Thread by @laowrey

The hype about #THORfi is absolutely warranted. Much has been written about the mechanics, which is some real giga brain stuff. But there are two things about what this means that I am most excited about

1. Adoption 🏃‍♂️
2. Tokenomics 💰

@Thorchain #RUNAtics
🧵🕒
1/9

2/9 Adoption - Terra has shown that the path to adoption is to make things simple (e.g. $ANC). #THORfi does this in spades with a) a lending product that has 0 liquidation risks (no more sweating on whether you might have been liquidated during a flash dump)

3/9 The lending product has 0% interest rate - no more having to watch your yields move up and down depending on demand in market

4/9 What this means is you could choose to borrow money against your crypto and go buy more crypto or even a real world asset like a house without fear of being liquidated and at 0% interest rate!

5/9 b) a savings product where you can earn yield on stablecoins or any bluechip L1 assets e.g. yield on BTC! You can now actually earn a passive income on a $780b asset class where there are currently not many alternatives.

6/9 Tokenomics - #RUNE already has a deterministic model where the price of $RUNE is 3x the TVL of non-native assets. However, #THORfi has gone a step further with a burn mechanism. Terra has shown the genius behind a deflationary tokenomics model driven by adoption.

7/9 Whilst the lending product increases supply of $RUNE, the savings product is the counter-balance and there is an economic incentive to place much higher pressure on burning $RUNE supply because the yield is attractive.

8/9 As the collaterisation ratio > 100% the net impact is likely to be deflationary. With more adoption the higher likelihood of more $RUNE burn. And we have seen the impact of burn on token price ($LUNA)

9/9 After reading the #THORFi economic paper gitlab.com/thorchain/thor… and watching @cbarraford video

https://twitter.com/CBarraford/status/1505900381217468421?s=20&t=3as0l2MX6VfPzVwf5b8xZw

I have concluded I do not have enough $RUNE. NFA and DYOR