What Is THORChain? Part 2

4 min

THORChain is a cross-chain blockchain tech that offers swapping with native crypto tokens. We answer 4 well known questions about THORChain. This is Part 2 of our articles about THORChain. Here’s a link to Part 1.

So, let’s dive in and see what needs offer.

When Was THORChain Launched?

The initial THORChain team got together back in 2018. They took part in a Binance  exchange Dexathon. So, this developed in what we now know as THORChain. In July 2019, they organized an IDO and managed to raise $1.5 million. 

They likewise launched their 1st DEX in July 2019 on the BNB chain. This was BEPswap. Here you can swap all possible BEP2 crypto tokens. In April 2021, they launched the multichain chaosnet. This allowed for cross-chain in the middle of a handful of blockchains tech. For instance, Bitcoin, Ethereum (ETH), and Litecoin. Nonetheless, this saw no less than 3 back-to-back hacks in July 2021. The attackers netted $13 million.

Nonetheless, THORChain bounced back. They managed to sort out all bugs, code, and security issues. This resulted in being back in full force by October 2021. At present, they support eight blockchains tech with cross-chain options.

What Is the THORChain Coin?

THORChain has its native coin, the RUNE crypto token. They use it in each pair in their pools. Shortly, I will explain how their pools work. Meanwhile,  each pool has a 1:1 ratio with RUNE. So, a pool with $10,000 in ETH will likewise need $10,000 worth of RUNE.

The initial supply was 1 Billion crypto tokens, but in October 2019, they burned 50 percent of the max supply. In other words, at present there is a max supply of 500 Million RUNE tokens.

There are 3 use cases for the RUNE token.

  1. Security — All node operators needs twice as several RUNE as the number of staked RUNE. This bonded RUNE makes sure that the node operators act in the best interest of the network. It provides network security. In total, the network needs 3 times the amount of RUNE compared to non-RUNE assets locked. 1:1 in the pools and 2:1 bonded by the node operators. 
  2. Governance — If you hold RUNE, you can vote on decisions. These influence the direction of the network. For example, which investment or chain to prioritize.
  3. Incentives — Both providers and node operators receive block bonus in RUNE. They likewise receive swap fees in RUNE as bonus. Furthermore, you can pay gas fees in RUNE. 

The current price is $1.17 with a market capitalization of $352 Million. Out of the 500 Million max supply of RUNE, 300.7 Million circulate already. Below is a picture of the 30-day RUNE price chart.

What Is THORChain? Part 2

Source: CoinGecko

Where to Buy the THORChain Coin?

The RUNE crypto token is available on all major CEXs For example, Binance, Gate.io, KuCoin, Crypto.com, or Kraken. The THORWallet DEX has plenty of RUNE pairs on offer. 

There are likewise plenty of smaller CEXs who offer the RUNE crypto token. For instance, Bitazza and in and Singapore. In Indonesia, TokoCrypto offers RUNE.

How Does THORChain work?

THORChain works different compared to other cross-chain protocols. The most significant is that there’s no need to wrap assets before you swap them. This sets THORChain apart from other protocols.  It makes them unique. They use native crypto tokens or assets. This gives autonomous and swaps.

Here’s a sample of how a swap works on THORChain. For this sample, we swap Bitcoin to ETH. So, Bitcoin arrives at the THORChain network and goes to a RUNE/ Bitcoin pool. Here, Bitcoin swap to RUNE. Now this RUNE goes to a RUNE/ETH pool. Here, the RUNE swaps to ETH. The swapper now receives ETH from a THORChain vault. As you can see, there’s no need to wrap anything. All swaps happen with native tokens.

There are four different users in the ecosystem.

  1. Swappers — They swap assets in liquidity pools.
  2. Liquidity providers — They earn bonus by liquidity to pools.
  3. Node operators — They bond RUNE and receive bonus for securing the network.
  4. Traders — There are arbitrageurs who watch and balance the pools. When they observe price differences in the middle of exchanges, they can make a profit. They regulate the prices naturally. Consequently, THORChain doesn’t need oracles.

So, THORChain is the vault manager. As such, they keep an eye out on all deposits and withdrawals. To price assets, they use the pool ratios.

⬆For more digital currency news, check out the  Crypto Altcoin Buzz YouTube channel.

⬆ Check out our most up-to-date research, non-fungible token(NFT)  and Metaverse network buy, and how to protect your portfolio in this market by checking out our  Altcoin Buzz Access group. And for a limited time, it’s FREE. Just click the link and try it today.

The post What Is THORChain? Part 2 appeared 1st on Crypto Altcoin Buzz.

Continue reading on Altcoinbuzz.io

Disclaimer: This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Share via
Share via
Send this to a friend