Thales deposits liquidity into marketplaces and receive fees from traders (revenue). The funds collected are used to buyback and burn the THALES governance token.

Thales is a non-custodial exchange for parimutuel contracts built on Optimism, Arbitrum and Polygon. Thales was founded by Danijel Gornjakovic and was launched in December 2021.

THALES tokenholders own and govern the protocol. Thales’ investors include Framework Ventures, Apollo Capital, etc.

governance

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Derivative exchanges

Thales

# Thales Expenses Methodology

## 1. Overview

The Thales expenses metric measures the total USD value of token incentives paid by the Thales protocol to users, reclassified as operational expenses. This metric captures the cost of user acquisition and retention through token rewards distributed via liquidity provider staking rewards and base staking rewards on Optimism. The calculation aggregates daily token incentive payments, converts them to USD, and treats them as protocol expenses.

## 2. Data sources

- **Thales V1 Optimism events**: Parsed `LPStakingRewards_RewardPaid` and `StakingThales_RewardsClaimed` events from Thales V1 contracts on Optimism blockchain
- **Token metadata**: THALES token information including contract address and decimal configuration
- **End-of-day price feeds**: Daily THALES token price data for USD conversion

## 3. Step-by-step calculation

### Component A: Token incentive event extraction
- **Purpose**: Capture all THALES token rewards paid to users through the protocol's incentive programs
- **Logic**: Extract two types of reward events from Thales V1 on Optimism. First, collect `LPStakingRewards_RewardPaid` events that represent rewards paid to liquidity providers, capturing the `reward` parameter as the token amount. Second, collect `StakingThales_RewardsClaimed` events that represent base staking rewards, capturing the `baseRewards` parameter as the token amount. Both event types are standardized with consistent metadata including the recipient address, transaction details, and business classification as options trading in the derivatives sector
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `address` as recipient, `reward` and `baseRewards` as token amounts, and hardcoded THALES token address `0x217d47011b23bb961eb6d93ca9945b7501a5bb11`

### Component B: Daily aggregation and USD conversion
- **Purpose**: Aggregate token incentive amounts by day and convert to USD values
- **Logic**: Truncate event timestamps to daily boundaries and sum all token incentive amounts for each day. Apply USD conversion using end-of-day THALES token price feeds, with automatic decimal correction to account for the token's 18-decimal precision. The conversion ensures all amounts are properly scaled and denominated in USD
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the daily sum of token amounts, and converted USD values after price application and decimal correction

### Component C: Schema finalization and gap filling
- **Purpose**: Ensure consistent data schema and complete time series coverage
- **Logic**: Apply the token incentives finalization macro to validate business line classifications, ensure consistent schema structure, and implement a fill-zeros strategy for any missing days in the time series. This creates a complete daily series with zero values for days when no incentives were paid
- **Key fields**: Standardized schema with `timestamp`, `chain_id`, `product_id`, and `token_incentives` fields, with gaps filled using zero values

### Final aggregation
- **Combining components**: The finalized token incentives data is directly reclassified as expenses without additional processing
- **Currency conversion**: USD conversion occurs during the token incentives calculation using end-of-day THALES token prices with 18-decimal correction
- **Time aggregation**: Daily boundaries are established by truncating event timestamps to day level
- **Final calculation**: The expenses metric equals the daily USD value of token incentives paid, where expenses represent the protocol's cost of rewarding users through liquidity provider rewards and staking rewards programs

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

ThalesTHALES

Expenses

Expenses

Competitive landscape

Chain breakdown