What Is Thorchain (RUNE) How It Works & Where To Buy It?

Thorchain is a blockchain protocol built atop Cosmos. RUNE token is the native token that powers the Thorchain ecosystem.

Thorchain is a decentralized exchange (DEX) that allows users to buy, sell, borrow and lend native assets from multiple blockchains without wrapping the assets.

Thorchain (RUNE) has grown to become one of the most popular crypto projects in the blockchain space and is currently the 4th largest DEX in the world by market capitalization.

How Thorchain (RUNE) Works

There has always been a desire to remove centralization from the crypto space. Trading on centralized exchanges leaves the power in the hands rather than in the hands of the user. The phrase ”not your keys, not your coins” is a brief summary of why centralized exchanges can be dangerous.

Thorchain, a decentralized liquidity protocol that powers cross-chain swaps recognized the need for decentralization for users trading their crypto assets. The team understood the dangers of centralized exchanges and how users would always be on the backfoot – this led to the creation of Thorchain. A problem-solving, freedom-giving (in a sense) blockchain protocol that addresses centralization.

Liquidity providers on Thorchain are the backbone that powers trade on the decentralized exchange. Liquidity pools are essentially the private fund for each token listed on the DEX. Users can participate in liquidity pools (provide liquidity for two tokens) and will be rewarded in RUNE tokens or other specified tokens.

It’s important to understand the role of liquidity providers and liquidity pools because it helps us understand more about the Thorchain network. The network is catered to providing trading assets like Bitcoin, Litecoin, Dogecoin, and more – without the assets needing to be wrapped into a network-specific token (ERC20/BEP20).

This is revolutionary for the blockchain space, Thorchain allows users to trade their tokens in the same manner as they would on centralized exchanges, except with the freedom of anonymity.

This process is facilitated by using the RUNE token in a double-swap. Firstly, A token is swapped for RUNE. Secondly, RUNE is swapped for B token.

Thorchain liquidity pools ensure that trades can easily and instantaneously be facilitated. Non-RUNE assets are always swapped for RUNE, with RUNE being swapped for the desired token.

Another integral part of the network is the node operators and validators – which are required to provide double the number of funds held in vault asset pools. This is done intentionally because trade fees are distributed between liquidity providers and nodes.

Therefore, ”under-bonded” nodes receive higher portions of fees, which incentivizes bonding. When nodes are ”over-bonded” they receive less of a portion of fees. Thorchain is said to be in an optimal state when 33% of RUNE in the protocol is staked and the remaining 67% is bonded.

 

What Is Thorchain (RUNE) Used For?

Thorchain is a decentralized liquidity protocol where users can trade a variety of crypto assets, and participate in staking, borrowing, and liquidity provision.

DEXes have become popular because they allow traders to access DeFi products where they can earn rewards, as well as allowing users to trade anonymously on the automated market maker (AMM).

Essentially, the order book you may have become accustomed to on a centralized exchange is replaced with an automated market maker. The Know-Your-Customer (KYC) process required for many centralized exchanges is not a requirement for DEXes. Centralized exchanges offer staking and other basic features and DEXes like Thorchain offer a multitude of DeFi products where users can earn yields.

RUNE is the native asset of Thorchain and is to power all trades made on the DEX, pay for transaction fees, and it’s the governance token. RUNE token holders have voting rights for any proposals, upgrades, or any other proposed changes.

Additionally, RUNE is used in liquidity pools on Thorchain, traded on various centralized exchanges because of its price volatility, and used for governance purposes.

 

Where To Buy Thorchain (RUNE)

Thorchain (RUNE) tokens can be purchased on most of the popular cryptocurrency exchanges. The RUNE token experienced its most significant trading volumes in March 2022, when the 24-hour volumes surged to $550 million.

Five of the most popular crypto exchanges in operation are:

1. OKX
2. HTX
3. KuCoin
4. Coinbase

Many individuals prefer to keep their tokens off exchange in digital or hardware wallets. Most consider this to be the securest option because most exchanges experience hacks from time to time.

Trust Wallet is one of the most popular wallets used by hundreds of thousands of people around the world.

 

About Thorchain (RUNE)

How long has Thorchain (RUNE) existed?

