this feature, passive LPs in THENA will be able to receive more fee revenue from traders even under volatile market conditions.
Looking Ahead
Brevis and THENA are currently collaborating to launch these new features on the mainnet in Q1, bringing innovative capabilities to THENA’s ecosystem. By integrating Brevis’s ZK-powered plugins, Brevis and THENA plan to continue to push the boundaries of what’s possible in DeFi, building new, innovative solutions to enhance liquidity, incentivize user behavior, and help scale the decentralized financial ecosystem.
We’re excited to be a part of THENA’s journey and we can’t wait to share more updates as we roll out these exciting new features. If you’re also interested in building with Brevis, don’t hesitate to get in touch and we’ll help you get started—get connected with a builder now!
About Brevis
Brevis is an efficient, verifiable off-chain computation engine that brings limitless computation capacity to existing smart contract blockchains. Utilizing zero-knowledge proofs, Brevis offloads data-intensive, costly computations from on-chain environments to a drastically lower-cost off-chain engine, and empowers Web3 applications to scale seamlessly while preserving the security of L1 trust assumptions.
With Brevis’s versatile Go SDK, smart contracts can access blockchain states, transactions, and receipts across multiple blockchains and timeframes. DApps can transform complex business logic that are expensive to execute with smart contracts into succinct, low-cost circuit outputs that are mathematically verifiable on-chain. Powered by Brevis, use cases like data-driven DeFi, personalized GameFi experiences, and on-chain reputation systems can unlock the full potential of decentralized data, and accelerate blockchain adoption on a broader scale.
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About THENA
THENA is the liquidity layer and DeFi hub of the BNB Chain ecosystem, designed to drive innovation, efficiency, and growth in decentralized finance. Powered by the revolutionary ve(3,3) model, THENA aligns incentives between stakeholders, offering advanced liquidity solutions, governance mechanisms, and tools for both retail and institutional users.
THENA’s modular infrastructure with V3,3 features like concentrated liquidity pools, weighted pools, and customizable plugins (“Hooks”), enabling unparalleled flexibility for liquidity providers and projects alike. With a strong focus on fostering sustainable growth, THENA serves as a launchpad for emerging protocols while supporting established ecosystems through tailored incentives and trading competitions via THENA ARENA.
Since its launch in 2023, THENA has generated over $25M in revenue, distributed directly to its community-driven governance participants without any VC funding. As THE premier decentralized exchange on BNB Chain, THENA is committed to advancing DeFi, bridging Web3 innovation with real-world adoption.
For more information, visit thena.fi.
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