Are you trying to understand #THORChain? βοΈ
Here's what I learned about THORChain and the best resources I've found to read more about it. π
A thread π§΅π
Here's what I learned about THORChain and the best resources I've found to read more about it. π
A thread π§΅π
@THORChain is a decentralized cross-chain automated market maker (AMM) that allows users to trade spot Tokens across blockchains.
It allows users to trade in the native asset, not a synthetic wrapped version like #wBTC.
It allows users to trade in the native asset, not a synthetic wrapped version like #wBTC.
Trading over centralized exchanges presents risk through:
β counterparty risk
β the time that it takes to send assets to #CEX and withdraw again
β forced seizure of assets through regulators or governments
β hacks
β counterparty risk
β the time that it takes to send assets to #CEX and withdraw again
β forced seizure of assets through regulators or governments
β hacks
@THORChain enables cross-chain swaps via a network of nodes and liquidity providers.
#RUNE is the native token, that is being used on @THORChain and fulfills 3 roles:
1. secures the network
2. acts as other side of the LP pair
3. collects fee
#RUNE is the native token, that is being used on @THORChain and fulfills 3 roles:
1. secures the network
2. acts as other side of the LP pair
3. collects fee
@THORCchains AMM has a unique design β¨ where every asset in liquidity pools, has to be paired with #RUNE.
This increases global deep liquidity, decreases slippage and prevents fragmented liquidity across low volume pools.
This increases global deep liquidity, decreases slippage and prevents fragmented liquidity across low volume pools.
Assets on @THORChains stay secure, by a special mechanism that ensures that there is always a relative balance between #RUNE and other assets in the system.
For every $1 of a native asset in the network, LPs must pool an equivalent $1 of RUNE and nodes in the network must bond $2 of #RUNE to secure #consensus.
This creates a scenario where the node operators are incentivized to operate honestly, because of their bonded #RUNE.
This creates a scenario where the node operators are incentivized to operate honestly, because of their bonded #RUNE.
To maintain the ration of native #RUNE and other assets, there are certain incentives that maintain a balance in the system.
This is called the incentive pendulum. When #RUNE is over-bonded, it's an inefficient state and pools are incentivized.
When #RUNE is under bonded, it's an unsafe state and bonding is incentivized.
When #RUNE is under bonded, it's an unsafe state and bonding is incentivized.
According to the #Whitepaper, the system is designed to target a 67% bonding rate and 33% staking rate.
github.com/thorchain/Resoβ¦
github.com/thorchain/Resoβ¦
Furthermore, the increase in #TVL leads to a higher demand for #RUNE and price increase.
This is what we've seen in the last weeks. Where #TVL went up β¬οΈ.
This is what we've seen in the last weeks. Where #TVL went up β¬οΈ.
The question now remains, what could lead to #TVL growth over the next weeks/ months?
@pothu laid this out very well in his thread below.
@pothu laid this out very well in his thread below.
https://twitter.com/cryptoPothu/status/1509602180180807683
@terra_money and @THORChain are both built on top of Cosmos SDK. They've recently integrated and users are now able to pool their #UST and #LUNA.
This led and most probably will lead to increased #TVL growth. π
This led and most probably will lead to increased #TVL growth. π
More resources to learn about @THORChain π
Great thread by @Cov_duk that breaks down @THORChain at the most fundamental level
Great thread by @Cov_duk that breaks down @THORChain at the most fundamental level
https://twitter.com/Cov_duk/status/1501801529916887042
Hope this was insightful π‘. Follow me to keep up, I'll write threads like this regularly. π
Thread inspired by: @multicoincap @TusharJain_ @KyleSamani @THORmaximalist @THORChain @ChadThoreau @THORSwap @BrokkrFinance @Cov_duk @cryptoPothu @ThoriumUST @danku_r @coinbureau @Bybit_Official
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