Disclosure: I hold THL bought during the LBP. The contents of this thread reflect my opinions of the project and are presented for informational purposes only. Nothing contained in this thread is, and should not be construed to be, investment advice.
Thala stands at the forefront of DeFi on the Aptos, offering a comprehensive suite of DeFi tools. It includes:
-
ThalaSwap (DEX)
-
MOD Stablecoin (CDP stablecoin protocol)
-
Liquid Staking
-
Launchpad
Thala differentiates itself through a unique horizontal expansion strategy. Unlike many protocols that concentrate on developing products within a single niche, Thala offers a diversified suite that encompasses the most sought-after DeFi products available today. This approach has allowed Thala to integrate key features from various DeFi products selectively and consolidate them into a single platform.
Throughout 2023, Thala’s TVL showed limited growth, maintaining a rather consistent level until the release of its LSD product. The introduction of LSD marked a turning point, indicating a robust market demand for the suite of products offered by Thala. Currently, Thala’s TVL stands at a notable $79.4M.
In Dec, 2023, ThalaSwap had a surge in activity, with daily volumes reaching peak levels of ~$4M. Furthermore, they’ve shown remarkable growth, as evidenced by the increase in daily swaps—from 3.4K on Nov 28, 2023, to an impressive new high of 32K on Dec 24, 2023. This underscores the accelerating growth of ThalaSwap.
Thala leads Aptos in terms of user base, outpacing other protocols, including Pancake Swap and Liquid Swap, which follow closely behind.
Thala’s LSD protocol is anticipated to be a key product, distinguishing itself by offering stakers a commission-free experience. This feature sets it apart from other staking services that levy fees. The liquidity of LSDs also provides a vital advantage for stakers who value liquidity on staked APT.
thAPT and sthAPT operate similarly to frxETH and sfrxETH. sthAPT is entitled to 100% validator rewards from sthAPT + 80% of thAPT validator rewards. Moreover, the sthAPT pool also accrues fees on redemption fees on thAPT to APT and stake fees on thAPT to sthAPT.
thAPT holders can choose whether they want to LP and earn Thala emissions on the thAPT-APT LP vs earning enhanced staking rewards by staking their thAPT to sthAPT.
Currently, the thAPT-APT LP is earning 31.43% APR and sthAPT 11.74% APR, both of which are higher than the native staking rewards of 6.43%.
Thala’s token, THL, is primarily used to incentivize LPs and depositors in the stability pool on the Thala. Its governance model is underpinned by two staking options for acquiring voting-escrowed THL (veTHL):
-
Single-sided THL locked for 2-52 weeks
-
80-20 THL-MOD ThalaSwap LPT locked for 2-52 weeks similar to veBAL
For now, veTHL provides no incentives to lock other than governance. But features like revenue distribution, emission directing, and airdrops to veTHL lockers can be implemented in the future.
For now, Thala provides extremely attractive yields on various LPs, which can incentivize more depositors. However, do note that emissions are currently given out in escrowed THL (esTHL). esTHL rewards are vested over 30 days. Should users opt to exit before this, they will incur a penalty as steep as 80% of the esTHL position value if the exit occurs immediately upon vesting. However, the penalty decreases linearly over the 30-day vesting period.
Additionally, Thala’s close relationship with Aptos has the ability to king-make it on Aptos. They’ve provided value back to Aptos through various open-source initiatives, including Thala OSS and Surf SDK.
They’ve also set up Thala Foundry, a DeFi-centric incubator, to support the growth of the Aptos ecosystem. They’ve received an initial funding of $1M from Aptos, with the incubator aiming to fund $50K to $250K on selected projects.
These initiatives put Thala in an extremely favorable position within Aptos and allow it to capture Aptos’s DeFi growth in the future.