**What Is THORChain’s Upcoming Lending Model?**
– THORChain is a decentralized cross-chain liquidity protocol that enables seamless asset swaps across various blockchain networks.
– THORChain’s key features include direct asset exchange across multiple chains, no user registration, and transparent and equitable pricing.
– The native token of THORChain is $RUNE, which plays a crucial role in upholding the ecosystem and is used for transaction fees and governance.
– THORChain aims to establish a unified and liquid decentralized network that addresses the challenges faced by cryptocurrency exchanges.
– THORChain’s upcoming lending model offers zero expiry, zero liquidity, and zero interest loans, with collateralization determined by the market.
**How Will THORChain Lending Work?**
– THORChain’s lending model does not require over-collateralization and uses TOR, a stablecoin, to denominate the debt.
– Borrowers deposit collateral and acquire debt at a collateralization ratio determined by the market.
– Loans can be repaid at any time and in any supported asset, with all repayments automatically converted into TOR.
– Assets for borrowing are sourced through swapping $RUNE with the borrowed asset via liquidity pools.
– The collateral is swapped for $RUNE through the pools, and no single entity “holds” the collateral.
**What are the Risks and Benefits of THORChain’s Lending Model?**
– Risks include excessive minting of $RUNE, smart contract vulnerabilities, regulatory uncertainties, and market volatility.
– The benefits of THORChain’s lending model include no-liquidation design, value distribution to $RUNE holders, and the ability to borrow against L1 bluechips.
**Hot Take:**
THORChain’s upcoming lending model has the potential to revolutionize the crypto lending landscape with its unique features and decentralized approach. By offering zero expiry, zero liquidity, and zero interest loans, THORChain aims to provide stability and inclusivity to borrowers. However, the model also poses risks such as excessive minting of $RUNE and smart contract vulnerabilities. It will be interesting to see how THORChain addresses these risks and if the lending model can forge a new paradigm in the crypto lending space.
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