Thena Finance

Introduction

In response to the evolving landscape of concentrated liquidity—sparked by the expiration of Uniswap V3’s Business Source License—Thena Finance is poised to launch its own innovative concentrated liquidity solution on the BNB Chain.

Designed to differentiate itself with additional features such as built-in limit orders and dynamic pricing instead of traditional tiered fee structures, Thena aims to deliver superior fee optimization and improved capital efficiency.

Our engagement focused on a comprehensive economic analysis of Thena’s approach, benchmarking its performance against key competitors and assessing its potential to capture market share in this rapidly evolving environment.

This study examines trading patterns, fee dynamics, and strategic liquidity deployment across concentrated pools, while intentionally refraining from drawing specific conclusions at this stage.

Scope

• Market Landscape Analysis: Evaluate the current state of concentrated liquidity on the BNB Chain, including an in-depth comparison of trading volumes, Total Value Locked (TVL), and fee structures across leading DEXes such as PancakeSwap, Uniswap v3, and Trader Joe.
• Fee Structure Evaluation: Analyze both the static and dynamic components of Thena’s fee mechanism, determining optimal fee ranges by benchmarking against competitors and incorporating factors such as volatility, liquidity, and trading volume.
• Aggregator Routing Criteria: Investigate the key factors driving trade routing decisions in DEX aggregators, focusing on how low fees and deep liquidity influence optimal trade execution, and assess how Thena can position itself favorably within these routing algorithms.
• Strategic Pool Prioritization: Identify which concentrated liquidity pools present the most significant opportunities for increased trading volume and market share, and develop a framework for optimal vote allocation to strategically boost TVL and fee revenue.
• Economic Modeling & Recommendations: Develop an economic model to simulate the impact of varying fee structures and liquidity allocations, providing actionable insights and strategic recommendations to enhance Thena’s competitive positioning—all while leaving specific conclusions aside at this point.

Results and Findings

Our study identified key optimization opportunities in Thena’s dynamic fee model, pinpointing specific liquidity pools where strategic vote allocation could drive increased TVL and trading volume. These enhancements are positioned to bolster Thena's competitive edge in the concentrated liquidity market on the BNB Chain.