What is THORSwap?
THORSwap is a decentralized cross-chain exchange built on THORChain, a decentralized liquidity protocol. It allows users to swap multiple cryptocurrencies on different blockchains in a non-custodial manner. THORSwap also serves as a DEX aggregator to support a broader range of assets.
THORSwap’s history begins in April 2021 when it was built on top of MCCN - THORChain’s multi-chain chaosnet. This was a few months (July 2020) after BEPSwap launched on SCCN - THORchain’s single-chain chaosnet.
After its launch, the THORSwap exchange quickly became the leading decentralized exchange on THORChain, responsible for a majority of the protocol’s trading volume.
Within 14 months of its existence, it had processed 2.7 million transactions and $1.85 billion in volume, representing 20% of the total volume on THORChain.
Several features distinguish the aggregator from its competitors. Some of them include;
• Cross-chain swaps
It currently supports swaps for over 4,800 crypto assets across nine blockchains, including Bitcoin, Ethereum, Binance Chain, Cosmos, Avalanche, Dogecoin, Litecoin, Bitcoin Cash, and THORChain.
• Cross-chain DEX aggregation
As an aggregator, it taps into different liquidity sources to support a wide range of digital assets from multiple blockchains.
In August 2022, the exchange launched an Ethereum cross-chain aggregator, allowing users to swap between 4,800+ whitelisted ERC-20 tokens and its eight supported blockchains.
• Impermanent loss protection
Impermanent loss occurs when the price of an asset staked in a liquidity pool is different than if it were held outside a liquidity pool. The loss deters liquidity providers from providing liquidity.
The aggregator protects users from impermanent loss with an Impermanent Loss Protection program. The program protects liquidity providers from impermanent loss, ensuring they keep providing liquidity.
Launched in 2021, THOR tokens are the native utility and governance tokens of THORSwap. They also serve as incentives for trading activities and can be staked to receive vTHOR tokens.
vTHOR tokens are a representation of staked THOR. They allow stakers to earn 75% of THORSwap's revenue, among other benefits, including trading fee discounts. They can also be staked to receive daily rewards.
THOR tokens have a max supply cap of 500,000,000 million coins. They are to be issued to the public in four years.
According to Coinmarketcap, the coins are currently worth $0.1244 each. They are ranked 4,632nd largest cryptocurrencies in the world.
The coins are listed in several crypto exchanges, including CoinEX, SushiSwap, and THORChain. They, however, can't be bought directly with fiat money. Investors must first purchase other cryptocurrencies, ETH or BTC, and then move to an exchange that lists them and uses their ETH or BTC to buy them.
As of writing, THORSwap hasn't been in the market for long. However, it has quickly proven to be a cross-chain exchange worth watching out for with its great track record. It is already the leading decentralized exchange aggregator on THORChain. Its roadmap reveals that even more great things are on the way.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.