WHAT IS THORCHAIN?
THORChain is a groundbreaking technology that allows for fully decentralized swaps between any supported blockchain, and earns yield from native assets.
THORChain will insure liquidity providers against impermanent loss.
The network is run by dozens of anonymous node operators who bond RUNE and are rewarded for their services. Attempting to fork and bootstrap a clone would be a difficult task to achieve.
The design of the network ruthlessly maximizes revenue for liquidity providers and node operators.
RUNE is required to be paired as a settlement asset 1:1 in pools. But the network's economic design causes the value of RUNE to increase with liquidity depth.
The THORChain protocol is totally transparent -- you can verify its solvency for yourself. View the nodes that run the network, the vaults that they host, and the total value locked in the network.
The THORChain project is made up of a team of core developers, but is augmented by a enormous community that has built various tools that provide resources for the community.
The RUNE network asset plays a crucial role in the THORChain ecosystem. It's not a governence token -- it's the settlement asset that enables liquidity across pairs, and is bonded to secure the network.
A balance between bonded and pooled RUNE is key to a secure and liquid network. If the network is under-bonded, node operators are incentivized to increase their bonds, if it’s over-bonded, liquidity providers are incentivized to pool more assets.
The price of RUNE is deterministic — since the network requires it to be bonded 2:1 by node operators, and paired 1:1 with pooled assets by liquidity providers, the market cap of RUNE is at least 3x the TVL of non-RUNE assets.
The combination of the various economic incentives result in a network that produces high APY for both node operators and liquidity providers.
A liquidity-sensitive slip-based fee solves many issues — including bootstrapping shallow pools, discouraging dust and sandwich attacks, and forcing high volume/frequency traders to pay their fair share.
The use of a CLP allows for many benefits, such as the ability to sense prices without an oracle. Simply by knowing the asset depth in pools, the network is able to determine price while arbitrageurs ensure the rate is inline with current market conditions.
ROADMAP & PLANS
At its core, THORChain is a cross-chain liquidity network. But the design of the protocol enables much more than just swaps -- synths, composites, self-paying loans -- anything is possible.