SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: padzank | Thales
Project Name: Thales Protocol
Thales Protocol provides a novel, fully onchain and permissionless Liquidity and AMM solution for any type of Exclusive Outcome Markets
Limited only by availability of onchain data oracles, Thales can be the engine behind any type of Exclusive Outcome marketplace (Digital Options, Sports Markets etc.)
With specialized AMM architecture for various derivatives, Thales successfully solved onchain market making and guaranteed collateralization while minimizing toxic flow and bolstering unprecedented capital efficiency of the liquidity pool.
Team Members and Qualifications:
Danijel - Co-founder and tech lead. More than a decade of developer experience and corporate software engineering. Early Synthetix protocol guardian role.
Vladan - Full stack senior developer.
Gorstak - frontend lead
padzank - Strategy Lead and Business Development
Red - Marketing and Growth
… +19 other Core Contributors with the roles of developers, growth team, analytics, marketing and design
Github: Thales · GitHub
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 500,000 ARB
Grant Matching: 200,000 THALES
Incentive program duration to last until the funds are depleted, part of total weekly emissions will depend on the usage of the products
Breakdown of the emissions and incentives is as following:
- 10,000 ARB per week for 14 weeks as Direct Usage Incentives. These include global Trading Volume Incentives and Incentives for Discount Buyers that balance the AMM risk
- 20,000 ARB cap per week as Fee Rebates across Thales Products (ThalesAMM, SportsAMM and SpeedMarketsAMM) for a minimum of 10 weeks. The most effective and efficient incentive program, that rebates the protocol and LP fees to traders, incentivising them to feel more comfortable trading and globally get better pricing for their trades, without the risk of the program being gamed.
- 160,000 ARB for Focused Event Incentives such as: Trading Competitions, Incentives focused on trading activity of certain groups of markets such as Sports Tournaments and Playoffs, Parlay Leaderboards and Community Activity Campaigns
Funding Address: 0x2902E381c9Caacd17d25a2e008db0a9a4687FDBF
Funding Address Characteristics: Thales Protocol Arbitrum Treasury SAFE with 3/7 signature setup
Contract Address: Contracts and methods of distribution will be known and available in case of Grant approval.
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
Objective of this receiving grant will be to focus the growth of the products built on the Thales protocol to the Arbitrum Network via providing the best trading and participating environment due to sustainable ARB and THALES token incentives and rebates. With received Optimism grants giving us the experience on how grant incentives can provide sustainable growth and user retention to a specific network, we wish to see Arbitrum instances of Thales products reach the same KPIs and be on-par with other network deployments.
Key Performance Indicators (KPIs): Key performance indicators to look out for to gauge growth of Thales products on Arbitrum would be the overall increase in Daily Active Users and Daily Volume using the Arbitrum deployments of ThalesAMM, SportsAMM and the SpeedMarketsAMM.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
With Thales products being easy-to-understand, simple and fun, they are a perfect onboarding tool for a wider demographic of users who are not exclusively crypto native. Arbitrum ecosystem has the opportunity to, via supporting the growth of Thales on Arbitrum, increase the adoption of the network itself. With advancements of account abstraction infrastructure and simplicity of Thales products, it is a perfect onboarding tool for supporting networks such as Arbitrum.
Additionally, with Thales having stronger growth metrics on competing L2 network due to a deployment head start and receiving competing network grants, this ARB grant has the potential to incentivize better growth of the Arbitrum deployment. It can move unique users over to Arbitrum over more lucrative conditions and showcase how an Arbitrum deployment can have better growth metrics compared to other L2 deployments of the same product.
Justification for the size of the grant:
Size of the grant is on par with our previous experiences of balancing responsible and fair expenditure of incentives while maintaining the uptrend of relevant growth metrics retained even when incentives are depleted. With the planned duration of the incentive programs, 500,000 ARB tokens are the perfect middle ground required to reach our goals and maintain long term adoption levels of Thales Arbitrum deployments.
Execution strategies will use our developed offchain scripts and leaderboards to weekly snapshot fee rebates data, volume incentives distributions, competition results and direct campaign rewards. This collected data will be used in weekly direct airdrops of ARB and THALES rewards to eligible users.
Grant is set to be distributed on a weekly basis starting from approximate time of receiving funds in November up until January 31st.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes
SECTION 4: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?:
Thales Protocol has no native network but is a multichain project.
On what other networks is the protocol deployed?:
Thales Protocol products have a full suite of deployments on Optimism, Arbitrum and Base while it has limited deployments on Polygon and ZkSync.
What date did you deploy on Arbitrum?:
5 novel AMMs live in production: ThalesAMM, RangedAMM, SportsAMM, ParlayAMM and SpeedMarketsAMM
$39M Total Buy Volume driven across products
~ 24,000 Unique Users across products
- ThalesAMM - Novel Automated Market Maker contract that market makes the ERC20 Positional Tokens (UP and DOWN ERC20 tokens) by pricing them via implied probability algorithm. These UP and DOWN tokens represent potential results of Digital Options of various crypto and non-crypto assets supported by the Thales Marketplace. The ThalesAMM architecture combined with dedicated Positional Markets contracts that collateralize and mint positions, revolutionized market making of onchain exclusive outcome markets.
- RangedAMM - Built on top of the ThalesAMM, RangedAMM uses similar architecture to market make Digital Options of price ranges (IN or OUT ERC20 positions) instead of price directions.
- SportsAMM - Automated Market Maker based on ThalesAMM architecture, that market makes onchain Sports Markets that are priced via Chainlink provided pre-game odds and resolved via Chainlink provided post-game results. By using the similar collateralization and market making architecture that is behind the Thales Marketplace, the SportsAMM is the world’s first successful Sports Markets engine that managed to minimize toxic flow and bolster unprecedented capital efficiency while ensuring a constant 100% collateralization thanks to the foundational Thales architecture.
- ParlayAMM - Automated Market Maker built on top of the SportsAMM, that market makes and collateralizes combinations of individual SportsAMM positions. This allows users to place fully onchain leveraged sports positions while keeping the same 100% collateralization and efficiency of the SportsAMM contract.
- SpeedMarketsAMM - Newest addition to the Thales products portfolio, SpeedMarketsAMM is the engine behind the Thales Speed Markets that allow users to place simple and quick positions on in what direction will the price of chosen crypto asset finish within a custom intraday timeframe.
Thales Protocol next priority is implementing an Account Abstraction solutions that will allow frontends of Thales products to have a full Web2 experience while maintaining permissionlessness, non-custodial nature and decentralization. This will also allow onboarding users without prior crypto knowledge and developments of mobile apps driving on top of Thales smart contracts.
With the Thales smart contract architecture solidifying and maturing sufficiently, the next wave of growth and adoption comes from third party integrators. Thales is incentivizing, optimizing its architecture and streamlining documentation to fully support seamless integration of third party projects.
- Thales Parlay Market AMM Smart Contract Audit | iosiro
- Thales AMM Smart Contract Audit | iosiro
- Thales - CertiK Skynet Project Insight
- Thales Airdrop and Staking Smart Contract Audit | iosiro
- Thales Binary Option Market Smart Contract Audit | iosiro
SECTION 5: Data and Reporting
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, our team is prepared. We already have running Dune Dashboards showcasing our key metrics across relevant chains. We are also willing to adapt or create a new dashboard specialized in the Arbitrum Grant KPI metrics.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes, we agree to provide bi-weekly program updates.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes