ThorChain is a decentralized liquidity network with an interoperable blockchain that allows cross-chain token swaps in a non-custodial manner.
THORChain is a decentralised cross-chain liquidity protocol based on Tendermint & Cosmos-SDK and utilising Threshold Signature Schemes (TSS). It does not peg or wrap assets, it simply determines how to move them in response to user-actions.
THORChain observes incoming user deposits to vaults, executes business logic (swap, add/remove liquidity), and processes outbound transactions. It is primarily a leaderless vault manager, ensuring that every stage of the process is byzantine-fault-tolerant. THORChain’s key objective is to be resistant to centralisation and capture whilst facilitating cross-chain liquidity. THORChain only secures the assets in its vaults, and has economic guarantees that those assets are safe. This has been reflected in RUNE price which is the native token of THORChain.
Technology
THORChain is a leaderless vault manager:
- 1-way State Pegs allow syncing state from external chains
- A State Machine to coordinate asset exchange logic and delegate redemptions
- Bifröst Chain Client to convert redemptions into chain-specific transactions
- A TSS protocol to enable distributed threshold key-signing
RUNE
RUNE is the asset which powers the THORChain ecosystem and provides the economic incentives required to secure the network. It has four key roles which are described below.
- Liquidity (as a settlement asset)
- Security (as a sybil-resistant mechanism, and a means for driving economic behaviour)
- Governance (signalling priority on-chain)
- Incentives (paying out rewards, charging fees, subsidising gas)
Roles
There are four key roles in the system:
- Liquidity providers who add liquidity to pools and earn fees and rewards
- Swappers who use the liquidity to swap assets ad-hoc, paying fees
- Traders who monitor pools and rebalance continually, paying fees but with the intent to earn a profit.
- Node Operators who provide a bond and are paid to secure the system
Let us review RUNE Price
RUNE Price Prediction
RUNE is currently trading above the support zone of $5.84. If it can consolidate above this support, we could start seeing a move towards $8.63, $11.23, $13.33, $15.43, $18.41 and $22.22. Failure to hold the support at $5.84 could lead to a drop towards $.39 and $3.01.
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