THORCHAIN: GOD OF DECENTRALISED CROSS-CHAIN LIQUIDITY PROTOCOL
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THORCHAIN: GODS OF DECENTRALISED CROSS-CHAIN LIQUIDITY PROTOCOL
If you have been around in the sector for some time a common name that you would have no doubt heard of is THORChain which in my opinion is such an under-rated project that if more people understood its true potential in what the team are trying to build it's native token would be significantly stronger in value.
We all know the challenges in trying to purchase tokens from various chains, storing them, moving them around, swapping them, wrapping them errr... the head aches a real. The only place where you don't have as many transfer issues or headaches are on centralised exchanges. But even then they come with risks of being hacked, founders running off with the assets and your cash not to mention a lot of them don't actually provide you with the asset just an set amount of figures in your relevant wallet. This is why transfers at times can take a long time and sales are frozen because the exchanges aren't actually in possession of the assets.
A Decentralised Solution
THORChain is fighting against big centralised exchanges by implementing a cross chain exchange where native tokens can be swapped for other chain native tokens. The technology is built on Cosmos SDK and Tendermint and operates a number of different token vaults that are drawn upon when a swap is triggered source. Unlike centralised exchanges THORChain being built on block chain technology and operated by smart contracts means trades can not occur unless there are assets to facilitate the trade.
To ensure that THORChain vaults remain sustainable and stocked with a range of native tokens THORChain has their own native token called RUNE which has a range of uses on THORChain. RUNE is used to incentivise liquidity providers, pay node operators who secure the network, Governance and Security of the network securing economic behaviour source
To ensure economic sustainability THORChain has implemented an intricate fee method that is applied to each network. As no two networks are the same in transaction fees the model takes into consideration a number of factors. The fee structure covers the cost of operations and helps build vaults for a full break down on fees charged per chain you can access them here.
As the model is decentralised the fees generated go towards users that are supporting the network and maintain a healthy economic standard for THORChain.
A Message From THORChain
I wanted to know a bit more about the project from the THORChain team's perspective and their experiences developing a fully decentralised cross-chain liquidity protocol. The team pointed out that in 5 years since their commencement they are still the only fully decentralised cross-chain liquidity protocol that supports native assets and not wrapped versions.
The project low has been the challenges experienced to creating a cross-chain protocol and the hardship however, their highlight is that it actually works. A true testament of the skills and qualifications of the project team.
The team further highlighted that THORChain is the ONLY cross-chain protocol that works and urges all people investing in digital assets to use their chain to support true decentralisation.
THORChain Continues to expand
The team behind THORChain continues to push the boundaries by further expanding their project into new and emerging initiatives such as including lending protocols, Vault Nodes, Insurance and a range of other exciting features which can be seen Here. All of the endeavours listed by the team will continue to benefit the entire ecosystem by driving more income and expanding on their local economy which directly benefits investors and independent network supporters further providing economic opportunities for Block Chain operatives.
Bouncing Back From Adversity
I know what you're thinking with all that cash hidden away what is the risk? Well this is the thing that sets THORChain aside from many others as THORChain suffered a Hack which saw a significant amount of cash taken from the protocol vaults. THORChain quickly got to work to ensure the hacks couldn't continue and close off points of weaknesses while committing and ensuring to the loss of value not impacting the protocol.
THORChain has since continued to further drive their work and were able to bounce back from the attack and didn't fold which shows their ability to continue to work towards their vision of a truly decentralised exchange.
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