How Thales Protocol Powers Liquidity Incentive Program with Gelato
Gelato ecosystem spotlight: Meet Thales, a protocol that allows the creation of peer-to-peer parimutuel markets that anyone can join.
The Thales protocol is named after the ancient Greek philosopher Thales of Miletus, who became one of the first known people to exercise an option contract by cornering the olive market. Thales protocol allows for the formation of and participation in parimutuel markets on Ethereum.
Born out of the Synthetix ecosystem, Thales leverages Chainlink Data Feeds, trustless order books, novel AMM mechanism, and the decentralized sUSD stablecoin to provide participants with a novel on-chain, permissionless, and non-custodial way to access immutable parimutuel markets and trade positions backed by high-quality data for market resolution.
We asked the Thales team about building Thales and how they utilize Gelato’s automation for their liquidity incentive program.
Can you tell us more about Tale of Thales as an onboarding tool into Defi and Parimutuel markets?
Thales marketplace offers a framework for participating in the price movement of certain assets in the world of Defi in a really straightforward way. Each exposure has an exact capped downside and exact potential upside, both known from the moment of getting exposure. As this is a novel mechanism in the world of DeFi, first-time users might have a hard time understanding the simplicity and elegance of Thales markets until they start trading. This is where the Tale of Thales initiative comes in.
Tale of Thales is our in-house developed old-school exploration game where you play as Thales, exploring the island of Miletus and participate in adventures that, among other things, involve increasing your sUSD holdings by trading Positional Markets. The goal of the Tale of Thales initiative is to serve as an onboarding tool and educate users about the simple mechanics of our Parimutuel Markets through a fun gamified experience. During his in-game adventure, Thales character is meeting and interacting with some known characters from the crypto world while he learns the ropes of how to make great trades in the Parimutuel markets he’s offered.
Could you expand a little on the Thales Royale initiative and how it leverages the Parimutuel markets?
Thales Royale is a fully on-chain sequential winner(s)-take-all prediction game, inspired by the Battle Royale concept. This initiative takes advantage of Thales protocol core Parimutuel Markets infrastructure, which involves a users-deposited pool of collateral which is awarded to winners of said Parimutuel Market determined by some on-chain event around which the Parimutuel Market revolves.
This framework enables Thales Royale players to signal if a price of a certain asset will be above or below the current asset price in 24h. Whoever guesses correctly advances to the next round, while whoever guessed wrongly is eliminated from the competition. After a certain pre-set number of rounds have elapsed or if there is a last remaining player, the pool of all sUSD buy-ins is awarded to the winner(s) and claimable via the Thales Royale contract. This initiative is unanimously acclaimed by the Thales community as a fun and exciting gamified experience of participating in price movements of popular crypto assets.
How is Thales utilizing Gelato automation?
Thales utilizes the Gelato G-UNI framework to offer incentives to liquidity providers of the THALES token on Uniswap V3 on Optimism. With the recent THALES token migration to Optimism, Gelato’s deployment on that L2 network solved a major friction point of how to incentivize liquidity provision but also have a presence on Uniswap as a leading and most popular DEX. Thanks to the G-UNI framework, Uniswap V3 non-fungible LP tokens can be wrapped into fungible and composable ERC-20 tokens and thus allow protocols, such as Thales, to have versatility with liquidity provision incentives.
With Thales focusing solely on Optimism L2 network, we could potentially benefit from and start exploring more integrations with Gelato’s further expansion on Optimism.
If you’d like to know more about Thales, please visit their website at https://thalesmarket.io/ and check out their documentation here https://docs.thalesmarket.io.
About Gelato Network
Gelato Network is Web3’s premier automation network, enabling developers to automate a wide variety of arbitrary smart contract executions on and across all EVM-based compatible blockchains such as Ethereum. Examples of use cases developers have built on top of Gelato include Limit Orders on AMMs like Uniswap, automatic compounding of yield farming vaults, Aave liquidation protection, MakerDAO debt ceiling updates, automated liquidity management, and even the petting of Aavegotchis.
Our ultimate goal is to automate everything and by giving developers the reliable tools they need to do this, we can empower their users to get the most out of their Web3 experience.
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