Proposal Details
Elevator Pitch: The Theia Protocol is a new model for crowdfunding Web 3.0 providing instantaneous liquidity to investors without the need for 3rd party LPs like on Uniswap. Think ICOs 2.0
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Effectively what this algorithm achieves is creating liquidity and efficient price discovery in illiquid markets (I.e. the early stages of a startup).
The current ways to price assets:
Order Book exchanges -> Only become effecient at liquidity and price discovery when trade volume is high. In the early stages of projects trade volume is extremely unlikely to be big
Liquidity Pool AMMs used in DEXs like Uniswap -> Only become efficient at price discovery and trading when there is deep liquidity, again a feature which is unlikely to be present in early stages of projects.
(Just take Squid Token for example, before it was rugged it’s hypothetical market cap was $2 trillion, the size of the whole crypto market combined, with only $2-3 million inside the liquidity pool. How can something be valued at such a high level with so little liquidity?)
