Market making
A user reaches Thales as a market creator if the user initiates a brand new market by depositing sUSD and mints an equivalent number of sLONG and sSHORT options position tokens, the will earn a percentage of the total pool size (open interest).
A market creator cannot just mint one side of a market. A maker creator can only mint sLONG and sSHORT tokens at the same time.
In the current implementation of the Thales protocol when a market makers increases the pool size of an existing pool there is a 0.5% fee of the sUSD amount that goes to the market creator and there is a 0.5% protocol fee for ThalesDAO.
The only difference between the market maker and market creator from a technical side is the market creator started the pool first. Both creators and makers always mint both types of tokens.
The list of all supported synth price feeds can be found here:
A user who reaches Thales and mints options is a market maker if the user deposits additional sUSD into an existing market and mints new options. By depositing sUSD, the user grows the pool.
The total size of a market is determined by how many sUSD are deposited into a pool.
Any price supported by the Thales adopts the 0x offchain orderbook, onchain settlement model for transactions on Ethereum.
For any options market, there is one orderbook for short tokens and one orderbook for long tokens. At the expiry date of a market, either the short or long tokens will be worth 1 sUSD but never both.
If the price of the Chainlink price feed called at the time of market expiry is greater than or equal to the strike price, the long tokens will have a claim to all of the sUSD locked in the pool.
Last modified 3mo ago
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