Introduction to THORChain (RUNE)

THORChain (RUNE) is a decentralized liquidity protocol that enables users to seamlessly swap cryptocurrency assets across various networks without losing full custody of their assets. One of the most significant innovations in the decentralized finance (DeFi) space is the automated market maker (AMM) model. However, most AMMs allow trades to occur within a single blockchain network. THORChain solves this limitation by enabling cross-chain swaps using its AMM-based protocol built on the Cosmos software development kit (SDK).

Founders and Development

THORChain was created by a team of developers during the Binance Dexathon in 2018. The founders and developers have largely remained anonymous, allowing the THORChain community to drive the project's public-facing image. The project raised $1.5 million in an initial DEX offering (IDO) in July 2019 and has since launched its multichain chaosnet (MCCN) in April 2021, enabling cross-chain swaps between various assets.

How THORChain Works

THORChain supports an ecosystem of products and services that integrate its cross-chain infrastructure, such as THORSwap, the first multichain DEX using THORChain's network as a front-end interface. Swaps on THORChain are made possible by its continuous liquidity pool (CLP), in which RUNE is used as an intermediary for every swap.

There are four main roles for THORChain participants:

1. Liquidity providers (LPs): LPs provide assets to liquidity pools in return for block rewards and swap transaction fees.
2. Swappers: Swappers are users who trade between various crypto assets on THORChain.
3. Traders: THORChain relies on arbitrage traders who seek out assets that are undervalued or overvalued on THORChain as compared to their market prices on other exchange platforms.
4. Node operators: Node operators bond a set amount of RUNE to support the network and participate in THORChain's proof-of-stake consensus mechanism.

RUNE Token

RUNE powers the THORChain network and serves as the second token that users deposit in liquidity pools to execute trades against. It is used to pay fees, provide governance, and secure the THORChain network. Node operators must bond a certain amount of RUNE according to the value of assets in the network's liquidity pools, driving additional demand for RUNE.

Originally, there was a maximum supply of approximately 1 billion RUNE tokens, but the supply was reduced to 500 million in 2019. After this token burn, the distribution of tokens was allocated for various purposes, including service nodes, operational costs, the community, and the team and advisors.

In summary, THORChain (RUNE) is a decentralized liquidity protocol that enables cross-chain swaps using its AMM-based protocol. With the support of an ecosystem of products and services, it allows users to seamlessly swap assets across various networks. The RUNE token powers the THORChain network and serves various purposes, including paying fees, providing governance, and securing the network.

THORChain Price Analysis

As of November 24 2024 THORChain has a marketcap of $1.9B. This is {{percentagefromath}} from its all time high of $20.87. In terms of its tokenomics, there's a total supply of 415M with 82% currently outstanding. Keep in mind THORChain has a fully diluted value of $2.3B which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.

Summarized in part by ChatGPT 4 and Claude