With more blockchains appearing, there is a greater need to develop "bridges" and links between these blockchains for efficient and lossless transactions. However, blockchains have been subject to centralization, causing hefty protocols. This has put limits on the potential of these blockchains. Here, we discuss how Thorchain and the Rune coin aim to tackle this persistent issue in the crypto industry. 

## What is Thorchain? 
[Thorchain ](https://thorchain.org/)was founded by anonymous pioneers at the [Binance Dexathon](https://medium.com/binanceexchange/binance-dexathon-845dc0cbfffe) of 2018. Shortly after raising almost $1.5 million at its IDO, Thorchain launched its first product, "BEPSwap," a decentralized exchange that facilitated BEP-2 tokens to swap on BNB. 

In essence, Thorchain serves as a decentralized liquidity protocol designed to pump more liquidity into the pools of the blockchain market. It can do this by guaranteeing a "trustless" and "custody-less" manner of operation. What does that mean? How does Thorchain guarantee security when there is no centralized body overseeing the transaction? 

Thorchain almost made a massive leap when it introduced the multichain chaos net (MCCN), one of the first cross-chain swapping protocols that would allow [Bitcoin](https://bitcoin.org/en/), Ethereum, Litecoin, and other crypto assets to be traded. 

However, the system went through utter chaos as it was made a target of several hack attacks, resulting in a colossal loss of $13 million. 

## How does Thorchain work? 

[Thorchain](/news/article/thorchain-explained) connects the two parties willing to engage in a trade/operation independent of a third-party facilitator. This improves security by eliminating the "middleman", on whose ethical compliance the entire trade is dependent. Thorchain claims that eliminating this intermediary makes the entire process much faster and more secure. 

[$RUNE](/news/article/thorchain-explained), or Rune coin, is the native token used throughout the Thorchain network. Rune coin is used to pay gas fees as well as to deposit value into the liquidity pool, against which traders will execute trades. This drives the value and utility of the Rune coin up. 

Along with making things easier for the users, Thorchain helps liquidity by providing great interoperability between different compatible and incompatible blockchains. It can pull this cross-chain accommodation through its multi-bridge mechanism powered by its decentralized network. 

This, in turn, obviously gives the end-user more options to choose from, as more blockchains can be easily accessed under the Thorchain mainframe. 

This is not all that Thorchain does. A smart contract drafted between two parties within the system will need to have actionable terms. This is where the AMM (Automated Market Maker) model and the CSDK (Cosmos Software Development Kit) come in. The AMM model allows smart contracts to automatically adjust to the appropriate exchange rates based on demand and supply. 

This makes it easier for there to be a more widely accepted term of trade as the terms are not being dictated by a central body, but rationalized by a fair algorithm. This also allows the induction of assets and blockchains that were previously not interoperable. This ties in well with the ultimate purpose of Thorchain – providing a liquidity protocol to the market. 

## What is Thorchain made of? 

- [BEPSwap](https://coinmarketcap.com/exchanges/bepswap/) is Thorchain's mainframe. It is the liquidity protocol that serves Thorchain itself and allows Thorchain to do what it set out to do. This very BEPSwap is the AMM mechanism within Thorchain that allows users to trade crypto in a custody-less manner. BEPSwap uses the CPMM (Constant Product Market Maker) model to calculate exchange rates and arrange liquidity pools. For reference, CPMM is the same model used by Uniswap and other major swapping protocols. 

- THORNode can be described as the dashboard on which the chain runs. It is an open-source platform that anyone can contribute to. It allows users to participate in the ecosystem as validators or Liquidity providers. 

- Rune coin is the main utility token for Thorchain, as it helps solidify the economic foundation for the entire network to operate on. 

- Cross-Chain Bridges are the pride of Thorchain's interoperability philosophy. Having said that, most chains on the market are now focusing on bridges since it is pointless to run a blockchain protocol without taking into account the diversity and compatibility issues that you may have to deal with. 

- Validators are nodes within the ecosystem. These work like modern-day auditors that are incentivized to ensure they uphold the system's honesty and security. 

Within the Thorchain ecosystem, there are several roles that the Thorchain community members are encouraged to take up. 

These are: 

- Liquidity Providers (LPs): As the name suggests, these are the token holders or shareholders of the Rune coin liquidity pools. The majority of the liquidity circulating within the blockchain's system is made possible because of their investment and their gain. 

