ℹ️Introduction to Thales Protocol

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Thales Protocol is a suite of smart contracts on the Ethereum Network that provides an easily integratable Liquidity and Automated Market Making layer for probability based markets (Digital Options, Sports Markets etc.) that are settled by various onchain Oracle Data sources.

Purpose of the Thales Protocol

By providing a secure, transparent and decentralized infrastructure for Traders on one side and Liquidity Providers on other side, Thales Protocol revolutionized probability based exclusive-outcome markets on a global scale. It serves as a globally accessible onchain Automated Market Making architecture that allows traders to place positions on Sports, Digital Options etc. against a collateral provided by AMM Liquidity Providers.

How Thales solved the Market Making problem of exclusive outcome markets

Market Making in units of token prices has always plagued various Prediction Market products on Ethereum Network. Constant Function Market Making incur significant losses in this scenario, due to the fact that the losing side of the market has to go to zero on maturity. A different Market Making approach had to be invented.

Insert from Delphi Digital's article on Thales Protocol

Thales Protocol solved this problem by building it's Automated Market Making architecture as such that it provides on-demand liquidity around a fixed oracle-based probability reference point. This also allows the Thales AMMs to offer on-demand liquidity to multiple markets from a single specialized AMM contract that uses a single counterparty collateral pool. Controlling risk management with a risk cap and skew impact allows the AMM to market make in units of risk rather than token prices. This means that the AMM has theoretically unlimited capital efficiency, so long as the risk exposure of a pool remains within the risk cap.

Novel onchain solutions bring novel onchain products

Thales Protocols simple yet powerful Smart Contracts allow anyone to participate in various decentralized exotic products as a Trader or as a Liquidity Provider, that leverage the same foundational Thales Protocol collateralization architecture.

⚽ Thales Sports Markets

Fully decentralized Sports AMM solution that allows users to place fully collateralized onchain positions and leveraged Parlays on Sports Results, Game Stats, Player Props etc. Users can also deposit funds into the Sports AMM and Parlay AMM Liquidity Pools to provide collateral for traders and gain exposure to the performance of the Sports AMM, effectively becoming The House. Thales Sports Markets settlement data is fully backed by robust Sports Data from Chainlink Oracles.

📈 Thales Digital Options

UP or DOWN tokenized positions on Crypto Strike Prices on specific Strike Dates. Users can choose from a wide variety of Chainlink supported crypto assets and commodities to trade around. Users can also deposit funds into the Thales AMM Liquidity Pool to provide collateral for traders and take exposure to Thales AMM performance. Users can also trade Volatility Digital Options by using Ranged Markets product built on top of the ThalesAMM architecture. It offers IN or OUT tokenized positions on Crypto Price Ranges on Specific Strike Dates.

⚡ Thales Speed Markets

Short term intraday positioning on the direction of Crypto Assets from the Current Price, settled at a chosen Strike Time, with a fixed potential profit of 2X for each trade (before fees). By using the Speed Markets AMM, users can take positions as short as 15 minutes or up to a maximum Strike Time of 24 hours. Users can also chain several Speed Markets into one transaction for a potential maximum 47X return.

Integratable on Optimism, Arbitrum, Base and Polygon

Anyone can use the Thales APIs to access the pricing data and execute and settle trades that happen on the Thales Protocol smart contracts.