Overview
THORChain is a decentralized cross-chain liquidity network that enables native asset swaps between blockchains without wrapping tokens. Launched in 2019, it lets users swap BTC, ETH, and other native assets directly. Its RUNE token acts as the settlement asset between pools.
How It Works
THORChain uses pools of paired assets, with RUNE as a common quote asset that connects pools on different chains. A swap between two non-RUNE assets routes through RUNE, and the network maintains continuous liquidity across chains. Validators and their nodes process and secure cross-chain transactions.
Token & Funding
RUNE is the network's settlement and staking token, and it is also required as bonding collateral for validators. The protocol was not VC-funded; RUNE was distributed through a community-driven launch. Fees and liquidity incentives are paid in RUNE and pool assets.
Risks & Considerations
THORChain has suffered multiple exploits and security incidents since launch, including significant fund losses. Cross-chain validation is complex, and network halts have occurred. Users should understand that swaps on THORChain involve its own validator and security model, distinct from wrapping-based bridges.