Popular decentralized finance (DeFi) protocol Thala has partnered with TP protocol, a DeFi compostable LSD solution for stablecoin. Thala announced the development in a Twitter post on Tuesday. According to the announcement, the partnership is geared towards fostering users’ accessibility to DeFi yield bearing assets.
According to findings, Thala seeks to foster $MOD by bringing together, assets that are uncorrelated with one another as well as highly liquid and yield-bearing assets. Till this moment, the protocol is Aptos-native. However, the prevailing advancement in infrastructure bridging has encouraged Thala to consider harnessing the entire DeFi ecosystem for new assets to add as collateral.
Thala is optimistic about the potential of liquid staking derivatives
Thala is optimistic about the potential of liquid staking derivatives, particularly tAPT. According to the protocol, the liquid and yield-baring assets are remarkable additions to its network. It added that the derivatives are by definition, correlated to the movement of the major assets.
Worth noting that US short-term treasury bills are specifically 0-risk high-yielding assets and are liquid. This thus qualifies them as prime collateral assets for borrowing in a bid to lever up on the risk-free yield. Thala revealed that borrowing against treasury bill remains inaccessible to majority of brokerage customers owing to the high cost of traditional loan origination. According to findings, most businesses charge retail above the treasury bill yield rate to borrow against them.
Meanwhile, this development comes barely a few weeks after Thala Labs partnered with Hippo Labs. As revealed, the protocol’s partnership with Hippo Labs came into the limelight to enhance DeFi Trading Capabilities. According to the term of the agreement, Thala Labs Automated Market Maker(AMM) will be integrated into Hippo’s aggregator.
The collaboration fosters the integration of Hippo smart contract order routing into ThalaSwap, thereby fostering optimal trade routes. Furthermore, it paves the way for users of both protocols to trade with increased efficiency and deep liquidity.
Notably, Thala protocol completed its seed funding round in October, 2022, where its raised about $6million. In addition, the protocol also received a $100k grant after it was adopted into Google Cloud and Aptos Network accelerator program. On January 23, 2023, Thala launched its own ThalaSwap, an automated Market Maker(AMM).