Research Summary
This report discusses Thales, a decentralized platform that leverages blockchain technology to facilitate parimutuel betting and derivative markets. Thales, an offshoot of the Synthetix protocol, operates as a binary options protocol, enabling speculation on cryptocurrency prices through derivative contracts. The platform also includes sports betting, powered by its unique Automated Market Maker (AMM) design, which seeds liquidity to various markets.
Key Takeaways
Understanding Parimutuel Markets
- Definition of Parimutuel Markets: These markets involve participants pooling their bets into a single pool, in a winner-versus-loser format. The total pool size is determined by the sum of contributions from all bettors across all outcomes.
- Cryptocurrency and Parimutuel Markets: Cryptocurrency is well-suited for parimutuel markets due to the need for transparency, liquidity, effective decentralization, neutrality, and resistance to censorship.
- Thales and Parimutuel Markets: Thales architecture finds its relevance in parimutuel and custom markets, providing a unique design on the blockchain.
The Thales Design
- Origin of Thales: Thales is an offshoot of the Synthetix protocol, originally stemming from binary options. It has evolved into a groundbreaking Automated Market Maker (AMM) that fuels Parimutuel markets.
- Functionality of Thales: Thales operates as a binary options protocol facilitating speculation on cryptocurrency prices through derivative contracts. It also includes sports betting, inspired by the passionate interest of some of its key contributors.
- Thales AMMs: Thales has developed 4 major AMMs, each with unique capabilities tailored to their type of markets, whether binary options crypto derivatives or sports prediction markets.
Thales Architecture
- Thales AMM Design: Thales custom AMM overcomes the shortcomings of regular AMMs, avoiding issues such as impermanent loss, oracle front-running, and poor liquidity.
- Thales Safety Mechanisms: To enhance liquidity for positional tokens across various parimutuel markets within the Thales architecture, safety mechanisms are implemented to manage risks.
- Thales Vault Services: Thales offers Vault services, accepting sUSD deposits and deploying capital to diverse Buy-side strategies with zero fees.
Actionable Insights
- Exploring Thales: Interested parties can explore the various live markets on Thales or try out the Overtime web3 sports book and potentially qualify to receive some $Thales or $OP incentives.
- Investigating the Potential of Thales: Thales has the potential to become the most liquid layer in all of web3 due to its unique AMM design and the size of the betting industry.
- Understanding the Thales Token: The $Thales token could respond positively to a corresponding upside in RLB, as long as the Rollbit narrative stays alive.
