THORChain

What is Thorchain (RUNE)?

• Decentralised liquidity protocol for cross-chain asset exchanges.

• RUNE is used for network security, governance, liquidity, and incentives.

Tokenomics

• Max Supply: 500 million RUNE tokens.

• Distribution: 44.1% for protocol reserves, 5.2% to early seed investors, 10% to the team, 10.4% to the community, 10.5% to operational reserve, and 19.8% for circulating supply.

• Value Accrual: RUNE is required to be paired with other assets in liquidity pools, maintaining a 1:1 value ratio, which directly ties its value to the liquidity and activity within the network.

Market Data

As of today #{today’s date}, the price of THORChain is ₹98.84 INR or 1.144 USD, with a 24-hour trading volume of 67302007.05 USD. The market capitalisation for THORChain is 403236712.91USD. The circulating supply is 351557602 THORChain, with the total supply also being 425655127 THORChain.

Pros and Cons

Pros:

• Enables decentralised, cross-chain swaps without the need for wrapped tokens.

• RUNE holders can earn yield by providing liquidity or securing the network.

• Robust incentive mechanisms for liquidity providers and node operators.

:

• The project’s relatively short history and the absence of a traditional management structure could be considered risks.

• Potential security risks, as evidenced by past hacks.

Why Should You Invest in the Coin?

• Unique for enabling decentralised cross-chain swaps.

• Robust incentive mechanisms and potential for network growth.

USP of the Coin

• Facilitates decentralised swaps of native assets across multiple blockchains.

• There is no need for wrapping or pegging; it is secured by RUNE.

Problem the Coin is Solving

• Enhances liquidity and connectivity in DeFi by allowing asset swaps across isolated blockchain ecosystems.

Founder and Team Background

• RUNE was founded in 2018 by a pseudo-anonymous team, with Chad Barraford as a known contributor.

• Operations are managed by Nine Realms, led by Gavin McDermott.

ICO Price

• Public sale price: $0.032 on July 20, 2019.

• Private sale price: $0.023, Seed sale price: $0.02.

• Raised $1,520,000 with a total issue of 1,000,000,000 RUNE tokens.

Risks Associated in Investing in the Coin

• Security Risks: Past hacks have shown vulnerabilities.

• Market Volatility: RUNE’s price can be highly volatile.

• Regulatory Risks: Changes in DeFi regulation could impact THORchain’s operations.

Whitepaper Insights

THORchain’s whitepaper outlines a decentralised liquidity network that enables cross-chain swaps without relying on centralised exchanges or wrapped tokens. The network uses automated market makers (AMMs) to facilitate trades directly between users’ wallets, maintaining custody of assets throughout the process. RUNE, THORchain’s native token, is central to the ecosystem, serving as the base currency for liquidity pools, securing the network through bonding by node operators, and enabling on-chain governance.

The whitepaper details THORchain’s innovative Continuous Liquidity Pools (CLPs), which allow for the pooling of assets and RUNE to provide liquidity and facilitate swaps. This design ensures deep liquidity and minimises slippage for users. The network’s security model requires node operators to bond RUNE at a value double that of the assets they are responsible for, creating a strong economic incentive to act honestly. THORchain’s governance model is also highlighted, with RUNE holders having a say in key decisions, such as which new assets to support and various parameter adjustments. The whitepaper emphasises the importance of decentralisation and user sovereignty, aiming to create a permissionless and censorship-resistant platform for financial services. The document also addresses the technical architecture, including using the Tendermint consensus mechanism and the Cosmos SDK for cross-chain communication. It outlines the project’s phased launch strategy, starting with a single-chain chaosnet, progressing through a multi-chain chaosnet, and culminating in a fully decentralised mainnet. In conclusion, THORchain’s whitepaper presents a comprehensive vision for a decentralised, cross-chain liquidity network that empowers users to swap assets freely across different blockchains, fostering more excellent connectivity and efficiency in the DeFi ecosystem.