What is THORChain (RUNE)?
THORChain is a decentralized liquidity protocol that aims to enable the trading of crypto assets across various blockchains in a completely decentralized way.
No Third Party
THORChain seeks to let users simply swap one asset for another in a permissionless setting, without needing to rely on order books to source liquidity. Instead, market prices are maintained through the ratio of assets in a pool.
The THORChain protocol also powers a decentralized exchange (DEX) by the same name.
Like Uniswap or SushiSwap, the Thorchain DEX allows anyone to trade or lend their crypto assets by providing liquidity to an asset pool and, in exchange, earn a return on those assets.
THORChain uses an adaption of another DEX’s lending system, namely Bancor’s continuous lending pools, to facilitate trades.
In these trades, all assets are deposited in liquidity pools shared with one other asset, which is THORChain’s native token, RUNE.
THORChain’s team believes its protocol of cross-chain swaps is just the beginning. They hope to build a protocol for all of DeFi, offering borrowing, lending, and even synthetics services across various blockchains.