THORChain is a decentralized liquidity protocol that allows users to exchange crypto assets via networks. The native cryptocurrency of the project is RUNE coin. RUNE Coin was launched in 2019 from Binance DEX via IDO. The THORChain project has no official founder.
THORChain operates by four different mechanisms: developers, nodes, stakers and traders. THORChain has a user-oriented approach and aims to gather all transactions of crypto assets under one roof.
The broader goal of the THORChain team is to create decentralized liquidity and eliminate the need for centralized parties that can block access to funds or services from users.
The features of the THORChain project can be listed as follows:
- All fees generated by the platform are distributed to users.
- Network security is ensured by BFT Proof of Stake (PoS) consensus.
- Token burning strategy is adopted.
- Unique technologies such as cross-chain synchronization and trading coordination are used to eliminate the possibility of problems in cross-chain token swapping.
- In order to reduce the Temporary Loss problem, price determination technology suitable for price shift has been developed.
RUNE Coin is used in the fields of governance and security as well as being the base currency of the ecosystem. Other uses of RUNE Coin include:
- It can be traded and traded on different crypto currency exchanges.
- Staking revenues are distributed in RUNE Coin.
- THORChain DEX transaction fees are covered by RUNE Coin.
The advantages of RUNE Coin, which some investors find risky due to its volatility, are as follows:
- RUNE Coin is listed on all major and popular cryptocurrency exchanges.
- The transfer speed of RUNE Coin is quite high.
- Access to different blockchains is provided through a single link.
- Asset exchanges can be realized through a single link.
- Passive income can be obtained with simpler staking.
- The token burning strategy applied to protect the deflationary structure supports the prices.
- Liquidity can be reached without the need to give up ownership of crypto assets.
- RUNE owners can vote and submit proposals for change in decision-making processes that affect the future of the platform.
The fact that users store their RUNE coins in virtual wallets increases the likelihood of cyber attacks. The protocol is generally built on liquidity and blockchain integrations. Due to its narrow usage area, the project does not appeal to everyone. These are examples of the disadvantages of the RUNE project.
