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| Website | thorchain.org | Whitepaper | medium.com | ||
| Explorers | Binance | ||||
| Wallets | Ledger | Xdefi | Coin98 | Trust Wallet | |
| Community | Telegram | Discord | |||
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| Source Code | Github |
Description
What is ThorChain
ThorChain is a decentralized liquidity network with an interoperable blockchain that allows cross-chain token swaps in a non-custodial manner. It does not peg or wrap assets, but simply allows users to swap tokens across various Layer 1 blockchains. So, traders on ThorChain can seamlessly move from Bitcoin to Ethereum, to Polkadot and etc. without having to register for an exchange or go through KYC, like on CEXs. Hence, users are minimally exposed to custody and counterparty risks.
What is RUNE
ThorChain’s consensus is proof-of-stake and built on Tendermint (Cosmos), with network validators (nodes) required to bond their native token, RUNE. RUNE has a token model that increases in value as the utilization of the network grows. This means that the more liquidity is deposited into ThorChain liquidity pools, the more valuable RUNE gets.
RUNE is needed for two fundamental reasons:
(i) In liquidity pools, it acts as a base pair so a 1:1 ratio of ASSET:RUNE is required (e.g. BNB.RUNE, ETH.RUNE). This is because ThorChain does not actually operate by direct asset transfer, it needs RUNE to move from one asset into another and to activate ThorChain’s Bifrost Protocol. This protocol is the bridge that enables multichain connectivity within ThorChain and requires RUNE to operate.
(ii) RUNE is bonded as collateral by nodes for security sake following a 2:1 bond:stake ratio. Thus, RUNE is not intended to be a governance token. ThorChain will be governed more like Bitcoin, where nodes running can determine what direction it takes. This also means that ThorChain is not only limited to traders looking to trade spot tokens. It is also intended to be used by liquidity providers and node operators.
Therefore, with a 2:1 bond:stake ratio, combined with the 1:1 pool stake ratio, the amount of RUNE needed in the work is thus three times the amount of the non-RUNE assets locked. This 3:1 ratio is just the minimum value of RUNE.
RUNE serves these five purposes
1. Liquidity: as a settlement asset
2. Security: As a sybil-resistant security measure and a mean for driving economic behaviour
3. Governance: To signal priority on-chain
4. Incentive: as part of incentive mechanism, RUNE is used to pay out rewards, charge fees and subsidize gas
5. Amplifier: to elevate assets that are on ThorChain
Users who utilize ThorChain’s cross-chain services between the pools will need to pay fixed network fees as well as a variable slip fee. The fee is paid due to gas fees on external services and for fast execution. Besides offering a seamless service to traders, users can also become liquidity providers on ThorChain.
Liquidity providers on ThorChain can add liquidity to various pools, which are then tied to RUNE in a separate vault. The project’s Continuous Liquidity Pool (CLP) incentivises any ThorChain participant to supply liquidity in exchange for a reward. The CLP is one of the cornerstone concepts driving the project, mainly because it is an economic paradigm that is a solution to liquidity shortage issues faced by most exchanges. ThorChain’s CLP has its own on-chain and trustless ‘basket’ of liquidity and incentivising participation in filling it, which means that thorchain’s liquidity pool is a unique exchange environment that never requires a pairing of buyer and seller to transact. The Bifrost protocol also tracks the ratio of RUNE to the asset in the CLP.
How does ThorChain differ from others?
The attraction of ThorChain is that its chain-agnostic feature allows it to swap assets on a real basis. Unlike Ren, there is no wrapped BTC (e.g. renBTC) being created. Instead, we would be able to swap real ETH for real BTC. This is a milestone, as currently the closest Bitcoin is to DeFi is in its wrapped form. Thus, ThorChain brings BTC into DeFi.
Furthermore, as the network of new smart contract platforms grows (i.e. Solana and Polkadot), the number of chains is growing. The diversity of chains engenders the need for a trust-minimized and decentralized way to trade/swap tokens across chains, such as ThorChain. Currently, ThorChain is working on Polkadot, Solana, Monero, Cosmos (ATOM) and such, in anticipation of the launch of its mainnet.
So, what sets ThorChain apart is its cross-chain feature – which enables any asset to be swapped, and a pool created around it. This opens a whole new world of possibilities for DeFi users and its ecosystem alike. ThorChain has seen its popularity rise as it gained the attention of Multicoin Capital, where they announced that RUNE represents one of their largest public positions, because they believe that ThorChain plays an increasingly critical role within the crypto ecosystem. Currently, the multichain testnet is available and the mainnet is yet to be launched.
How to get RUNE?
You can obtain RUNE from Uniswap, or Binance. You can also find RUNE trading on various decentralized cryptocurrency exchanges.
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Max Price chart
THORChain price today is $9.45 with a 24-hour trading volume of $142,725,304. RUNE price is up 1.7% in the last 24 hours. It has a circulating supply of 300 Million RUNE coins and a total supply of 500 Million. If you are looking to buy or sell THORChain, HitBTC is currently the most active exchange.
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