In the context of the rapidly developing cryptocurrency market, the demand for trading assets between different chains is increasing. THORChain is a pioneering and long-standing DeFi solution that allows users to easily swap between different assets without the need for an intermediary exchange. So what is THORChain? Let's explore the decentralized cross-chain between Bitcoin, Ethereum, and BNB Chain with Coin68 in the article below!
What is THORChain (RUNE)? Cross-chain protocol built on Cosmos SDK
What is THORChain?
THORChain is a decentralized cross-chain infrastructure project that allows the exchange of native assets between different blockchains. THORChain operates as an independent Layer 1 decentralized exchange (DEX) built on the Cosmos SDK.
THORChain homepage
More specifically, THORChain can be seen as a decentralized protocol (DEX) that allows the exchange of native assets between different blockchains, such as Bitcoin (BTC), Ethereum (ETH), BNB Chain (BNB) and many other blockchains without the need for wrapped tokens. This means that users can directly exchange cryptocurrencies from one blockchain to another in a secure manner without the need for a centralized intermediary.
Distinctive Features of THORChain
THORChain Security
A distinctive feature of THORChain is its high security with a multi-layered verification model. Specifically, THORChain uses a series of security mechanisms to ensure the safety of user assets in the network, combining economic, technical, and cryptographic measures to prevent risks and attacks. One of the key mechanisms is Proof of Bond, which requires participating nodes (THORNodes) to commit a certain amount of RUNE tokens. If a node intends to steal assets, their bonded amount will be confiscated to compensate the liquidity pools, helping to prevent fraudulent activities and protect assets.
The Incentive Pendulum mechanism will adjust the rewards between node operators and liquidity providers, encouraging the commitment of more RUNE tokens to ensure the safety of assets in the network. Additionally, THORChain uses a Threshold Signature Scheme (TSS), a leaderless asset management mechanism where nodes collectively sign to verify transactions, eliminating the risk of centralization from a single private key.
Furthermore, the network has additional security measures such as a confirmation counting mechanism to prevent double-spend attacks on chains without immediate finality. The system also continuously checks the actual balance against the main treasury to detect and prevent transactions in case of discrepancies. Moreover, transaction pause control and automated security monitoring are important measures to protect the network from potential incidents and attacks.
Features of THORChain
- Native Asset Swap: This feature allows for the direct exchange of native assets between blockchains without the need for wrapped assets.
- Multi-Chain Support: The project supports many popular blockchains such as Bitcoin, Ethereum, BNB Chain, and has a flexible design that allows for the integration of new blockchains in the future.
- Continuous Liquidity Pool: This mechanism helps the project provide one-sided liquidity with dynamic slippage fees, protecting against price manipulation attacks. Users can provide liquidity for a single asset without the need to provide an equivalent amount of RUNE.
- THORName: Users can register a unique cross-chain wallet address, simplifying the process of sending and receiving assets across multiple blockchains.
- Savers: This feature allows users to deposit native assets and earn interest through Savers Vaults without the need to interact with RUNE tokens.
- Lending: THORChain is developing a lending feature that will allow users to use their assets as collateral to borrow other assets.
- DEX Aggregation: The project plans to support the integration of DEXes, allowing users to access liquidity from multiple DEXes through a single interface.
- Generic Messaging: THORChain is researching a feature that will enable decentralized applications to communicate and interact with each other across different blockchains.
THORChain Ecosystem
THORChain not only provides a single protocol but also offers a complete ecosystem to address all liquidity-related issues in the cryptocurrency market. Some of the projects within the THORChain ecosystem include:
- THORchain: The decentralized liquidity protocol.
- THORSwap: A multi-chain DEX built on THORChain's liquidity.
- THORWallet: A non-custodial wallet integrated with the cross-chain DEX.
- ASGARDEX: A fast and secure liquidity interface for THORChain.
In addition to the above projects, THORChain will be launching a new product in August 2023 called Lending. With THORChain Lending, borrowers can deposit collateral assets and borrow without paying interest or worrying about liquidation or expiration.
RUNE Token Fundamentals
RUNE Technical Specifications
Project Name | THORChain RUNE Bitcoin, Ethereum, THORChain Updating 500,000,000 RUNE 337,089,876 RUNE RUNE Token Allocation: - Liquidity emission: 50% - Operational reserve: 13% - Marketing: 12% - Founders, advisors: 10% - Private sales: 6% - Pre-sale: 7% - IDO: 2% Utility of RUNE Token: - Medium of Exchange: RUNE is used as an intermediate asset in cross-chain swaps. - Sybil Resistance: RUNE is used to prevent Sybil attacks on the network. - Asset Collateralization: Nodes must stake RUNE to secure assets in liquidity pools. - Asset Prioritization Signal: The amount of RUNE staked determines the listing priority of new assets. - Transaction Fees: RUNE is used to pay transaction fees and prevent network attacks. - Rewards: Block rewards are distributed to operating nodes and liquidity providers after fees are deducted. Where to Buy/Sell RUNE: Investors can currently purchase RUNE on centralized exchanges such as Binance, Gate.io, Bybit, Bitget, and Kucoin. THORChain Development Roadmap: [Image of THORChain development roadmap] THORChain Core Development Team: The core development team of THORChain has not been officially disclosed yet. Coin68 will update this information when it becomes available. THORChain Investors: [Image of THORChain investors] In summary, this is the information about the THORChain project. Through this article, Coin68 hopes that readers will understand the basic information about this project to make their own investment decisions. Wish you successful investments! Note: The information in this article is not investment advice, Coin68 is not responsible for any investment decisions made by you. Wish you success and a lot of profits from this promising market. |
