I came across this protocol where you can leverage some compatible yield-bearing assets. It’s called [Themis]( Specifically, it’s a liquidity protocol that takes advantage of ‘money legos’ to make liquidity more efficient. Some interesting factors:
# Using LPs as collateral
Say you deposit your tokens ETH-USDC tokens into a UniV2 pool and get LP tokens for it. Themis let’s you deposit those LP tokens as collateral to borrow stablecoins against them. This way you can continue earning yield by holding, and by depositing (earning even more yield). What’s more, you can now take a loan on stablecoins, leveraging your yield on the first ETH-USDC LP. These borrowed stablecoins can be used to buy other tokens, depositing into other Pools, or even to the initial ETH-USDC pool, closing the compounding cycle.
It’s a simple idea, and there are other protocols (e.g. [Oasis]( doing this. But how is Themis different?
# Crosschain Liquidity
You know how people are concerned about many L2s fragmenting liquidity? They have a right to worry: liquiditiy is getting slowly ‘separated’ into many chains, each with its own very clear advantages. This means that if we don’t find a way to ‘unify’ all that liquidity, we won’t be able to:
\- Earn high sustainable yield
\- Use big liquidity pools with low borrow APRs
\- Improve UX for newcomers
Unifying liquidity is something we need to do as a means of attracting newcomers to the space with interesting oportunities that stand out from TradFi.
A way to unify liquidity is through crosschain interoperability. What if Themis were to become crosschain?
# Themis + Connext = crosschain loans
Thanks to the integration with [Connext]( **users will be able to deposit collateral on any chain, and access Themis liquidity on any other chain securely.**
For example, a Uniswap LP token can be deposited on Optimism, and then USDC can be borrowed on Polygon where the interest rate/liquidity is more beneficial.
I think this will drastically improve UX. You don’t have to think about depositing collateral on chain A, then borrowing, then bridging borrowed assets to chain B to finally buy a token. You can do it all in one dApp without switching windows, and access all liquidity with a few clicks.
Themis is currently working on a V2 version. This is all ‘Coming Soon’ so we’ll have to wait to try it out.
[In-depth article about their integration with Connext](
What do you think about this technology?