Thread by @wolf_of_defi

1./ After yesterday's tweet about $RUNE and $LUNA I saw many people wondering why $RUNE is so special. Because I want every #LUNAtic to jump on the $RUNE train, let's dive into $RUNE and @THORChain 🧵

2./ So what's @THORChain all about?

@THORChain's goal is to make it possible to swap all native assets against each other. For example swapping $ETH from your metamask for $LUNA in your #Terra wallet.

3./ Is this currently not possible? No.

You can send your $ETH to an exchange, sell it, buy $LUNA and send it to your #Terra wallet. But in this process you're dependent on a CEX. So this requires you to have trust in this CEX.

4./ Another option is using bridges. But by making use of bridges you make use of wrapped assets. You probably won't hold this wrapped assets for a long time, but still, you have to trust that this wrapped asset, for example $wETH is backed by a real $ETH ...

5./ If this is not the case your $wETH is just a useless piece of garbage.

Do we remember the recent @wormholecrypto exploit? That's exactly the risk when using wrapped assets.

6./ Okay, so that's the service @THORChain is offering.

Now let's talk about $RUNE's role in this game.

7./ To make it possible to swap native assets against each other @THORChain makes use of liquidity pools. So they have a pool for $BTC, $ETH, $DOGE and a lot more.

And soon also $LUNA and $UST.

8./ In a liquidity pool we never have just one asset. There is always a second.

You already feel it coming, don't you?

This second asset is $RUNE. In every pool.

9./ So this means there should be as much dollar value of $RUNE be locked in the liquidity pools as all other assets combined in the protocol.

But that's not all...

10./ To secure the funds in the protocol the equivalent dollar amount of the TVL in the protocol should be hold by nodes... In $RUNE

So this means for every $1 of any asset deposited in @THORChain, 3$ of $RUNE should be locked.

11./ At this moment, not every chain is integrated by @THORChain.

The more chains that are integrated, the more I expect people to use it, the higher the APRs will be, the more interesting it is to make funds yield, the more value $RUNE will have.

12./ Another thing that's interesting are the dApps leveraging @THORChain. Currently you can use @THORSwap to swap native assets, but what's really interesting are the new dApps that are being build.

13./ Once mainnet launches I expect projects like @Defi_spot and @BrokkrFinance to go live very fast. Once this happens we'll see dApps with a user friendly UI & UX that are making use of @THORChain.

14./ People will start using @THORChain without even knowing it.

This will also boost the transactions which will also have an effect on the demand for $RUNE.

15./ A trustless financial system is what #DeFi is all about and @THORChain is a corner stone of it.

Once those projects I talked about go live and more chains are connected, I expect $RUNE to moon

16./ I hope this helped you to understand why I'm so bullish on $RUNE. While typing this I decided to buy more.

Is something still unclear? Do you have any questions? Post them below and I'll try to cover them in a next thread