The reliable open-source DeFi protocol where every user can be the boss
THORChain doesn’t have a particularly long history, it wasn’t even conceived of until 2018. It does offer a full range of exchange services, however, and its continuous liquidity pools are unique in the industry. Because THORChain is built as a cross-chain solution, swapping any asset using THORChain is possible, which is superior to other decentralized exchange offerings.
THORChain is a Decentralized Liquidity Network. It facilitates cross-chain liquidity pools with no pegged or wrapped tokens.
Source: Youtube
THORChain itself is a decentralized project with no company, no CEO & no founders. The project has always been open-source, transparent, auditable with a fluid team. There is no command & control structure and the community has always had the flexibility and freedom to influence the direction and make key decisions.
Several individuals & teams are now contributing to the project from an engineering perspective and actively driving THORChain's roadmap.
Accordingly, if you want to become involved you simply need to walk to the front of the bus and grab the steering wheel. Become an active participant, establish yourself as a capable engineer/leader, gather community support and there is no question you will be funded.
Don't ask "the team", ask the community, take charge, find devs, submit PR's, submit proposals, and exercise agency. Anything is possible. You're all part of the team.
Built on Tendermint, the Byzantine Fault Tolerant engine that powers Cosmos, THORChain is a Proof-of-Stake blockchain that includes network validators who are required to bond RUNE tokens. Validators can be punished for bad behaviour by slashing the bonded tokens, which acts as a disincentive toward misbehaviour. Network nodes are also used to create vaults and validate transactions.
THORChain offers the following breakthroughs:
Complete transparency on the liquidity and logic of the entire network at all times.
Distribution of risk across the 99 THORNodes.
Permissionless access to global liquidity.
Manipulation-resistant price feeds.
Deterministic always-on liquidity for all assets.
Shared incentives for all participants.
Non-custodial staking of assets.
On-chain swaps with no pegged tokens.
What is the value of RUNE?
RUNE has real value to the THORChain network. Its value is deterministic. Unlike many tokens in the cryptocurrency world, RUNE plays an integral part in the security and operation of the protocol. Tokens like YFI, UNI, and many others, have no intrinsic value outside the promise of 'governance' (being able to vote on changes to a protocol).
RUNE is the base asset pair for all pools, so a 1:1 ratio of RUNE: ASSET is required for staking. A pool with $100,000 in BTC will require $100,000 worth of RUNE. In addition, to provide network security, THORChain requires twice as many RUNE to be bonded by network operators as there is RUNE staked. This 2:1 bond: stake ratio, combined with the 1:1 pool stake ratio, means that the amount of RUNE needed in the network is three times the amount of the non-RUNE assets locked. If $1,000,000 worth of tokens are staked in THORChain, the market cap of RUNE will be at least $3,000,000. And like any token, stock, or asset in the world of finance, speculation around future value encourages additional upward price pressure. The 3:1 ratio is just the minimum value of RUNE.
What Prevents a SushiSwap-like Clone of THORChain?
THORChain is not just a smart contract
Over a hundred thousand lines of code.
Forking and rehosting the network is not easily feasible. Dozens of anonymous node operators work together to create a secure decentralized network.
THORChain "ruthlessly" incentivizes liquidity providers. It would be a massive challenge to design a system that can provide higher returns than THORChain.
Yield farms provide triple-digit returns by minting worthless tokens out of thin air, and returning them to LPs. THORChain provides large returns through slip-based fees and system rewards.
Nodes underpin all of THORChain’s services and they have three primary functions for the network:
Bonding RUNE
Create vaults
Produce blocks
A node administrator runs each node and they receive bond rewards for helping to maintain the network. The total they earn is two-thirds of all system income. Nodes are created every three days and have to compete with one another using bonded capital. To ensure the network remains fresh the older nodes are occasionally churned out of the system and replaced. Nodes benefit from being anonymous with plausible deniability on all transactions.
Essentially there are two groups in the THORChain ecosystem. The first are the users, and the others are the liquidity providers.
Users are the primary participants in the network who use the cross-chain services of THORChain to exchange tokens easily. Such exchanges are made between liquidity pools, with the user paying a slip fee to cover gas fees and execute the exchange. The swapping done by users is non-custodial and unrestricted.
The second group using THORChain are the liquidity providers who add liquidity to the various pools to power the exchange. This liquidity is bound using RUNE tokens and is then kept in separate vaults powered by the network nodes. By using a continuous liquidity pool in this way, THORChain avoids the need for external price feeds or oracles. Liquidity providers earn rewards through the slip fees charged to users.
The RUNE token is THORChain’s native token, and it, too, is a crucial part of the system. It is a BEP2 token used in all the liquidity pools and bonded by the nodes. Because RUNE tokens remain at a 1:1 ratio to asset value, all the liquidity pools can be linked. RUNE also serves as the reward token for the ecosystem.
Besides providing liquidity on-chain and staking rewards, RUNE provides the network security. This is accomplished through its incentive system, which offers potential malicious actors more incentive to provide liquidity than to corrupt the system since nodes earn two-thirds of the system income. That means all transactions carried out with RUNE receive larger rewards compared with liquidity providers. In addition, the nodes automatically close down whenever any malicious behaviour is detected.
The RUNE token serves four purposes within the THORChain ecosystem: Security, Liquidity, Governance, and Rewards.
Security – Validators stake RUNE tokens to secure the network. Nodes are required to bond RUNE tokens to have a chance at becoming one of the 100 validators. That bonding creates Sybil resistance within the network. Running a validator node requires 1 million RUNE as a bond.
Liquidity – In the liquidity pools every token is bonded to RUNE. This creates the necessary liquidity to perform swaps. By using RUNE to bond assets there are fewer connections needed between tokens.
Governance – Voting rights come from staked RUNE tokens, providing decentralized governance to the network.
Rewards – Validators and liquidity providers receive their rewards in the form of RUNE tokens.
RUNE can be purchased at these big exchanges:
1. Binance Exchange- you can purchase using your mobile phone or desktop. You only need to follow the steps as instructed. You can also receive a 25% discount on trading fees using Binance Coin (BNB) instead of cash. Use the link above for a bonus 10% discount.
2. Kraken Trade ThorChain and other cryptos and get 10% discount on trading fees.
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5. OKX, you can purchase cryptocurrencies using this link to sign up and get a 10% discount on trading fees.
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7. For the Aussies: Coinstash is an Australian crypto exchange based in Brisbane. New users can get $10 free on signup using this link
8. After you purchase of any cryptocurrencies, if you would like to store the coins in offline devices for safety, you can use Ledger
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