A n00b Experience/Guide To Pooling RUNE on ThorSwap With Trust Wallet

At this point, with all the new apps that crypto has to offer in terms of defi, gaming and everything else, I’m quite OK calling myself a n00b, even after almost five years in crypto 😊. It will be even harder to follow everything going down the road. It will be like to know every internet company today.

I had some RUNE seating on Binance for ages. At first, I didn’t want to enter some of the pools, because of the expectation for the price to appreciate and the impermanent loss. Then the chain kept getting hacked, so the coins just stayed idle.

Recently Binance introduced the mandatory KYC, meanwhile Thorchain went back online and it was time for me to withdraw RUNE from Binance and try to pool some on Thorswap.

https://app.thorswap.finance

Choose a wallet

As for every other crypto that has its native blockchain and you don’t want it on a CEX, the first thing you need to do it to pick a wallet. There are multiple options out there, but I have settled for Trust wallet. It is a mobile app only wallet that initially was developed for ETH and its tokens. Later it was acquired by Binance. Trust swap is considered as a light wait easy to use app.

Trust wallet is a multichain non custodial crypto wallet. What this means it provides true ownership to your crypto assets on a different chains.It's not a centralized app where you deposit your crypto assets, where they show you their database points for your tokens.

Trust swap interacts directly with the different blockchains like BTC, ETH, BSC, LTC, RUNE etc. True ownerships comes with some drawbacks. As for the most people in crypto know making transactions on layer one L1 chains, usually comes with fees. In this case since you have multiple blockchains management on one app, in order to make transactions on each blockchain you need to load each wallet with the fee token. Some ETH in the wallet for making tx on the Ethereum blockchain. BNB for transactions on BSC and on the native BNB blockchain. RUNE for Throchain and of course Bitcoin.

I have experienced the lack of the fee token first hand as we will see below.

Transfer RUNE From Binance To Trust Wallet

Ok this is pretty much self explanatory and straight forward. What you need to be careful about is what type of RUNE you are transferring. Trust wallet supports RUNE on three chains:

• Native RUNE on Thorchain
• BEP2 RUNE on the Binance Chain
• ERC20 RUNE on Ethereum

So, yea, not as simple for a new comer. I ended up transferring BEP2 RUNE to Trust Wallet, that later I will “upgrade” to native RUNE to pool against native Bitcoin.

Connect To Thorswap

The Thorswap app is the most used one on Thorchain for providing liquidity. To connect with it you will need to use wallet connect on Trust wallet, and unlike the usual wallet extensions that we are used to like Metamask, this is a bit different. The way you connect is click the connect wallet on the app, choose wallet connect and then scan the QR code from the app on your mobile. On your mobile you choose wallet connect from the settings option and the camera will pop up. A team play between desktop and mobile 😊.

First scan the code.

Click connect.

Next, for each transactions you make on the web, you will need to sigh via mobile. A pop up will appear on your mobile that looks like this.

An example of transaction to upgrade RUNE assets from BEP2 to native RUNE.

Note that for this transaction as you can see from the screenshot it is needed BNB for the fees.
I have loaded some BNB, and this is BNB on the Binance Chain, not the Binance Smart Chain (BSC). You can convert BNB between the two on the Trust wallet app, as well as on the web.

Providing Liquidity

Next provide liquidity.
Providing liquidity is quite straight forward, you go to the liquidity tab and it will catch the assets that you are holding and give you the options.

What is interesting about Thorswap and RUNE is the build in option for providing liquidity asymmetrically.

If you look at the red square, you will see the options for BTC, BTC+RUNE, RUNE. What this means if you have BTC or RUNE only you can provide liquidity with the one asset only and it will automatically swap half of it for the other asset and provide liquidity. The option is there if you have the two assets as well.

Since I have RUNE only I’m choosing that option, the last one in the red box. This is quite a nice addition, so you don’t have to split the tokens in half, make calculations or whatever. Just pool the one asset that you have an of you go.

Again, a note on the fees. For this operation the fees are paid in RUNE. A 0.02 RUNE as we can see from the screenshot.

Testing withdrawing liquidity
Since this is my first time using this app, I usually want to test withdrawing liquidity. The menu is easy to use, just go on withdraw liquidity.

But the, the transaction is not going trough!

Trying it a few times, and it still doesn’t want to go trough. I’m checking around a bit, and looking at the previous transactions and then noted that I need liquid RUNE for fees for adding or removing liquidity. Oh well.

Swap some of the native BNB I have put in for native RUNE.

Try to remove liquidity again…. and it worked!

Back in the pool, but this time leaving some liquid RUNE for future transactions.

You can track your LP position on Thorswap on Thoryeild.

My LP position tracked on Thoryeild.

https://app.thoryield.com

As we can see even though I have added RUNE only, my LP is now split between RUNE and BTC. The thing is when you will remove liquidity it will remove it back to one asset, in this case RUNE.

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I will leave the RUNE pooled for a bit but might remove it soon. I wanted to test it out and see how it works. Will see what will the yield be in the next few days/week.
Also one of the biggest lessons from the process above is better have multiple assets to pay all the fees 😊. BNB and RUNE especially for this process. Lucky Thorswap allows swapping between native chains, so you can swap some between them depending what you need, as I have done with BNB and RUNE.

All the best
@dalz

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