Thala, DeFi HyperApp. Here are the characteristics and objectives of this new ecosystem linked to DeFi.
Thala is a decentralized finance (DeFi) protocol native to the Aptos blockchain. The protocol revolves around two key products: Move Dollar and Thala Swap.
Thala enables seamless borrowing of Move dollar and efficient liquidity provisioning.
Three benefits, features to remember:
Enhance your yield
Provide cash, stakes or use recurring borrowing with $MOD to generate sustainable returns.
Borrow with Flexibility
Open vaults against a diverse range of token assets, unlocking the capital efficiency of your idle holdings.
Secure and Sound
$MOD is over-collateralized and backed by highly liquid or redeemable assets, ensuring robust peg stability.
Thala Swap is an automated market maker that enables dynamic pool weightings. The protocol supports weighted pools, stable pools, and liquidity bootstrapping pools, among others. Thala Swap unlocks additional use cases for MOD, and the protocol’s ownership of liquidity enables deep, long-term liquidity that can exist largely un-incentivized.
Thala’s weighted multi-asset AMM is designed for versatility, unlocking capital efficient swaps and liquidity provisioning.
Dynamic pool weightings, and more specifically, the liquidity bootstrapping pool (LBP), powers Thala’s third product. Built on top of Thala Swap, Thala’s launchpad provides a safe and equitable way of distributing tokens for both projects and market participants.
Thala Launch is a community-focused, decentralized token bootstrapping protocol developed as part of the Thala DAO ecosystem.
The launches and upcoming launches on nascent ecosystems such as Aptos have led to a resurgence in new application-layer projects. Beyond private funding, projects have been looking for better ways to access communities via token distribution, whereas communities seek ways to get involved in quality projects early.
Thala Launch, through its bootstrapping mechanisms, aims to address this issue. By becoming the go-to venue for project launches, the Thala protocol becomes ever-so integrated across Aptos and other ecosystems – enabling synergies with the entire product stack in Move Dollar (MOD) and Thala Swap.
How ThalaLaunch Works?
Built on top of ThalaSwap, ThalaLaunch leverages a special pool type called Liquidity Bootstrapping Pools (LBPs). LBPs are a pool type that automatically changes the weights of pooled assets to produce more equitable distribution than simply creating a liquidity pool at an arbitrary price point.
Here’s a quick introduction. In an LBP, there are two assets: the quote asset (token “A”), which has a decreasing pool weight, and a distributed asset (token “B”), which has an increasing pool weight. The Token B price (so relative to Token A) is generally set higher to disincentivize market makers who have more efficient hardware and network infrastructure, as well as bots from buying much of the pool liquidity at the start of the LBP.
In most cases, unless there are considerable purchases of token “B”, the relative value of token “B” to token “A” will drop at the start. Participants can buy and sell the token freely — as long as the LBP is live — so organic price discovery can occur.
Move Dollar, or MOD, is a stablecoin originating from Aptos used to transact, facilitate and interact with various other DeFi. It also serves as a store of value, medium of exchange and unit of account.
Use this protocol to borrow MOD: an over-collateralized stablecoin backed by decentralized, yield-bearing assets.
MOD is an over-collateralized, guaranteed return stablecoin backed by a basket of on-chain assets. Its diversified collateral base of liquid derivatives, liquidity pool tokens, depository receipt tokens and RWAs ensures its decentralized and censorship-resistant nature without compromising capital efficiency.