THORChain (RUNE)
THORChain is a decentralized cross-chain liquidity protocol that facilitates the swapping of native assets across various blockchains without relying on wrapped or pegged assets. It was established in June 2018. RUNE is the native token of THORChain, enabling holders to participate in the network.
History
Founded on June 1, 2018, THORChain is a crypto-based finance and technology organization based in Switzerland and registered in Singapore. The protocol uses the Tendermint consensus engine, Cosmos-SDK state machine, and GG20 Threshold Signature Scheme (TSS). It functions as an independent Layer-1 cross-chain decentralized exchange (DEX) built on the Cosmos SDK, managing funds directly in on-chain vaults and securing them using economic measures.
Overview
| Ticker | RUNE |
| Category | Decentralized Exchange (DEX) |
| Website | https://thorchain.org/ |
| @thorchain | |
| Telegram | thorchain_org |
| https://www.reddit.com/r/thorchain | |
| Contract Addresses | |
|---|---|
| thorchain | |
On September 20, 2023, THORChain integrated with BNB Smart Chain, allowing users to provide liquidity and swap BNB and BEP-20 assets. Earlier, on August 21, 2023, lending was activated on THORChain, enabling users to lend BTC and ETH to the network and borrow USD-denominated debt without liquidations, interest, or expiration. On November 15, 2022, Savers Vaults launched, allowing users to supply single-asset liquidity and earn yield. Mainnet was achieved on June 23, 2022, marking the culmination of four years of development. Following this, Cosmos' ATOM trading went live for swaps and liquidity provision on July 28, 2022. THORName Service (THORNames) was launched on June 3, 2021, offering a distributed naming system for mapping human-readable names to machine-readable identifiers.
Technology
THORChain's technology relies on 1-way State Pegs, a State Machine, and the Threshold Signature Scheme (TSS) Protocol. These elements facilitate synchronization with external chains, coordinate asset exchange logic, and enable distributed threshold key-signing. The Bifröst Chain Client processes chain-specific transactions.
Roles
Liquidity providers
Liquidity providers contribute assets to THORChain's pools and are compensated with swap fees and system rewards. They gain exposure to underlying assets with free-floating market prices and earn yield in RUNE and the pool's connected asset.
Swappers
Swappers exchange digital assets across the network, benefiting from cross-chain compatibility and an effective user experience. They have access to various chains, including fast, smart, censorship-resistant, and private chains.
Traders
Traders monitor pools and engage in arbitrage, buying assets in low-priced markets and selling them in high-priced ones. They compare exchange rates between THORChain and external markets to capitalize on price differences.
Node operators
Node operators manage THORNodes, which service the THORChain network. They provide a bond and are compensated to ensure system security.
RUNE
RUNE is THORChain's native token, serving as a settlement asset and providing economic incentives for network security. It plays roles in liquidity, security, governance, and incentives.
Rune tokenomics
Initially, 1 billion RUNE tokens were pre-minted in 2018. In October 2019, THORChain burned unused reserve RUNE, reducing the supply to 500 million tokens. This supply reduction did not affect tokens already distributed to investors.
Distribution
RUNE distribution allocated 5% and 16% for SEED and IDO, respectively, 10% to developers, 24% to network bootstrapping participants, and 44% to nodes and liquidity providers over the next decade.
Incentive pendulum
The incentive pendulum keeps THORChain secure and efficient by adjusting reward distribution between nodes and liquidity providers. This system ensures participants are adequately rewarded and maintain network security.
Governance
THORChain governance involves minimal communication among nodes to ensure security. Governance decisions include asset listing, protocol upgrades, and determining economic limits for node participation.
Streaming swaps
Activated on July 26, 2023, streaming swaps allow users to split large transactions into sub-swaps for better price execution. This feature optimizes swaps for time or price, enhancing trading efficiency on the platform.
Partnerships
ThorChain x Trust Wallet
On December 14, 2022, THORChain integrated with Trust Wallet, enabling decentralized multichain swaps for over ten million active users. This partnership supports self-custody and transparency in decentralized finance.
ThorChain x Avalanche C-Chain
On October 4, 2022, Avalanche C-Chain native asset swaps were made available on THORChain, allowing users to swap assets without bridges. Users can also provide liquidity to THORChain pools and earn yield.
ThorChain x Edge Wallet
On September 26, 2022, Edge integrated THORChain as a swap provider, enabling decentralized cross-chain exchange. Edge also became an ecosystem wallet and exchange on THORChain.com.