Thorchain is a decentralized cross chain liquidity protocol that allows for cross-chain swaps between different blockchains, without relying on pegged or wrapped tokens. Central to its functioning is $RUNE which serves multiple pivotal roles within the platform.
For me, the standout feature of $RUNE is its integration into liquidity pools where it pairs with all native tokens from external blockchain networks linked to THORChain. Unlike conventional DEXs, liquidity providers don’t have to submit liquidity pairs and this innovation very much streamlines the process.
Traditional DEXs that rely on volunteer liquidity providers offering a 1:1 token ratio to a smart contract backed pool bring risks such as impermanent loss + liquidity fragmentation. $RUNE addresses these issues and enhances the platforms robustness.
In a notable collaboration, THORChain partnered with a favourite project of mine, Unizen. This partnership has now enabled users to effortlessly exchange ETH + AVAX for BTC, while also granting the flexibility to secure assets across different chains. This is one of the other updates that has resulted in a upswing in THORChain's recent activity. Show Less
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