- Swappers: These are traders actively or passively trading crypto assets ON the Thorchain network (on-chain traders). This could either be in exchange for Rune coin or other cryptocurrency tokens. 

- Traders: These are traders that do more demanding work. These traders look for undervalued or overvalued assets within the chain. Consequently, they trade for their gain with other chains, and this proves the utility of Thorchain’s AMM model. It also helps Thorchain attract off-chain trade, vital for its sustainable growth. 

## Conclusion 

With time, more blockchains seem to be specializing toward a main use case. This suggests that blockchains across the market understand that it is much more rewarding to establish themselves in one line of work than on multiple lines of work. Additionally, the costs and resources required to specialize across multiple domains are high, especially considering blockchain science is still relatively new. 

Even though Thorchain tries to adopt a decentralized and trustless mode of operation, it is important to note that other main chains, like Polygon, have established a name for themselves on security grounds. It would be difficult to steer audiences away from that use case. 

Even though Rune coin's market cap is nothing to shy away from, at about 400m, it's still far away from chains that offer similar utilities, such as [Polygon](https://polygon.technology/). 

While Rune coin's Thorchain seems to have travelled quite a bit on the crypto path, it's still not within the sights of the final destination. 

green iamge of runes with Runecoin crypto logo overlayed

How Rune coin helps Thorchain operate 

Recently, there has been an explosion of new cryptocurrencies and blockchains. It has caused the need for interoperability, as you have to send your tokens between different networks. One innovative decentralised platform which is solving this issue is [THORChain](https://thorchain.org/). 

The network offers a cross-chain infrastructure that allows you to swap tokens across multiple blockchains. It is designed to smooth out the peer-to-peer exchange of digital assets. Along with its interoperability, it maintains immutability and does not need wrapped tokens for swaps. 

Curious to know how the THORChain works? This article covers the blockchain’s unique features, the working mechanism, and crypto RUNE.  

## What is THORChain?

THORChain is one of the leading cross-chain architectures which offer a secure path for token exchange. It is an entirely decentralised platform that is compatible with eight popular chains. It can support swaps between [Bitcoin](/coins/btc), [Ethereum](/coins/eth), Avalanche, Binance Smart Chain, [Dogecoin](/coins/doge), Bitcoin Cash, [Litecoin](/coins/ltc), and Cosmos Hub. 

Leveraging its interoperability, you can swap the native tokens of its supported blockchains. It creates a frictionless experience and is used for various [DeFi](/news/article/what-is-a-defi-token) needs. 

In the beginning, THORChain was deployed on the [Cosmos network](/news/article/cosmos-crypto-explained). However, in April 2021, the network introduced an update that transformed it into an independent blockchain. Its mainnet provides an environment where non-compatible currencies can be exchanged without intermediaries. 

The blockchain also provides you with more liquidity. Because of this, its network poses a more secure option than the various centralised and decentralised exchanges.

In addition, you can also earn yields on the network. It has liquidity pools where you can deposit your assets and gain profits. The THORChain DEX brings you [crypto lending](/news/article/crypto-lending) services too. It also allows you to secure digital asset funding almost instantly. 

## How does the THORChain work?

THORChain is a cross-chain DEX protocol that works like an Automated Market Maker (AMM). Its mechanism involves Tendermint software, Threshold Signature Scheme (TSS), and the Cosmos SDK. 

It follows the Proof of Stake (PoS) consensus mechanism. It involves validators [staking](/news/article/what-is-staking-crypto) their RUNE tokens in the network to validate transactions and run the nodes. Among these, the operative nodes are also responsible for creating liquidity pools.
 
The blockchain works with the same principle as the Bancor DEX. It includes the pool liquidity ecosystem where users deposit their cryptocurrencies. The pool also includes the native token of the chain, which is RUNE. Then the protocol behind it uses algorithms to evaluate the value of the assets against RUNE.

The process facilitates the exchange of non-native tokens. So, for instance, when you swap Bitcoin for Ethereum, the protocol exchanges BTC with RUNE first. Then it moves on to swapping RUNE with Ethereum. 

This double-swapping process allows instant completion of transactions. Besides, it enables non-custodial exchanges to work freely with the THORChain protocol.

## What are the benefits of using THORChain?

One of the main goals behind the creation of THORChain is to offer deep liquidity to the users. It was built on the premise that centralisation removes economic safety from exchanges. That’s why there needs to be decentralised exchanges that offer more [economic security](/news/article/cryptocurrency-and-the-economy) because of locked assets. 

