Why use Thales?
The key advantages of using Thales are that nobody can stop you from interacting with the Thales smart contracts, and you do not have to rely on a third-party to custody your funds. The Thales team has only built the software for these systems to run, but the Thales team will never touch user funds.
A key selling point is the Thales smart contracts only consume uncensorable, decentralized stablecoins as inputs, the sUSD. The only way to participate in trading or minting of binary options on Thales is with sUSD, the flagship decentralized stablecoin of the Synthetix ecosystem.
In this way, Thales offers traders around the world the chance to bet on their beliefs about crypto prices. If a trader thinks the price of Ether will go much higher, the trader will be interested in long binary options on Ether.
There are two main user types for Thales. The first are punters, speculators, and people who want to take a chance on crypto prices. The second are people who make the market for these users to pick their bets.
Binary options are a product retail users are interested in because of the intuitive model. If Jim buys a long option on the price of Bitcoin being greater than $100,000 by the end of the year, and the price of Bitcoin at the end of the year is $110,000, then Jim earns 1 sUSD for each long option he owns. Binary options offer fixed payouts, providing certainty about what will happen if Jim is correct on his Bitcoin price prediction.
The market makers on Thales order books are there for a couple reasons. The first is that a market creator earns 0.5% of the total pool size in sUSD. This creates an incentive for market creators to build and potentially market on their own specific binary options markets the market creator thinks will attract significant popularity. A market creator earns 5,000 sUSD for every 1 million sUSD in a pool.
The Thales core contributors plan to introduce retrospective incentives for early Thales supporters who are actively creating markets.