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.

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Derivative exchanges

Thales

# Thales Token incentives Methodology

## 1. Overview

Token incentives measures the total value of THALES tokens distributed as rewards to participants in the Thales protocol ecosystem on a daily basis. This metric captures both liquidity provider rewards and staking rewards, providing insight into the protocol's token distribution mechanisms and user incentive programs. The calculation aggregates reward payment events from Optimism smart contracts and converts them to USD values for standardized reporting.

## 2. Data sources

- **Optimism smart contract events**: Parsed `RewardPaid` events from the LPStakingRewards contract and `RewardsClaimed` events from the StakingThales contract
- **Token metadata**: THALES token contract information including decimal precision
- **End-of-day price feeds**: THALES token prices for USD conversion
- **Chain availability data**: Optimism network operational status for filtering

## 3. Step-by-step calculation

### Component A: Liquidity provider rewards extraction
- **Purpose**: Captures THALES token rewards distributed to liquidity providers
- **Logic**: Extracts `RewardPaid` events emitted by the LPStakingRewards contract on Optimism. Each event represents a reward payment to a liquidity provider and contains the recipient address and reward amount. Events are filtered to include block timestamp, transaction hash, log index for uniqueness, and the `reward` field containing the raw token amount. All events are classified under the options trading business line within the derivatives market sector.
- **Key fields**: `reward` amount converted to `amount`, recipient `address` mapped to `account_address`, event `block_timestamp` for timing

### Component B: Staking rewards extraction  
- **Purpose**: Captures THALES token rewards claimed by protocol stakers
- **Logic**: Extracts `RewardsClaimed` events emitted by the StakingThales contract on Optimism. Each event represents a reward claim by a staker and contains the claimant address and reward amount. Events are filtered to include block timestamp, transaction hash, log index for deduplication, and the `baseRewards` field containing the raw token amount. All events are classified under the same business categorization as liquidity provider rewards.
- **Key fields**: `baseRewards` amount converted to `amount`, claimant `address` mapped to `account_address`, event `block_timestamp` for timing

### Component C: Event standardization
- **Purpose**: Combines and standardizes reward events from both contract types
- **Logic**: Unions the liquidity provider and staking reward events into a single dataset. Both event types are mapped to a common schema with standardized business line classification as 'Options trading', market sector as 'derivatives', and business segment as 'option'. The THALES token contract address is hardcoded as the reward token. Version is set to 'v1' and product identifier is left null for all records.
- **Key fields**: Unified `amount` field containing raw token amounts, standardized `token_address` field, consistent business classification fields

### Component D: Daily time aggregation
- **Purpose**: Groups reward events by daily time periods
- **Logic**: Truncates block timestamps to daily boundaries using day-level time bucketing. All events occurring within the same calendar day are grouped together. The timestamp grain is set to 'day' to indicate daily aggregation level. Chain identifier is preserved as 'optimism' to maintain network attribution.
- **Key fields**: `timestamp` truncated to day precision, `timestamp_grain` set to 'day'

### Component E: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to standardized USD values
- **Logic**: Applies the convert to USD and correct decimals macro to transform raw token amounts from blockchain events into human-readable USD values. The macro retrieves THALES token prices from end-of-day price feeds and applies the appropriate decimal conversion based on the token's decimal precision. Both decimal correction and USD conversion are enabled to ensure accurate value representation.
- **Key fields**: `token_incentives` field converted from raw amounts to USD values with proper decimal adjustment

### Final aggregation
- **Combining components**: The standardized, time-bucketed, and USD-converted reward data flows through the finalize metric token incentives macro which applies schema validation, ensures proper business logic rules, and handles any data gaps
- **Currency conversion**: Raw THALES token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to account for the token's 18-decimal precision
- **Time aggregation**: Events are aggregated at daily boundaries with timestamp truncation to day precision
- **Final calculation**: The final metric value represents the total USD value of THALES tokens distributed as incentives on each day, combining both liquidity provider rewards and staking rewards. Gap filling with zero values ensures complete daily coverage. Chain availability filtering ensures only data from operational network periods is included.

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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