# Introduction

## Welcome to Thora Finance

Thora Finance is an EVM compatible lending/borrowing protocol that launched on Polygon zkEVM. Thora Finance provides peer-to-peer lending solutions that are fully decentralized, transparent and non-custodial. 

<figure><img src="https://3327670605-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKcfWEAvh9JkKkgM8Y9Lc%2Fuploads%2FBTHNRcfBNDfJ0oRPMHvR%2FWhatsApp%20Image%202023-10-10%20at%2015.42.11_c677cf45.jpg?alt=media&amp;token=9213cc4c-15f9-4829-8630-a08d9a84e6ee" alt=""><figcaption></figcaption></figure>

Similar to (and based from) existing lending platforms like [Compound Finance](https://compound.finance/) and [AAVE](https://aave.com/) users will be able to lend any supported assets on our platform, and use their capital to borrow supported assets.&#x20;

Thora aims to be the prime lending platform on zkEVM by offering highest competitive incentives for money markets, having the deepest liquidity.

### Links

Thora Finance : <https://thora.finance>

Twitter : <https://twitter.com/ThoraFinance>


# Wallet

To use Thora Finance, you need a MetaMask or web3 wallet connected to the zkEVM. For more information, visit their [website](https://docs.kava.io/docs/ethereum/metamask/).

Metamask by default only supports the Ethereum network. However when you connect MetaMask to Thora, Thora will automatically configure MetaMask to work with zkEVM.

To perform transactions on Thora or any other zkEVM protocols, you will need ETH for gas.


# FAQ & Troubleshoot

### Troubleshooting in general

* Try hard refreshing by pressing CTRL+F5 and clearing cache
* Switch from mobile to desktop
* Switch browser
* Make sure you're connected to zkEVM on your wallet. For bridging, make sure you're connected to the chain/network you want to bridge from.

Come to our [Discord Community](https://discord.gg/thorafinance) for more help!


# Contract Addresses

Will be updated once the protocol is ready.&#x20;


# Liquidation

Liquidation is determined by borrow collateral factors (used to determine initial borrowing capacity).

When an account’s borrow balance exceeds the limits set by collateral factors, it is eligible for liquidation. A liquidator (a bot, contract, or user) can call the absorb function, which relinquishes ownership of the accounts collateral, and returns the value of the collateral, minus a penalty (liquidation factor), to the user in the base asset. The liquidated user has no remaining debt, and typically, will have an excess (interest earning) balance of the base asset.

Each absorption is paid for by the protocol’s reserves of the base asset. In return, the protocol receives the collateral assets. If the remaining reserves are less than the target, liquidators are able to buy the collateral at a discount using the base asset, which increases the protocol’s base asset reserves.


# Collateral and Reserves

Will be updated once the protocol is ready.


# Interest Rate Model

## Interest Rate Model

### Borrow APR**​** <a href="#borrow-apr" id="borrow-apr"></a>

[`= Base + Multiplier * min(UtilizationRate, Kink) + max(JumpMultiplier * UtilizationRate - Kink, 0)`](#user-content-fn-1)[^1]

### Supply APR <a href="#supply-apr" id="supply-apr"></a>

`= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY`

`= Distribute [(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY`

`= {[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY`

`= {1 + [(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1`

[^1]:


# Audit

We are using the same codebase as Sonne Finance.

Sonne has been audited by the experts of Yearn Finance's yAudit. \
\
The audit has been done in a comprehensive way, auditing **ALL** of the contracts and strategies of Sonne. You can check the audit report below: \
\
<https://reports.yaudit.dev/reports/05-2023-Sonne/>


# Liquidity Generation Event(LGE)

The Thora token launch will be one of the fairest of DeFi, and it will be based on SONNE token liquidity generation event. \ <br>

<figure><img src="https://3327670605-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKcfWEAvh9JkKkgM8Y9Lc%2Fuploads%2FaG4bH4cJT4TEV7Uc1GBo%2FArtboard%201%20(4).png?alt=media&amp;token=3fe96a61-5924-450c-8b8e-3df9e9f3bdd0" alt=""><figcaption></figcaption></figure>

Users who deposit USDC into the LGE contract at any time during the LGE will be apportioned a proportional share of the LGE regular allocation. (3,2% of the total supply of THORA)

As an additional incentive, users who deposit during the ***first day*** will be apportioned a proportional share of the LGE bonus allocation. (0,3% of the total supply of THORA)

Claimable THORA will be based on share of the total deposits at the end of the bonus period. **There is no front-running** and being **first or last** to deposit for either distribution **doesn't matter**.

After the LGE event ends, 3,5% of the total supply of THORA will be claimed by users who participate in the event.

