What is THORChain? THORChain is a decentralized liquidity protocol that enables asset trading in the middle of blockchains. In this article, you can find answers to questions such as what is THORChain, what it offers, what is RUNE coin, how to get it, what is it used for. As Kriptokoin.com, we have compiled it for our readers who are curious about the project.
What is THORChain? What does the project offer?
Launched in 2019, THORChain is a blockchain project that allows users to exchange cryptocurrencies in the middle of different blockchains. Before the project migrated to its own network, it was running on the Cosmos blockchain. THORChain works as a decentralized liquidity exchange protocol. The local cryptocurrency of the project is RUNE coin. The protocol can be used to create liquidity pools. Liquidity pools are collections of cryptocurrencies locked into smart contracts. These pools allow crypto assets to be traded at their price in the current market dynamics.
The THORChain protocol, unlike many protocols, does not use instruction books to determine the cost of assets. Instead, prices are determined by the automatic market maker (AMM) based on the ratio of assets in the liquidity pools. The project does not aim for profit. The entire process price, etc., paid by the users in the protocol. costs are allocated directly to users. The protocol provides users with services such as staking, crypto exchange, trading by connecting to different blockchains, and AMM-powered liquidity pools and various activities. The project uses nodes called Bifrost to connect to other blockchains. Bifrost works as a contact protocol to integrate the network with other blockchains.
What is RUNE coin? What is it used for?
RUNE coin is the native cryptocurrency of the THORChain project. Cryptocurrency also works as a governance token. RUNE holders can vote and submit proposals for change in decision-making processes that affect the future of the platform. The token is available with smart contracts B-2 on Binance Smart Chain and ERC-20 on Ethereum Blockchain.
RUNE coin is used to fill liquidity pools and is used to confirm processes on the network. RUNE rewards are distributed to users at the platform’s events. RUNE holders can stake their assets. Token holders who lock their tokens for a certain maturity can earn passive income at maturity. With a market cap of almost $4 billion at the time of writing, RUNE was in the 44th largest cryptocurrency position. 330.6 million of the token, whose maximum supply was terminated as 500 million, was in circulation. This number corresponds to 66% of the maximum supply.
What are the advantages?
- RUNE has token staking. This means that token holders can earn passive income at maturity by locking their holdings to a certain maturity.
- Users of the network can switch and trade their assets in the middle of many blockchains.
- The platform works pretty fast. Users can get process approval within minutes in the protocol that works at high speed despite low process prices.
- The world’s largest crypto exchange Binance has recently presented a parity related to RUNE to its users. This could trigger an uptrend in the price of the coin.
What are the disadvantages?
- The protocol is mostly delegation on liquidity and blockchain integrations. Having a narrow usage area causes the project not to appeal to everyone.
- Users storing RUNE coins in virtual wallets increases the possibility of cyber attacks. This issue can be circumvented by moving assets to a hardware wallet.
What is THORChain? How to get RUNE coins?
RUNE coin is currently listed by crypto exchanges such as Binance, Kucoin, and FTX. Investors interested in the THORChain project can purchase the token by subscribing to one of these exchanges and depositing money in their wallets.