1./ The reason I fell in love with $LUNA is because of its magnificent value capture. Although $LUNA will always be my number one, $RUNE is definitely a token with a great value capture too.
What is @THORChain, what is $RUNE and why does it have potential?
What is @THORChain, what is $RUNE and why does it have potential?
2./ @THORChain is a cross-chain liquidity protocol. The DEX built on #Thorchain is @THORSwap. #THORswap allows users to directly swap native assets on different blockchains with only one click. So no wrapped or pegged assets. Why is this important?
3./ Usually if you want to convert $BTC to $ETH you have to exchange your $BTC to $xBTC (the ERC-20 standard) and than to $ETH. Two transactions, so two times transaction fees.
4./ Next, in the short period of owning $xBTC you don't own $BTC but a derivative. You have to trust that it keeps the same price as one $BTC. If it doesn't you could lose money.
5./ By using @THORSwap this conversion of $BTC to $ETH or the other way around can be done in one transaction eliminating the double transaction costs and the trust issues. And this is not only for $ETH and $BTC but for many others too.
6./ So now we know why @THORChain is important, what is $RUNE and why am I excited?
$RUNE is the native token of #THORChain and has different functionalities. It is used for managing liquidity, security, governance and incentives.
$RUNE is the native token of #THORChain and has different functionalities. It is used for managing liquidity, security, governance and incentives.
7./ Usually liquidity pools consist of the two assets you want to swap. In previous example, it would be $ETH and $BTC. At @THORSwap, every asset is pooled against $RUNE. So for the $BTC / $ETH swap both the $BTC / $RUNE and the $ETH / $RUNE pool are used.
8./ As a result, everyone wanting to provide liquidity on @THORSwap of a certain token has to provide an equivalent dollar amount of $RUNE too. For example, if someone wants to provide $10.000 of $BTC and the price of $RUNE is $10, 1.000 $RUNE tokens have to be deposited too.
9./ Because of this a huge demand for $RUNE tokens is created.
Currently @THORChain is still in their #Chaosnet where they are using liquidity caps. Once they upgrade to mainnet, which is expected soon, those caps will be gone and I expect a huge demand increase for $RUNE.
Currently @THORChain is still in their #Chaosnet where they are using liquidity caps. Once they upgrade to mainnet, which is expected soon, those caps will be gone and I expect a huge demand increase for $RUNE.
10./ Amazing, right? But that's not all. Let's talk about #security. In order to provide network security, #THORChain requires twice as many $RUNE to be bonded by network operators as there is $RUNE staked.
11./ Because of those two combined, when there is 1M dollars of $BTC or any other asset locked in the protocol, the market cap for $RUNE is at least 3M dollars.
And I say at least, because there is always speculation which drives the price higher.
And I say at least, because there is always speculation which drives the price higher.
12./ A cross-chain liquidity protocol is one of the most important things to have in crypto. @THORChain is filling this gap and their token, $RUNE, is crucial to make it succeed.
13./ The need of a cross-chain liquidity protocol combined with the insane tokenomics of $RUNE is just mind blowing. Around July and August this year @THORChain faces some issues but they managed it all perfectly.
14./ To be honest, and this is not financial advise, I can't believe the price is still this low. A real bargain. I'm filling my bags.
So, tell me. You liked to read this? Did I mis anything?
So, tell me. You liked to read this? Did I mis anything?
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