The entire USDC proceeds from the LGE, along with 2,5% of total supply of THORA will be used for the THORA/USDC pair on Zero.&#x20;

With these conditions, **LGE participants** will **receive 28% more** tokens than they paid for.&#x20;

***(For example, if you participated with 100 USDC, you'll receive 128USDC worth of THORA tokens at launch.)***

***50% of the LGE participant reward tokens will be unlocked instantly. The other 50% will be unlocked over a year.***

The **LP** tokens received by the LGE contract **will be locked** in the LGE contract for a minimum of **180 days**, ensuring plenty of early liquidity. After the lockup period ends, LP tokens will be transferred to the protocol reserves, where the strategy for their usage will be at the discretion of governance.

**LP tokens will** be staked on Zero to **earn $ZERO**. 10**0%** of the earned $ZERO will be distributed **to THORA stakers**.&#x20;


# Distribution

<figure><img src="https://3327670605-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKcfWEAvh9JkKkgM8Y9Lc%2Fuploads%2FMfsdHoHfZIyj8Q99XW4W%2FArtboard%201%20copy%205.png?alt=media&amp;token=1eab37fa-9233-42c1-8987-43053a6e1adc" alt=""><figcaption></figcaption></figure>

| Distributed to                                | Token Amount | Percentage |
| --------------------------------------------- | ------------ | ---------- |
| Rewards+Bribes (Community)                    | 60,000,000   | 60%        |
| Protocol Growth                               | 4,000,000    | 4%         |
| Sonne Stakers                                 | 10,000,000   | 10%        |
| Mare Stakers                                  | 5,000,000    | 5%         |
| Core Team (3 months cliff/2-year linear vest) | 12,000,000   | 12%        |
| LGE Participants                              | 3,500,000    | 3.5%       |
| Community Airdrops                            | 3,000,000    | 3%         |
| Initial Liquidity                             | 2,500,000    | 2.5%       |

Important note: ***Team will be excluded from SONNE and MARE staker distribution.***\
\
***MARE/SONNE staker distribution will be vested similar to the team.***


# Reward Emissions and Bribes

## Reward Emissions and Bribes

$THORA will be rewarded to users who lend/borrow tokens in the protocol. Emissions will take place for 3 years.

$THORA reward emissions will decrease over time.

For liquidity, Thora Finance will be bribing Zero on a weekly basis. Instead of giving tokens freely to liquidity providers, Thora Finance chose this way. Earned $ZERO will be distributed to $THORA stakers.

For the first month, $THORA supply emissions rate will be equal to borrow emissions rate. After the first month, it will be %10-%70-%20 Supply-Borrow-Bribe. The rates can be adjusted via governance in order to keep up with the market.

## ​​Emission Schedule

$THORA emissions over month. y-axis represents $THORA amount, x-axis represents time (every 1 tick represents 1 month or specifically 30-days)

<figure><img src="https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcU7c8Y4J72thAtP7q6mA%2Fuploads%2FZalkNIz2YisERfi6IWHX%2Fimage.png?alt=media&#x26;token=c19d7c9d-e60a-40da-8fe3-1f0e186919cf" alt=""><figcaption></figcaption></figure>

