What is Thala Protocol – Seamless Borrowing and Efficient Liquidity Provisioning (THL)

Thala Protocol is a decentralized finance (DeFi) protocol that operates on the Aptos blockchain. At the heart of the protocol are two primary products: Move Dollar and Thala Swap.

Essential information for their token is available on the MEXC Digital asset introduction page. Furthermore, we are listing (THL/USDT – Trade it here) on the Innovation Zone! Check it out now!

What is Thala Protocol - Seamless Borrowing and Efficient Liquidity Provisioning (THL)
What is Thala Protocol – Seamless Borrowing and Efficient Liquidity Provisioning (THL)

How Does Move Dollar Work on Thala Protocol?

Move Dollar or MOD, serves as an Aptos-native stablecoin within the Thala ecosystem. It facilitates transactions, interactions with various DeFi protocols, and acts as a store of value, a medium of exchange, and a unit of account. MOD is designed as an over-collateralized stablecoin, generating yield and backed by a basket of on-chain assets. Meanwhile, its collateral base includes liquid staked derivatives, liquidity pool tokens, deposit receipt tokens, and RWAs. This ensures decentralization and resistance to censorship while maintaining capital efficiency.

The design of MOD ensures that it consistently maintains a peg of $1:

  • Users can only mint (or “borrow”) stablecoins up to a value less than that of the collateral. This ensures that the system’s collateral value always exceeds the stablecoin value in circulation.
  • Furthermore, holders of MOD have the option to redeem MOD for $1 (after deducting a redemption fee) worth of collateral. This establishes an effective price floor of $1.
  • In cases where the collateralization of a user’s vault drops below a safe threshold for backing MOD, a liquidation process is triggered.

Thala’s protocol parameters are structured to maintain MOD’s over-collateralization at all times, with additional mechanisms in place to reinforce a robust peg.

Introduction to Thalaswap

Thalaswap is Thala Protocol’s native, next-generation Automated Market Maker (AMM). It aspires to serve as the central liquidity layer for Aptos while ensuring deep liquidity for MOD across the Aptos ecosystem.

The DEX offers users three distinct pool types:

Weighted Pools

Weighted Pools execute token swaps by enforcing a Constant Weighted Product invariant. It employs Weighted Math, making it suitable for a wide range of use cases. Furthermore, it includes pairings without inherent price correlation such as APT-MOD. Unlike traditional AMMs limited to 50/50 weightings, weighted pools allow users to create pools with varying token counts and weightings, such as 80/20 or 60/20/20. Additionally, the creation of weighted pools is permissionless.

Stable Pools

Traditional AMM pools are effective for less commonly traded assets. However, they are less efficient when trading assets that typically maintain parity with one another. Therefore, Stable pools are designed for tokens pegged to a specific value, synthetics like liquid-staking derivatives, or assets correlated with another. These assets may include stablecoins, synthetic or wrapped tokens, and staked derivatives (e.g., staked Aptos and Aptos). Stable pools enable the exchange of assets that converge towards a value of “1” relative to each other, with minimal price impact and low fees.

Liquidity Bootstrapping Pools (LBPs)

Liquidity Bootstrapping Pools (LBPs) represent a pool type that allows for dynamic weightings of pooled assets. The pool creator sets the starting and end weights, as well as the duration for transitioning between weights, according to their discretion.

Use Cases of THL Tokens

THL is the native token of the Thala Protocol. It serves as a transferable representation of attributed governance and utility functions in the Thala ecosystem. It is also specifically designed to function solely as an interoperable utility token.

THL operates as a functional multi-utility token, serving as the economic incentive distributed to motivate users to actively contribute and participate in the Thala ecosystem. This approach fosters a mutually beneficial system where every participant receives fair compensation for their contributions.

THL plays an integral and indispensable role within Thala. Without THL, there would be no incentive for users to allocate resources toward participating in ecosystem activities or providing services for the benefit of the entire Thala ecosystem.

Notably, additional THL is awarded to users based solely on their actual usage, activity, and efforts within the Thala ecosystem, or in proportion to the frequency and volume of transactions. Users who do not actively participate will not receive THL incentives.

Where to buy THL Token

You can find THL Tokens here at MEXC! We are listing THL/USDT in our Innovation Zone! Furthermore, you can receive 100% spot trading fee discounts while holding MX tokens. Get yours now!

What is the Price of THL Tokens?

The THL Token is currently trading at MEXC with a live price of $2.28. You can check the live price of their token right here!

How to buy THL Tokens on MEXC

You can buy THL Tokens on MEXC by following the steps:

  1. Log in to your MEXC account. Click on [Spot].
  2. Search “THL” using the search bar to see the available trading pairs. Take THL/USDT as an example.
  3. Scroll down and go to the [Spot] box. Enter the amount of THL you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy THL] to confirm your order. You will find the purchased THL in your Spot Wallet.

You can find a detailed guide on how to buy THL Tokens here.

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Meanwhile, check out all of the listings in the Innovation and Assessment zones as well as the major tokens in the Main Zone – we have more amazing projects to come! Visit the Hot Projects section as well to uncover more featured popular tokens. Lastly, feel free to visit MEXC Academy to learn more about cryptocurrency!

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