Thread by @GoneMultichain

#WTFTTFF ?
What The F* is This Thorchain Friendly Fork?

Thorchads, yesterday Part 1 of @MayaProtocolEng Whitepaper was unveiled in Discord discord.gg/TU7DR99cv2

As a @THORChain investor, Node op, or LPer, the news of a #THORChain fork might still catch you off-guard.
(1/🧵)

You will, rightly so, wonder how could this affect a protocol you have a vested interest into.

With this 🧵 I sum up Why #Maya is a friendly fork of #THORChain, and how its success will ultimately benefit @THORChain protocol, its security, its UX, and its userbase.

Remember when you were first Rune-Pilled?

Was it @TheRuneRanger or @THORmaximalist in Twitter?

Was it @CBarraford or @ErikVoorhees in a Twitter Spaces?

Was it the LP University @THORChainLPU ?

Perhaps @Danku_r, @ChadThoreau or another ‘Runatic’... ?

Chances are that you fondly remember the time THORChain started making sense to you.

I invite you, here and now, to come down the Mayan rabbit hole.

Let’s Cacao-Pill you.

Maya Protocol is an effort to create a backup system, an alternative to $RUNE and to THORChain that complement and strengthen it.

7 main reasons why (Last one is specially important to understand this is far from "just a copy" of THORChain):

1. Be the Backup of THORChain as backend provider.

If you've listened @CBarraford or @ErikVoorhees vision of the exchange industry in the years to come, you probably believe MultiChain Decentralized Liquidity Protocols will serve as backend to most crypto volume.

1 (cont). It is key to have a backup to any such system, similar to how Visa and Mastercard back-up each other.

2. Capture market that THORChain cannot seize fast enough.

THORChain virtuous circle of growth of security & liquidity cannot be artificially accelerated. One cannot grow without the other 👉 a “chicken and egg” problem to be balanced by the Incentive Pendulum at its own pace.

3. Anticipate TPS limit of THORChain.

ThorChain TPS limit is probably ~100 - 500. We want to be prepared, up, and running when the time comes.

4. Provide validation to THORChain technology.

There are still naysayers of what .@THORChain has created. Once more protocols enter the picture and continue THORChain mission, further market validation and confidence in this unique product will follow.

5. Target different markets and develop niches.

Let's face it, it took you ages to understand TC. The Total Addressable Market is huge and, although there might be commonality with some of THORChain’s users, Maya focus will be LATAM + much less technically oriented audiences.

6. Be a faithful squire of THORChain.

THORChain arbitrage opportunities are constantly big since they have to be carried out against order books.

This creates Impermanent Loss on THORChain’s books, which has a negative effect on the protocol’s economy.

Having a twin with whom to dance will create tighter arbitrage, distributed amongst both protocols and creating a smaller percentage of economic capture.

This would drive down arbitrage value capture as a % of TVL, protecting the liquidity capital in both protocols.

In time, the objective is to create a network of Layer Zero’s like Maya, THORChain and others... who become price leaders over CExes. At that point, IL would be negligible.

7. Synergistic communities.

Different teams & communities will improve THORChain ecosystem through cooperation and healthy competition.

Think of how #Polkadot and #Kusama complement each other!

Maya can be the canary in the coalmine for certain economic model changes. Case in Point:

- Fair Lunch through a Liquidity Auction
- Stable Pools
- Liquidity Nodes for Increased Capital Efficiency.

These are just 3 of the many innovations of Maya that will serve THORChain to experiment with tweaked versions of its economic system & incentive model.

Every week, Maya will unveil a new part of its Whitepaper highlighting new features that set it apart from THORChain.

Thorchads, I hope you can see the launch of @MayaProtocolEng as another important milestone reflecting the coming of age of @THORChain.

I'll be covering the news of Maya as they come. Next in line: Fair Launch through Liquidity Auction (100% of CACAO issued at TGE)

Onwards! ⚡️