<table data-header-hidden><thead><tr><th></th><th width="91"></th><th></th><th width="109"></th><th></th><th></th></tr></thead><tbody><tr><td>Interval</td><td>DAYS</td><td>Emission/day</td><td>Lend/day</td><td>Bribes/ day</td><td>Borrow/day</td></tr><tr><td>1</td><td>30</td><td>155391</td><td>62156</td><td>31078</td><td>62156</td></tr><tr><td>2</td><td>30</td><td>152486</td><td>15248</td><td>30497</td><td>106740</td></tr><tr><td>3</td><td>30</td><td>146677</td><td>14667</td><td>29335</td><td>102674</td></tr><tr><td>4</td><td>30</td><td>135059</td><td>13505</td><td>27011</td><td>94541</td></tr><tr><td>5</td><td>30</td><td>118116</td><td>11811</td><td>23623</td><td>82681</td></tr><tr><td>6</td><td>30</td><td>99237</td><td>9923</td><td>19847</td><td>69466</td></tr><tr><td>7</td><td>30</td><td>84714</td><td>8471</td><td>16942</td><td>59300</td></tr><tr><td>8</td><td>30</td><td>75517</td><td>7551</td><td>15103</td><td>52862</td></tr><tr><td>9</td><td>30</td><td>69708</td><td>6970</td><td>13941</td><td>48795</td></tr><tr><td>10</td><td>30</td><td>65351</td><td>6535</td><td>13070</td><td>45746</td></tr><tr><td>11</td><td>30</td><td>62447</td><td>6244</td><td>12489</td><td>43712</td></tr><tr><td>12</td><td>30</td><td>59542</td><td>5954</td><td>11908</td><td>41679</td></tr><tr><td>13</td><td>30</td><td>56638</td><td>5663</td><td>11327</td><td>39646</td></tr><tr><td>14</td><td>30</td><td>53733</td><td>5373</td><td>10746</td><td>37613</td></tr><tr><td>15</td><td>30</td><td>50828</td><td>5082</td><td>10165</td><td>35580</td></tr><tr><td>16</td><td>30</td><td>47924</td><td>4792</td><td>9584</td><td>33547</td></tr><tr><td>17</td><td>30</td><td>45504</td><td>4550</td><td>9100</td><td>31852</td></tr><tr><td>18</td><td>30</td><td>42599</td><td>4259</td><td>8519</td><td>29819</td></tr><tr><td>19</td><td>30</td><td>40179</td><td>4017</td><td>8035</td><td>28125</td></tr><tr><td>20</td><td>30</td><td>37758</td><td>3775</td><td>7551</td><td>26431</td></tr><tr><td>21</td><td>30</td><td>35822</td><td>3582</td><td>7164</td><td>25075</td></tr><tr><td>22</td><td>30</td><td>33401</td><td>3340</td><td>6680</td><td>23381</td></tr><tr><td>23</td><td>30</td><td>31465</td><td>3146</td><td>6293</td><td>22025</td></tr><tr><td>24</td><td>30</td><td>29529</td><td>2952</td><td>5905</td><td>20670</td></tr><tr><td>25</td><td>30</td><td>28076</td><td>2807</td><td>5615</td><td>19653</td></tr><tr><td>26</td><td>30</td><td>26624</td><td>2662</td><td>5324</td><td>18637</td></tr><tr><td>27</td><td>30</td><td>25172</td><td>2517</td><td>5034</td><td>17620</td></tr><tr><td>28</td><td>30</td><td>23720</td><td>2372</td><td>4744</td><td>16604</td></tr><tr><td>29</td><td>30</td><td>22752</td><td>2275</td><td>4550</td><td>15926</td></tr><tr><td>30</td><td>30</td><td>21783</td><td>2178</td><td>4356</td><td>15248</td></tr><tr><td>31</td><td>30</td><td>20815</td><td>2081</td><td>4163</td><td>14570</td></tr><tr><td>32</td><td>30</td><td>19847</td><td>1984</td><td>3969</td><td>13893</td></tr><tr><td>33</td><td>30</td><td>19363</td><td>1936</td><td>3872</td><td>13554</td></tr><tr><td>34</td><td>30</td><td>18395</td><td>1839</td><td>3679</td><td>12876</td></tr><tr><td>35</td><td>30</td><td>17911</td><td>1791</td><td>3582</td><td>12537</td></tr><tr><td>36</td><td>30</td><td>17427</td><td>1742</td><td>3485</td><td>12198</td></tr><tr><td>37</td><td>15</td><td>16942</td><td>1694</td><td>3388</td><td>11860</td></tr></tbody></table>


# Staking and Revenue Sharing

**sTHORA and uTHORA** represents the staked version of THORA. The main goal for staking is to distribute protocol revenue and ZERO rewards with stakers.&#x20;

***Stakers will get %100 of the protocol revenue.*** &#x20;

Protocol revenue is generated from taking a fee based on reserve factors for different pools. The more riskier the pool is, the more fees will be generated this way.

There will be 2 different pools for staking. One of them will be sTHORA where the rewards will be used for buying THORA from the market and distributing it to sTHORA stakers.

The other will be uTHORA where the rewards will be used for buying USDC from market and distributing it to uTHORA stakers.

Reward tokens are shared with stakers on a weekly basis because of Zero epochs. First rewards will be distributed 1 week later than the protocol deployment. &#x20;

When you wish to unstake, there will be 1 week delay. For example, if you staked and want to unstake in 21 November 2023, you will be able to withdraw your tokens in 28 Novermber 2023. This is a precaution for just-in-time stakers.

<figure><img src="https://3327670605-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKcfWEAvh9JkKkgM8Y9Lc%2Fuploads%2FqKagb67XWuCQr3DQbpTi%2FArtboard%201%20copy.png?alt=media&amp;token=14467a5e-35a3-4e44-93e3-6f2d4cce5244" alt=""><figcaption></figcaption></figure>

<figure><img src="https://3327670605-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKcfWEAvh9JkKkgM8Y9Lc%2Fuploads%2FYjfzCiCRO2VHjADFYfKo%2FArtboard%201%20copy%202.png?alt=media&amp;token=034acd19-8868-4ca7-afee-0cc3ded20247" alt=""><figcaption></figcaption></figure>

\
sTHORA features
---------------

* Because we will be distributing $ZERO rewards, there will be 1 week lock period for sTHORA to prevent just-in-time stakers (generally bots). Other than that, there will be no lockup period for sTHORA. &#x20;
* **Revenues** will be **distributed** based on your **share of total sTHORA** supply. (If you have 100k sTHORA and there is total of 1M sTHORA , you'll be entitled to %10 of the rewards


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