THORChain incorporates a foundational protocol known as Continuous Lending Pool (CLP), a cornerstone of its innovative capabilities. CLP facilitates the seamless cross-chain exchange of various crypto tokens. The mechanism involves pooling non-native assets supported by THORChain alongside its native currency, $RUNE. Through this arrangement, tokens are allocated from the pool to enable cross-chain transactions.

When a user initiates a cross-chain exchange or wishes to swap between two non-native crypto assets, THORChain's protocol automatically orchestrates the conversion of the involved token into $RUNE. Subsequently $RUNE is exchanged for the desired token the user intends to acquire. This dual-swap process transpires instantaneously, all within a non-custodial framework.

THORChain also employs the Proof of Stake (PoS) consensus mechanism, where staking the $RUNE token is pivotal for ensuring the system's overall reliability. This staking mechanism not only enhances security but also offers users the opportunity to earn yields based on their deposits into the liquidity pools within the network. These deposited funds are then available for borrowing by other users cultivating liquidity. Additionally the network incentivizes nodes to validate swaps contributing to the system's integrity. Interested validators seeking a validator spot must bond a minimum of 1 million $RUNE and these nodes operate with reinforced security measures to safeguard the network against potential threats.

However in the past THORchain has been victim to previous threats that caused two major hacks in 2021. In July the protocol was drained of around 4,000 ETH in a hack that exploited a bug in the Bifrost protocol, which is a bridge that allows users to swap assets between THORChain and the Ethereum network, and later in the year in September the network was again hacked for around $8 million in assets.

The THORchain team's reaction to both hacks was extremely commendable. They swiftly halted the network, conducted comprehensive audits, and provided reimbursements to all the users who suffered losses in the breaches. As a result of their proactive measures, THORchain has remained unhacked since then.

THORChain (RUNE) is a cryptocurrency launched in 2018and operates on the BNB Beacon Chain (BEP2) platform

THORChain

Jeppopo

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.

THORChain RUNE

Cross-chain liquidity protocol