Recently Rune has risen significantly to be ranked #45 in market cap in coinmarketcap. The THORchain is becoming the next big thing in crypto. But is it hype or is it real?
THORchain native token RUNE was publicly offered in 2019 through Binance. There were a total of 1 billion tokens offered at a price of $0.032 per token. Since then the coin has risen to close to $10.50 at present value. Its all time high was a little over $21.
When it comes to Thorchain one of its complexity lies in its code. It is open source but there are thousands of code lines. There is in all likelihood to ever be one Thorchain and if the chain succeeds it is unlikely we will see another chain like it.
Functions aside Thorchain's main initiative is to allow cryptocurrency in its native form to be control and used by its owner.
The protocol that has recently introduce the Terra Chain to be integrated is Thor Swap. A protocol similar to Uniswap and Sushi Swap and Pancake swap. Users can swap native crypto from one token to another. The great part about it is that the coins are in their native form. Therefore in order to use the protocol the user has to have the proper wallet to accept the native coins.
The basic operation to swapping the coins is pretty simple. For example from BTC to LTC the user would sell their BTC for Rune and from Rune to LTC. To incentives users to store their native tokens on Thorswap they earn a yield of native tokens for providing liquidity. The magic comes in for every $1 native asset locked in the pools there are $3 of Rune that needs to take its place. This is apart of the protocols operation. You can imagine that the price of Rune would need to rise to cope with the increase amount of assets locked in Thorswap, that includes the newly introduced Terra chain.
Final thoughts, we looked briefly at Thorchain and ever so slightly on their most active protocol in Thorswap. Yet beyond that there are many other potential applications with Thorchain. For instance over Rango users can swap in multiple tokens/coins with ease on one protocol.
Then there is Brokrr and DefiSpot in the future to roll out new ways of using Rune in the form of borrowing and lending and other ways of investing in cryptocurrency.
Then there is the $RUSD. A mechanism of burning Rune at its price to convert into $RUSD that is pegged to the $USD. This is similar to the Terra chain's Luna and UST.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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