Everything you need to know about THORSwap Finance and Token

Updated on 4 November, 2022 2:47 PM
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    Another Swap?! The crypto space indeed provides us with a multitude of options. Like any other market, we have several options, providing a better user experience and a strong motivation for the developers to keep themselves updated. THORSwap Finance is a decentralized exchange aggregation platform that functions across multiple chains. It operates on THORChain’s cross-chain liquidity protocol and is one of the leading interfaces for several of THORChain’s services, such as Synthetic Assets and THORNames.

    History of THORswap

    It was launched in 2020 on THORChain’s single-chain chaosnet (SCCN) as BEPSwap. With this, users were allowed to swap between THORChain’s RUNE token and BEP-2 assets. Chaosnet may be defined as a local area network technology. It includes two unique but relatable technologies. It was first introduced by Jack Holloway and Thomas Knight in 1975. 

    For people wondering how BEPSwap changed into THORswap, there wasn’t any significant change except for the platform launched on THORChain’s multi-chain chaosnet (MCCN). The platform supports exchanges across several platforms, including Ethereum (ERC 20), Cosmos, Dogecoin, Bitcoin Cash, Bitcoin, Binance Chain (BEP2), Avalanche, Litecoin, and THORChain.

    What is THORSwap Finance?

    THORSwap Finance is a DEX interface to THORChain's cross-chain liquidity, it provides liquidity and facilitates the trade of native assets in a decentralized fashion. The dashboard displays selected THORChain-related key metrics such as total liquidity, total volume, total pooled RUNE, liquidity over time, trading volume, total active bond, 24H volume, liquidity APY, etc.

    Liquidity providers have the option of adding to each of the respective AMM liquidity pools, either symmetrically or asymmetrically. Each consists of 50% paired crypto assets and 50% RUNE. 

    What is THORChain?

    THORChain is a non-custodial and permissionless cross-chain liquidity platform that facilitates interoperable blockchain communication. This is facilitated by building bi-directional bridges, between blockchains. The system utilizes CLPs for trading instead of the traditional order book method. It is based on the open-source Tendermint blockchain protocol. The software allows developers to build decentralized applications (dApps) and customized blockchains. Examples include Tera, Oasis Labs, Binance DEX, etc.

    It utilizes the Byzantine Fault Tolerance (BFT) consensus. However, this system relies on its users to address cyber attacks. To safeguard against such attacks, the system utilizes the Proof-of-Stake (PoS) algorithm. The system primarily runs on nodes. They have three major functions: 

    1. To bond RUNE tokens
    2. To produce blocks, and
    3. To work as a vault.

    Every three days a new node is created. Nodes are automatically shut down if malicious attacks are detected. It utilizes the Cosmos ecosystem, which is common to Binance Smart Chain (BSC). 

    THORChain Token RUNE

    Rune is the native token of THORChain. Validators can run network nodes and validate transactions on the exchange, via these tokens. It is a BEP2 asset. BEP2 is a technical standard for issuance of tokens on the Binance Chain. Users increase their chances of becoming a validator by locking more RUNE tokens. Assets are bonded to RUNE in a 1:1 ratio. It is also utilized as a reward, compensating validators and liquidity providers. THORChain enables voting in DAO (Decentralized Autonomous Organization), through RUNE tokens.

    THORSwap Token THOR

    THORswap’s native token is THOR which serves several purposes such as a membership token, utility, governance, etc. There is a maximum supply of 500,000,000 THOR tokens which is expected to complete distribution till 2025. 65% of THOR will be within the community, which will be distributed as follows:

    1. Community incentives (50%)
    2. Public (10%), and 
    3. Airdrop (5%).

    THOR emissions are expected to increase after the first four years of its launch in April 2021. 

    THORSwap Utility Features

    • THORswap revenues are shared within the community.
    • Permissioned access to apps
    • THORswap protocol is governed in a decentralized manner.
    • Funding of community projects.

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