The liquidity of THOR, along with its cross-chain abilities, makes it an exceptional choice for users. It allows them to swap tokens back and forth between different blockchains. Moreover, it does not need intermediaries for swapping, keeping the system swift and secure. 

In addition to that, you can be part of different liquidity pools on the network. It allows you to earn yields on your funds and get crypto loans. 

Overall, the THORChain blockchain provides a single interactive interface from which you can securely access multiple assets. It not only offers interoperability but also has features like crypto lending, yields, etc.

## THORChain ecosystem
 
![thor1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/thor1_18f2cb48bf.png)

[Source](https://thorchain.org/ecosystem)

The network ecosystem involves a range of different decentralised applications (DApps). According to the THORChain website, there are a total of 41 projects offering various services to its users. These include both THOR’s own as well as third-party apps.

The list of DApps involves various self-custody wallets like Trust, Edge, and ThorWallet. It also introduces digital asset trading platforms like ShapeShift DAO, [THORSwap](/news/article/what-is-thorswap), and Rango Exchange. 

You can also get analytical insights on the platform with the projects like THORChain explorer, THORCharts, and Nansen Portfolio. Other categories include NFT, Launchpad, Support, Community, and more.

## THORChain crypto (RUNE)

RUNE token is the native crypto in the THOR network. It plays a crucial role in the cross-chain exchange of different tokens. It serves as a settlement asset and offers deep liquidity. The high liquidity RUNEs provide you with economic safety on the network. Due to its mechanism, you do not need wrapped tokens or several cryptocurrency pairs.

Crypto is also used as the governance token on the network. When you use crypto, you will gain governance rights for choosing your liquidity pool. The network also uses RUNE to provide incentives to the users. 

## RUNE tokenomics and price

The economics of the THORChain crypto is reasonably straightforward. According to [CoinMarketCap](https://coinmarketcap.com/currencies/thorchain/), the max supply of the tokens is 500,000,000, from which around 327,056,566 RUNEs are in circulation. The project's market cap is more than $500 million.

![thor2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/thor2_21cbd803b0.png)
 
[Source](https://thorchain.org/)

It is designed to lock RUNE's $3 against each $1 of the non-native assets in the liquidity pool. The network's total value-locked (TVL) is $132,570,726.

As for the price of the coin, it directly depends on the usage of THORChain. Currently, one RUNE is priced at around $1.67, with a trading volume of $52,092,701 in the past 24 hours. 

## THORChain price prediction 2023, 2025, & 2030

According to the forecast from [DigitalCoinPrice](https://digitalcoinprice.com/forecast/thorchain), RUNE shows bearish long-term trends. Its data suggest that the coin will likely capitalise on its current price and maintain an average of $3.28 in 2023. In addition, the coin may hit the $6 mark in 2025. However, until 2030, its price will be around $17, even less than its current all-time high value. 

On the other hand, data from [PricePrediction.Net](https://priceprediction.net/en/price-prediction/thorchain) shows slightly bullish trends. It predicts that the THORChain crypto may reach the maximum of $2.95 in 2023, whereas it will likely average $2.62. Moreover, in 2025 its price may grow to $6.57, and it may average around $5.54. Meanwhile, till 2030, RUNE’s price may cross the $30 mark and will likely average $33.81.

## Closing thoughts 

THORChain network is a unique take on DEX. It follows the AMM model and is backed by high liquidity, providing enhanced security. It is an all-in-one platform where you can perform multi-currency exchanges frictionlessly. Besides, it gives you access to the most popular currencies like BTC, ETH, and DOGE. 

Meanwhile, the platform is still seeing growth. Many third-party applications are becoming a part of THORChain, which will help the RUNE crypto to grow as an investment.


Thorchain logo on blue image of lightening strike on mountain

THORchain Explained 

[THORSwap](https://thorswap.finance/) 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.

## History

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.

## Features

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](/news/tag/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](https://docs.thorswap.finance/thorswap/thorswap-products/thorswap/cross-chain-dex-aggregation/ethereum-dex-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.

## THOR Tokens

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](https://coinmarketcap.com/currencies/thorswap/), 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.

## Conclusion

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.
 


Latest Moni

latest Thorchain crypto news

Read the latest Thorchain crypto news at Moni Talks

How Rune coin helps Thorchain operate

THORchain Explained

What is THORSwap?