back21 Sep 20232 min read
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Innovative Markets and Community Governance with Thales I Consumer Spotlight

Thales stands out from other DeFi protocols for one reason: it’s trying something new. In an era of yet another borrowing and lending protocol, Thales is breaking new ground. How, you might ask?

Thales is an oracle-based liquidity solution that enables a wide range of on-chain Positional Markets, powered by user-friendly smart contracts.

Beyond traditional up/down positions, Thales offers innovative products like Ranged Markets AMM, community games like Thales Royale, and pioneering SportsAMM and ParlayAMM solutions leveraging on-chain sports data.

Let’s dive in.

Full Suite of Features

Thales is an Ethereum protocol that allows the creation of peer-to-peer parimutuel markets that anyone can join. This is the foundation for the following on-chain initiatives:

Parimutuel Markets

Thales breaks new ground with its Parimutuel Markets where collateral is pooled together, and winners share the pool after a market event. Whether it's two outcomes or many, the total pool (minus fees) is distributed among winners, making it fun and easy to grasp.

Custom Markets

Thanks to oracles providing off-chain data, any event can create a market if the outcome can be defined. From deadlines to competition winners or asset prices, the possibilities are endless, which means flexibility without excessive risk.

Tokenized Positional Markets

Thales enables users to engage in markets with two possible outcomes centered around a specific asset's Strike Price. Each Positional Market mints UP and DOWN tokens, 100% collateralized by USD. You can trade these tokens on the Automated Market Maker (AMM), and winning tokens can be redeemed at a 1:1 ratio.

Tokenized Ranged Markets

Ranged Markets revolve around Price Ranges rather than a single Strike Price. Instead of UP and DOWN tokens, Ranged Markets offers IN and OUT tokens representing exclusive outcomes. You can trade these tokens on the AMM and are redeemable for USD in a 1:1 ratio.

Speed Markets

Speed markets enable rapid positioning on short time frames and dynamic strike prices. Every position offers 50:50 odds, and Pyth Benchmark oracles provide real-time pricing data.

These innovative on-chain initiatives offered by Thales open the door to a more dynamic DeFi landscape with a range of markets to suit your preferences and trading style.

Governance and $THALES

Thales illustrates the power of decentralized autonomous organizations (DAOs) in shaping the DeFi landscape. Governed by a trio of DAOs, the protocol thrives on community-led management.

Drawing inspiration from the successful Synthetix governance model, Thales has established a robust structure where each of the three core DAOs plays a distinct role.

The three DAOs include:

  1. The Thales Council: Reviews and votes on community-submitted Thales Improvement Proposals (TIPs) to decide on protocol changes.
  2. The Protocol DAO: Oversees code upgrades, releases, and operational security as directed by the Thales Council.
  3. The Thales DAO: Allocates incentives to other DAOs, contributors, and community members, while safeguarding funds for platform security and stability.

Powering Thales with Pyth Price Feeds

With the help of Pyth Benchmarks, Thales’ Speed Markets operate in near real-time.

Traders select an asset, choose a direction (UP or DOWN), and specify a strike time based on their price predictions relative to the current asset price. Pyth Benchmark pull oracles play a pivotal role in validating these trades. By offering historically queryable prices updated every second with data from reputable first-party publishers, Pyth provides efficient risk management for intraday markets like Speed Markets.

You can fully experience Thales and Pyth Network’s collaboration by visiting their website.

We can’t wait to hear what you think! Feel free to join the Pyth Discord and Telegram, follow Pyth on Twitter, and be the first to hear about what’s new in the Pyth ecosystem through our newsletter. You can also learn more about Pyth here.

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