Thread by @thorchain_org

So composite assets - what are they?

You buy them out of convenience, they're actually an index that is automatically rebalanced in a multi-asset liquidity pool.

Such as:
THOR.USD (important)
THOR.CRYPTO
THOR.ALTCOIN
THOR.DEFI
THOR.TEN

Let's take a look.

You hold this asset because:
1) It is an index that automatically and efficiently rebalances
2) They are yield generating, you are paid an interest to hold them (comes from liquidity fees from the pool)

Composites are generated from the liquidity shares of multi-asset synthetic liquidity pools.

Means they can be made up of 2+ synths, in equal proportions.

Arbitrage agents keep the pools balanced for profit, and liquidity fees go back to the composite, which generates yield.

Synthetic assets are generated from the liquidity shares of native assets + RUNE.

So demand for composites -> demand for synthetics -> demand for the underlying + RUNE.

This ensure the system ALWAYS has enough liquidity, and continually pulls in RUNE.

Composites (like synths) are IBC-compatible, so can be sent anywhere into the Cosmos.

THOR.USD is a strongly-pegged stablecoin of a basket of median-priced stablecoins, which automatically curates its members and rebalances.

AND it will be interest bearing.

And all of this can be achieved without any oracles.

The power of RUNE-paired cross-chain liquidity pools.

Stay tuned, the design is still being finalised, but you can start to see the trajectory of #THORFi.

$RUNE