THORChain (BEP2: $RUNE) is a decentralized cross-chain liquidity protocol that operates as a decentralized exchange on the Cosmos SDK.
THORChain utilizes the Tendermint consensus algorithm, the GG20 Threshold Signature Scheme (TSS), and the Cosmos SDK and runs as a Layer 1 blockchain. The project was built to promote blockchain interoperability. In short, it enables users to swap tokens across chains in a decentralized exchange without wrapping or pegging tokens.
Why THORChain Is Unique
One of the unique aspects of the THORChain DEX is how trading occurs. A defining aspect of the decentralized finance (DeFi) industry is automated market makers (AMMs). These AMMs allow users to exchange tokens via liquidity pools. However, most AMMs are limited to a single blockchain like the Binance Smart Chain or Ethereum.
THORChain offers a unique solution called continuous liquidity pools designed using the Cosmos SDK. The AMM-based protocol comes with backed technology that allows users to swap cryptocurrencies across blockchains, which were previously not interoperable.
How THORChain Works
Since its launch in 2019, THORChain has evolved into a major ecosystem with numerous products that utilize its multi-chain infrastructure. One of the first products launched by the developer team was THORSwap, a multichain DEX that utilizes the network front-end UI to facilitate cross-chain swaps.
Two groups utilize THORChain; the first are users who use the cross-chain services to exchange tokens. These exchanges are non-custodial and unrestricted. Users pick two tokens that they intend to swap, and the network calculates a network fee based on the network activity. Such exchanges occur between liquidity pools.
The second group that utilizes THORChain are liquidity providers. They add liquidity to the pools. All liquidity is bound using $RUNE tokens and is kept in vaults powered by network nodes. The use of continuous liquidity pools allows THORChain to eliminate external price feeds or oracles. Liquidity providers are incentivized using the fees charged to users.
Setbacks
The THORChain multichain chaosnet (MCCN) went live in April 2021, which enables cross-chain swaps between BTC, ETH, LTC, and other assets. However, the network suffered several attacks in July 2021, which led to the loss of over $13 million. By October 2021, the developer team had worked to fix the bugs, refine the code, and improve the security of the protocol. That helped to restore faith in the network, and when it held a private token sale that month, it raised $3.75 million.
$RUNE Token Details
$RUNE is the utility cryptocurrency token of the THORChain network. $RUNE launched with a total supply of 1 billion tokens, of which half of the tokens were burned in 2019. The maximum supply cap for these tokens is 500 million. The tokens are used to pay transaction fees, incentivize liquidity providers, secure the network via staking, compensate nodes’ transaction fees, and as a governance token for the THORChain protocol.
$RUNE Token Price Performance
$RUNE tokens were launched in July 2019 with a price of 1 cent. By the start of 2020, the price had risen to 7 cents, with the market cap remaining at around $10 million. Nevertheless, by the end of that year, the market cap spiked to $205 million and the price of RUNE hit $1.20 per token.
By May 19, 2021, the price of $RUNE reached its all-time high of $21.26 with a market cap of over $4.89 billion. However, five days later, the price came tumbling to as low as $3.30 with a market cap of around $1.89 billion.
The price of $RUNE has since dropped to the current price of $1.92 with a market cap of $643,648,891, which places it at #53 by market cap. 24-hour trading volume is currently $78,987,898 as of September 19, 2021, with most of the volume on Binance and THORChain DEX, which account for over $58 million.
[Click The $RUNE Chart Above To View On CoinMarketCap]
Social Media
THORChain has amassed a large social media following. It currently has 207.3k followers on Twitter, 13,644 members on Telegram, and 21,605 members on Discord.
Final Thoughts
$RUNE is perfectly positioned to become one of the most successful tokens in the crypto world. The token is the utility protocol of a project that enables easy, non-custodial exchange of value. Additionally, it is part of a major DeFi ecosystem with endless possibilities as Web3 grows and matures. $RUNE is undoubtedly a worthwhile token to hold long term.
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