Thorchain has an especially interesting history – it was founded during a Binance hackathon in 2018 by an anonymous team of developers. There are around 20 developers in the team and most of the resources used for Thorchain have been developed by its community.

The RUNE cryptocurrency has seen significant price appreciation since its listing, RUNE’s price reached an all-time high of $20.87 on the 18th of May, 2021.

What’s controversial about Thorchain (RUNE)?

The crypto space is flourishing with new projects, excessive trading volumes, and innovative networks that are revolutionizing finance. However, due to the rapid growth in the blockchain space, there is a considerable amount of risk associated when investing in any cryptocurrency.

Here are the two biggest controversies surrounding Thorchain (RUNE):

• Hacks – Thorchain fell victim to an $8 million hack that sent shockwaves through its community. The protocol suffered a loss of approximately 4,000 ETH after its Bitfrost Protocol was tricked by a hacker. The hack made many people in the Thorchain community fearful of using the DEX.

  One of the users’ biggest fears surrounding decentralized exchanges is always the risk of the DEX being hacked, and the user losing all the tokens they’ve locked in a liquidity pool or other financial product.

• Competitors – Thorchain has seen an immense amount of success since it entered the crypto space, dominating trade in the Cosmos ecosystem. However, Thorchain is not the only DEX in the crypto space. There are several decentralized exchanges that are extremely popular.

  The most influential DEX is Uniswap which has frequently experienced trading volumes of more than $1 billion in a 24-hour period. Thorchain has staunch competition and needs to add more utility and innovation to compete with the top projects.

How many Thorchain (RUNE) tokens are there?

At the time of writing, Thorchain (RUNE) has a circulating supply of 330,688,061.33 RUNE.

The total supply of Thorchain (RUNE) is 334,937,975.

The max supply of Thorchain (RUNE) is 500,000,000.

Can Thorchain (RUNE) be mined?

Thorchain (RUNE) is not a mineable cryptocurrency. Unlike Bitcoin and Ethereum which uses a proof of work consensus mechanism, RUNE uses a proof of stake consensus algorithm.

RUNE tokens power the DEX and the easiest way for users to earn RUNE tokens is through liquidity provision or staking rune.

Some centralized exchanges also offer staking rewards for users who lock up their RUNE tokens for a duration.

What is the market cap of Thorchain (RUNE)?

The market cap of any cryptocurrency can easily be calculated as follows: total amount of coins in circulation times the current market price of the coin.

Thorchain (RUNE) Market Cap = 330,688,061.33 RUNE x $6,30 = $2,08 billion (44th largest cryptocurrency by market cap).

As with all financial markets, the market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Thorchain (RUNE)

Thorchain is an innovative multi-chain DEX that has attracted a large number of users to the platform. There are several digital assets than can be traded on the platform, without needing to be wrapped tokens.

The cross-chain platform does however have some influential competitors:

• Uniswap
• PancakeSwap
• Ox
• Serum

What Are The Future Plans Of Thorchain (RUNE)

Thorchain has already added several digital assets including Dogecoin and Litecoin. The team is currently focusing on expanding the number of nodes and increasing the bonding amount.

The project is also actively seeking to increase user adoption, trading volume, and the total value-locked (TVL) in its ecosystem which currently accounts for $408 million.

 

Pros And Cons Of Thorchain And RUNE Token

Pros:

• Multi-chain DEX – Thorchain supports multiple chains including Dogecoin and Ethereum. Tokens traded on the DEX aren’t required to be wrapped versions.
• 4th largest DEX by market cap – Thorchain currently has a market cap of $2.08 billion making it the 4th largest DEX and the 44th largest token in the world.
• Real utility – There is a need for decentralized exchanges in the world – they ensure anonymity, easy trade and are devoid of centralized features. They’re exchanges that are unbiased and non-discriminatory since any user with a digital wallet can participate.

Cons:

• Competition – There is a significant amount of successful decentralized exchanges which currently facilitate hundreds of millions of dollars in trading volumes. For instance, DEXes like Uniswap also have more than $4 billion in TVL. Thorchain will need to stay innovative, increase user adoption and bring more utility to become the best DEX.