What is THORChain (RUNE)?
THORChain is a layer-1 protocol that allows users to transfer cryptocurrencies between blockchains instantly. Essentially, it enables users to trade crypto assets across various blockchains in a completely decentralized way.
The THORChain project was founded in 2018 under the premise that using centralized exchanges to transfer crypto-assets between different blockchains had existing problems. Thus, THORChain’s team envisioned an independent blockchain that could bridge to external networks and thus facilitate cross-chain transfers, in a similar way to DEXs work.
At its launch, Thorchain supported assets from Bitcoin, Ethereum, Bitcoin Cash, Binance Smart Chain, and Litecoin, and has continually been expanding for other tokens and assets since.
What are THORChain’s key features and how does it work?
It uses an automated market maker (AMM) model similar to that of Uniswap. THORChain’s native token RUNE acts as the base pair for swaps. Thorchain deploys an adapted lending system of Bancor’s continuous lending pools to facilitate trades. In these trades, all assets are deposited in liquidity pools shared with one other asset, which is Thorchain’s native token, RUNE.
RUNE is swapped against other assets in all trades. For example, if a user is swapping asset A to asset B, the protocol would conduct two trades. First, it would swap asset A for RUNE, and then RUNE for B. RUNE double swapping is what allows for decentralized swapping of assets across chains non-custodial.
THORChain uses a proof-of-stake consensus mechanism, which means node operators earn RUNE tokens for securing the network and validating swaps. Traders can earn a percentage of trading fees when they stake their assets and provide liquidity, thus becoming liquidity providers RUNE is a utility token used for governance, staking, bonding, rewards, and trading.
Staking RUNE also gives users votes on governance proposals.
THORChain is a decentralized liquidity protocol that allows users to easily exchange cryptocurrency assets across a range of networks including Bitcoin and Ethereum without losing full custody of their assets in the process.With THORChain, users can simply swap one asset for another in a permissionless setting, without needing to rely on order books to source liquidity. Instead, market prices are maintained through the ratio of assets in a pool (see automated market maker).The native utility token of the THORChain platform is RUNE. This is used as the base currency in the THORChain ecosystem and is also used for platform governance and security as part of THORChain's Sybil resistance mechanisms — since THORChain nodes must commit a minimum of 300k RUNE to participate in its rotating consensus process.THORChain was funded through an initial DEX offering (IDO) which launched through the Binance DEX in July 2019. Its single-chain chaosnet launched in April 2021, the multi-chain upgrade was launched in April 2021 and Mainnet is now live as of Jun 2022.. THORChain enables native asset settlement, allowing users to swap Bitcoin, Ether, Stablecoins, and other coins across 9 distinct blockchains. THORChain does not wrap or peg assets, instead it allows value to be exchanged from one coin on one blockchain to another coin on another chain.THORChain uses a unique system to help mitigate the issue of