The Sleeping Giant, 30x token
Overview of THORChain
THORChain is a decentralized cross-chain automated market maker (AMM) exchange that allows users to trade spot tokens across blockchains. It enables traders to swap tokens across various Layer 1 blockchains without taking on counterparty or custody risk (for example, a trader could swap spot ETH for spot DOT without ever using a centralized exchange).
Almost all of the disclosure around decentralized exchanges (DEX) refers to intra-chain trading on exchanges like Uniswap, Sushiswap, Curve, and Serum. THORChain is novel because it supports native tokens across many chains, and is uniquely positioned to deliver on the original promise of decentralized exchange between any asset.
A powerful by product of THORChain is that protocol teams can build on any THORChain-integrated blockchain and easily kickstart liquidity from other crypto ecosystems. For example, one of the primary reasons teams choose to build on Ethereum today is that they can launch a token on SushiSwap or Uniswap with immediate liquidity. Now, if a protocol team determines that Polkadot or Solana is better suited for their specific needs (e.g. high throughput and low latency), they can launch on those blockchains. Using THORChain, the new protocol can tap into the liquidity of the Ethereum ecosystem. This is not yet fully appreciated by the market. THORChain levels the playing field across smart contract platforms.
RUNE Token Economic
RUNE is the native token of the THORChain network. The network remains secure based on the relative balance of RUNE to other assets in the system. For every $1 of a native asset in the network, LPs must pool an equivalent $1 of RUNE to the corresponding CLP, and nodes in the network must bond $2 of RUNE to secure consensus. This incentivizes node operators to operate the network honestly, as the amount of their bond that can be slashed is always greater than the value of assets in the liquidity pool; censorship or theft is strictly unprofitable. The amount of RUNE in the network therefore aims to be balanced 67%-33% between nodes and LPs. The network is designed to incentivize a balance of $3 of RUNE for every $1 of other assets in the network
When the system is out of balance, the network shifts block rewards and network fees in order to incentivize the node operators and LPs to restore the balance — this mechanism is referred to as the “Incentive Pendulum.”
For example, if more than 67% of the RUNE in the system is bonded to node operators, the protocol will divert more rewards to LPs. If more than 33% of the RUNE in the system is in liquidity pools, the protocol will divert more rewards to node operators.
The top 5 Ethereum-only DEXs by market share have on average collectively traded $2 billion a day over the last 30 days (compared with $4 billion on Coinbase) and these DEXs trade exclusively ERC-20 assets. As THORChain adds support for all the major chains over the coming months, THORChain could overtake many centralized exchanges as the venue for best execution.
As more trades route through THORChain, RUNE becomes more valuable. RUNE holders can participate in the revenues of the system by bonding their RUNE or becoming LPs. This directly links the value of RUNE to the trading volume and liquidity of the THORChain decentralized exchange.
THORChain Community
The THORChain community understands the power of memes in helping a community develop a shared identity. The first time we heard the name THORChain we thought it was silly, but overtime the team has demonstrated that this was a deliberate and thoughtful decision. Due to the association with Norse mythology, there is a rich cast of characters and meme content open for anyone to use. Having easily relatable memes can help spread awareness of a project.
Since launching, THORChain has attracted a large community of third-party teams building products to help push the ecosystem forward. Some examples include:
THORChain Explorer by Pusher Labs — THORChain.net is a block explorer for the THORChain project. The explorer provides a well-documented API, a summary of network stats, and transaction histories.
XDEFI a MetaMask like browser wallet that will support chains connected to THORChain.
BEPSwap Simulator simple tool to assist with calculating pool prices on THORChain
THORChain Help One of the biggest challenges the THORChain team has faced is explaining the product to non-technical users in an easily digestible way. Luckily, a third-party team built a simple THORChain explainer that describes the system for non-technical users.
MIDGARD API a public API to query THORChain, on which community-built dashboards, such as THORChain.net (network activity monitoring) and Runestake.info (LP returns tracking), are built.
XChainJs a set of JS libraries for building on top of THORChain
The THORChain community is one of its greatest assets today. The THORChain team has done a great job of cultivating the culture. They collectively embody the ethos of a decentralized network. They also have an actively updated “planned obsolescence” date, which signifies the point when the core developers will transfer ownership of the code base to the community to maintain. This is currently set for July 2022
THORChain : The Problem Solver
DeFi is taking over the current financial system, that’s been established already. The problem is with the number of networks being created and the DeFi ecosystems being built on top of them. To name a few: Ethereum, Binance Chain, Solana, Polkadot.
If you’ve interacted with Ethereum DeFi you’ve probably used MetaMask, but what if you wanted to then use a DeFi application built on Solana? There is no easy all-in-one place to send your assets from one chain to another and perform DeFi interactions.
Solution : XDEFI Wallet
XDEFI’s goal is to connect all useful technologies, networks and communities. The idea behind XDEFI is to have an All-in-One Crypto/DeFi wallet where you can hold all of your assets, interact with different protocols and swap assets between chains without ever needing to touch a centralised venue.
To give you an idea of how exciting this is: what attracted us most to Oxygen’s wallet application is the fact that you could hold SPL & ERC tokens in one place, change from one chain to another as well as use some DeFi features such as swapping.
Imagine this but with every single blockchain!
Everyone’s favourite hardware wallet is Ledger, they’re working on an integration with it as well. Guess which exchange they will be using to facilitate cross-chain swaps? You guessed it, ASGARDEX.
ASGARDEX Integration
In order to swap assets from one chain to another, XDEFI wallet will be using ASGARDEX — THORChain’s interface for cross-chain swaps.
The DeFi takeover is a question of when not if anymore and THORChain is securing a primordial place for itself by having built prime technology, soon it will have a network effect to protect it, similar to how Ethereum still sits on the throne of smart contracts chains.
Technical Insight — RUNE
In this technical perspective, I won’t cover about the potential target on the long run based on this technical analysis because if we do, it will be very difficult for us to identify the top because of the lack of historical data. All I want to cover is only the possible movement from the swing trade perspective which could be applied for the next 1 or 2 months so it will be useful for your decision for DCA strategy.
Price is now trending at -70% below the All Time high which is a pretty low level as we see that peak at $21. However, I still see the possibility for more lower low structure during this correction as the majority of cryptocurrencies are having a huge downside pressure right now which is led by Bitcoin.
The next major support which is also the .786 Fibonacci retracement level is around $4.7 and I see this area as the ideal entry position for DCA position which the bottom of this movement could be at $3 which is the liquidation level for this currency.
The original target on the mid term is align to the previous ATH around $21 and it could surges more to the upside during the next altcoins season.
