Origins and funding
In terms of funding, the project's only known financial event was the initial sale of its RUNE tokens in 2019 on the Binance DEX platform, where it raised approximately $1.5 million.
THORChain operational mechanism
Visual representation of how liquidity providers earn rewards. Source: medium.com/thorchain
What is RUNE
- Liquidity provision in the cross-chain exchange process;
- Network protection through nodes that bond RUNE tokens;
- Governance. Token holders can vote for protocol updates and improvements;
- RUNE serves as a payment method for swap fees and a reward for liquidity providers.
Prospects and challenges
When it comes to prospects, THORChain is still a fledgling project that launched its network in 2022. But who knows? It could spread its wings and soar during the next bull run. Recently, the protocol entered the Trust Wallet to enable cross-chain swaps, which is a step in the right direction for the project.
THORChain (RUNE) facilitates decentralized cross-chain trading by utilizing a unique liquidity pool system. These pools allow for the seamless swapping of assets across different blockchains without the need for intermediaries. The protocol employs Continuous Liquidity Pools (CLPs) that are connected via nodes operated by incentivized validators. This ensures high liquidity and low slippage for trades. THORChain also integrates a native utility token, RUNE, to secure the network, manage liquidity, and incentivize participation. The use of threshold signature schemes and state-of-the-art cryptographic techniques further enhances security and trustlessness in cross-chain transactions.
Dmytro Psevdonimenko
