Introducing THL Gated Emissions

Thala Labs
5 min readJan 15, 2024

TL;DR: Starting on January 17th, you must hold at least 2.5% of your LP position in veTHL to be eligible for esTHL emissions. The THL/MOD pool is exempt from this requirement.

In order to attract long-term liquidity and reward participants with THL tokens who align with the protocol’s success, we are introducing ‘Gated Emissions.’ Under this mechanism, users must hold 2.5% of their LP position in veTHL to be eligible for the emissions. However, in order to continually maintain deep THL liquidity on Thala — you won’t need to hold any veTHL to continue receiving THL/MOD emissions.

To simplify:

  1. Users who provide value to the protocol will unlock the ability to earn incentivized esTHL (escrowed Thala) emissions in addition to the pool APRs and other emissions such as APT.
  2. Users who simply deposit but don’t add value to the protocol will continue to earn natural market rates (APRs) through swap fees but won’t earn any THL emissions.

This implies that only a subset of users will be ‘eligible’ for emissions at any given time based on the value they provide to the protocol. To be eligible for emissions, users must provide a minimum of 2.5% of locked LP tokens (veTHL) relative to the size of their LP position (in USD terms) to the protocol in order to unlock THL emissions.

[veTHL balance * THL price] must be > 2.5% of your LP position size. And note that veTHL balance = [THL locked / weeks locked]

Let’s take an example: if you have $1 million deposited in the MOD-USDC stable pool (500,000 MOD paired with 500,000 USDC), you must hold an equivalent to at least $25k in value from (veTHL balance * THL price). In this situation, with the current price of THL at $0.80 — you could have 31,250 THL locked for a year and be eligible for emissions. An alternate case could be having 62,500 THL locked for 6 months. If you have, let’s say, only a $20k value of veTHL, you would NOT earn incentivized emissions, as it falls below the 2.5% threshold.

What does it imply for the Thala Ecosystem?

This change means that eligible users will receive meaningfully higher emissions, assuming the same number of THL is emitted. Essentially, this requires LPs to contribute a specified proportion of liquidity, which can boost THL’s demand and increase its locked-up volume, thereby enhancing its overall liquidity. We believe that this could eventually lead to an interesting feedback loop, helping to attract long-term liquidity and rewarding those most aligned with the long-term success of the protocol.

In summary, this will lead to:

  1. A higher barrier to entry for earning emissions and achieving sustainable Real Yields.
  2. Sustainable Tokenomics — Reduced Inflation and Emissions.

About Thala:

Thala is a decentralized finance protocol powered by the Move language, enabling seamless borrowing of a decentralized, over-collateralized stablecoin, Move Dollar, and capital-efficient liquidity provisioning via a rebalancing AMM on the Aptos blockchain.

Website: http://thala.fi/

Foundry: https://thalalabs.typeform.com/foundry

Discord: https://discord.gg/thala

Twitter: http://twitter.com/thalalabs

Documentation: https://docs.thala.fi

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Thala Labs

Thala is a decentralized finance protocol on the Aptos blockchain.