PANews reported on January 24 that according to user TCB, THORChain is currently in a state of insolvency. Data shows that THORChain's current liabilities include $97 million in borrowings (ETH and BTC) and about $102 million in savings and synthetic assets, while available assets are only $107 million in external liquidity. TCB stated that THORChain's borrowing obligations are fulfilled by minting and selling RUNE tokens, a design that leads to high reflexivity, exacerbating the problem. After repaying $4 million in RUNE liabilities yesterday, the protocol has incurred additional millions of RUNE. The validator nodes have temporarily suspended network operations and are voting on a restructuring plan.
THORChain faces two choices: one is to maintain the status quo, where about 5-7% of the value will be withdrawn by the first withdrawers, and RUNE will continue to decline; the other is to declare debt default, preserve the valuable part through bankruptcy restructuring, and gradually repay creditors without affecting the viability of the protocol. TCB recommends the second option, which can protect the rights and interests of liquidity providers, maintain the network value, and achieve long-term development.
The market shows that THORChain (RUNE) is currently priced at $2.27, down 29% in 24 hours.
