What is THORChain RUNE?

THORChain is a decentralized liquidity protocol that allows users to exchange cryptocurrency assets across a range of networks without losing custody of their assets.

The THORChain platform allows users to exchange assets permissionless, avoiding the need to access order books for liquidity. As a result, prices are maintained based on the ratio of assets in a pool (see automated market maker).

Also Read | Binance crypto exchange to invest $200 million in Forbes

THORChain was funded through an initial DEX offering (IDO) which launched through the Binance DEX in July 2019. It was originally launched in January 2021.

The native utility token of the THORChain platform is RUNE. This is the base currency of the THORChain ecosystem, used for platform governance and security as part of THORChain’s Sybil resistance mechanisms. THORChain nodes must commit a minimum of 1 million RUNE to participate in its rotating consensus process. It represents a multi-purpose universal token that supports all functions on the THORChain network and helps run the protocol.

Also Read | Cryptocurrencies have no underlying value: RBI governor

RUNE is used in governance, for staking, bonding for validator Nodes, and trading. The token is also used as an incentive in the system to reward Node operators and stakers who deposit their funds to liquidity pools.

For operations to be validated on the network, it requires two-thirds of validator Nodes to secure the cross-chain bridge that enables the exchange of non-native assets. To ensure that the system of validation works securely, THORChain uses Tendermint.

Also Read | Ukraine using Bitcoin to crowdfund war against Russia: Report

The THORChain network is secured through the Proof of Stake protocol and Tendermint, a form of BFT. The network is built on the Cosmos SDK, which operates on Tendermint.

Tendermint is a novel type of Byzantine Fault Tolerant protocol. It secures the cross-chain bridges by ensuring the validity of Nodes and all operation on the network.

Also Read | What is VeChain VET? What makes it unique?

THORChain offers liquidity for traders and instant finality for all operations on the network while reducing the risk of impermanent loss. Users can easily exchange some of the top cryptocurrencies from various networks in a decentralized system with a user-friendly interface.

Also Read | Here’s an SIP like recurring buy plan for crypto assets

THORChain allows a frictionless user experience as it provides non-custodial exchange services with a wide range of supported cryptocurrencies. With such technical capacity and innovative technology, THORChain could become one of the leading DeFi projects.