We’re excited to announce that Thala Liquid Staking is now live on Aptos mainnet!
On Aptos, over 866 million APT (~81% of the total APT) are staked across 116+ validators. However, only 0.4% (~$28 million) of this figure is actively staked with liquid staking protocols–leading to negligible value capture for the broader DeFi ecosystem. With a lack of native assets in the nascent ecosystem, LSDs can serve as an effective means of bootstrapping liquidity and creating new use-cases for protocols.
Thala’s liquid staking derivative follows a two token model, including thAPT and sthAPT. thAPT is a non-rebasing deposit receipt that is pegged to APT at a 1:1 ratio, whereas sthAPT is a rebasing deposit receipt that grows as validator rewards accrue over time.
While the aggregate validator rewards are generated by the total supply of Thala’s LSD (thAPT + sthAPT), the rewards are primarily distributed to holders of sthAPT. This means that, in the case of sthAPT, its rewards are: 100% validator rewards from sthAPT + 80% of thAPT validator rewards. The remaining 20% of thAPT validator rewards are directed to incentivize the thAPT-APT stable pool on ThalaSwap. This ensures that sthAPT holders receive superior yields compared to all existing alternatives, whether that be other liquid staking protocols or validators. Please note that, to earn the full extent of staking rewards, users must deposit APT to mint thAPT, then stake thAPT for sthAPT.
In order to bootstrap ample liquidity for thAPT, Thala will be reducing Stability Pool emissions by 28% starting from the concurrent epoch, and redirect the excess to accommodate the thAPT-APT pair. In its bootstrapping stage, the Thala protocol will charge 0% commission on validator fees — ensuring that thAPT can become the highest yielding staking solution across the Aptos ecosystem. Audit results by Ottersec can be found in the protocol documentation.
We’re excited to expand Thala’s product suite to the liquid staking vertical — expect more updates in the coming weeks on new liquid staking integrations, partnerships, and more!
Thala is a decentralized finance protocol powered by the Move language, enabling seamless borrowing of a decentralized, over-collateralized stablecoin in Move Dollar and capital-efficient liquidity provisioning via a rebalancing AMM on the Aptos blockchain.
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