Thorchain is a cross chain decentralized liquidity network. Investors come to the Thorchain Decentralized Liquidity Protocol to deposit native assets in to the liquidity pools in the Thorchain to earn yield. The ThorChain Network is 100% autonomous and decentralized.
The v0.1 from the Thorchain is focused on propelling the community’s grand vision of developing towards all things THORChain. The THORChain welcomes any and all chains and they are willing to evolve with changing market trends. They work as the attention driving funnel to THORchain and all the bridged assets supported by the network.
They are focused on being relevant in their marketing attempts. They create marketing funnels that welcomes tribe’s people from fellow chains.
The contributors of the THORChain navigate the social channels and they focus on creating new cross-community connections by creating bridges. Their major mission is to play the role of the bridge helping to improve on collaborations and ultimately improving on funneled and segmented traffic to different Dapps and Initiatives.
The Thorchain brand has an economic design and being a multi chain protocol it is used to dynamically scale with assets. RUNE is designed to be most liquid in its own ecosystem, and therefore its utility creates value for the network.
Liquidity Providers on the ThorChain are more than willing to pool their assets in to the decentralized liquidity in exchange for yield. The solvency factor is black and white on the network and anyone will be able to verify the solvency of the onchain network.
Liquidity pooling in Thorchain is done more than by just considering the price action in the network. There are several tools that are community built. These tools are the reason for where Thor is where it is today.
Analytics is used to analyze the historical pool earnings and to stimulate future earnings. Arbitraging is used to view arbitrage opportunities between RUNE pools. Dashboard, Dev Library, Explorer, Marketing, Simulation, Swap/Pool, Telegram Bot, Tracking, Twitter Bot, Wallet and several other factors are considered.
The Incentive Pendulum balances the rewards for node operators and liquidity providers, thus ensuring the node is safe. The Incentive pendulum ensures that there is not too much capital in liquidity pools and not too much bonded nodes. This is important because if there is too much capital in liquidity pools the network is unsafe and if there is too much capital bonded by nodes, the network is inefficient.
The balancing system of Thor states that it can be in one of the 5 states like unsafe, under-bonded, optimal, over-bonded, or inefficient. The optimal state is for it to be 50% capital bonded and 50% capital pooled.
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