THORChain is a decentralized liquidity protocol designed to let users effortlessly trade cryptocurrencies across various networks like Bitcoin and Ethereum while keeping full control of their assets. It serves as cross-chain infrastructure for platforms such as Trust Wallet and Ledger Live.
Using THORChain, you can swap one asset for another seamlessly in a permissionless environment, eliminating the need for order books to provide liquidity. Instead, the pricing is determined by the asset ratios in a pool, functioning similar to an automated market maker.
RUNE is the native utility token for the THORChain platform, serving as the primary liquidity asset in the exchange. It's also pivotal for governance and security, contributing to the platform's Sybil resistance mechanisms. THORChain nodes stake RUNE to engage in the rotating consensus process, ensuring economic security for the platform's native asset vaults. The bond's value consistently exceeds the network's liquidity.
When Was THORChain Initiated?
THORChain was financed through an initial DEX offering (IDO) that took place on the Binance DEX in July 2019. The single-chain chaosnet began in April 2021, and the multi-chain Chaosnet upgrade followed in the same month. The platform reached its Mainnet stage in June 2022. Learn more here
Who Established THORChain?
According to an official from THORChain, the platform operates without a CEO, founder, or directors. Development is driven through Gitlab, with nodes making the key decisions on the codebase to implement.
Nine Realms, a community-formed organization, now oversees the codebase and collaborates with the node community for software upgrades.
What Sets THORChain Apart?
THORChain enables users to engage in native asset swaps, allowing for the exchange of Bitcoin, Ether, Stablecoins, and other cryptocurrencies across 9 different blockchains. Acting as a decentralized cross-chain exchange, it supports native asset transactions.
A distinct slip-based fee mechanism is employed by THORChain to address "impermanent losses," the temporary losses liquidity providers might face within liquidity pools. This slip-based fee helps maintain necessary liquidity placement.
THORChain employs deterministic swap ordering, prioritizing trades based on liquidity fees paid, thwarting frontrunning, sandwich attacks, and MEV tactics.
The platform integrates innovative technologies, including one-way state pegs, a state machine, the Bifröst Signer Module, and a TSS protocol, all designed to allow seamless, permissionless cross-chain token swaps. The complexity is hidden from users, making it straightforward for even those new to trading.
THORChain's Streaming Swaps let users divide large swaps into numerous smaller transactions over time, significantly reducing swap fees.
What Is the Circulating Supply of THORChain (RUNE) Coins?
As of October 2024, there are 337 million RUNE circulating from a total cap of 500 million.
THORChain's initial launch followed an IDO on the Binance DEX, where 20 million RUNE were sold. Prior to this, 130 million RUNE were distributed during earlier funding rounds.
The official Binance DEX proposal detailed that 10% of the total supply (50 million tokens) was designated for the team and locked until the mainnet launch, releasing at 20% per month after this. Much of this allocation was resold to raise additional funds for the protocol. The team retains less than 1% of all RUNE. By July 2023, all RUNE is fully vested and unlocked.
ERC-20 and BEP-2 RUNE have been phased out following a 2.5-year transition to native RUNE, managed by the validators. Only mainnet RUNE is accepted by the protocol.
How Does THORChain Ensure Network Security?
THORChain is constructed using the Cosmos SDK and leverages the Tendermint consensus mechanism. This offers protection against attacks via an innovative BFT proof-of-stake (PoS) system where numerous validators jointly propose and finalize transaction blocks.
THORChain's native asset vaults are safeguarded by GG-20 Threshold Signatures. Every three days, a process called "churning" refreshes the active validators, removing the old, least bonded, and underperforming validators. New validators are added based on their bond amounts. The updated validator set utilizes Threshold Signatures to create new native asset vaults, ensuring all network-held funds are moved to new addresses.
Where Can You Purchase THORChain (RUNE)?
RUNE is most accessible on the THORChain AMM, which can be reached through any ecosystem interface.
RUNE, a popular cryptocurrency, is available for purchase and trading on multiple centralized and decentralized exchanges. The most notable platforms include Binance (centralized) and THORChain interfaces like THORSwap (decentralized).
