Is THORChain (RUNE) Undervalued? with Erik Voorhees and Chad Barraford
Nov 28, 2023
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Join David as he explores THORChain, a liquidity protocol that allows swapping between BTC, ETH, and more without intermediaries. Erik Voorhees and Chad Barraford discuss THORChain's mission, staking and security, the value of Rune token, and the roadmap for the project.
THORChain is a decentralized exchange (DEX) that enables cross-chain swapping between different chains like Bitcoin, Ethereum, AVAX, BNB, Doge, and Litecoin.
THORChain's economic security model ensures the safety and integrity of assets being secured, while the streaming swap feature provides efficient capital usage and cost-effective trades.
Deep dives
Thorchin: A Transformative Cross-Chain DEX
Thorchin is a decentralized exchange (DEX) that enables cross-chain swapping with layer one assets. Unlike other DEXs, Thorchin can transact between different chains like Bitcoin, Ethereum, AVAX, BNB, Doge, and Litecoin. This cross-chain capability is a game-changer and addresses a long-standing issue in the crypto space. Thorchin operates on its own Cosmos-based blockchain with a set of validators. These validators observe the addresses maintained by the network on respective blockchains, allowing for secure and efficient swaps. The unique economic security model ensures that the value of the assets being secured is always higher than the value put at risk. With Thorchin, users can trade assets directly without intermediaries and enjoy low fees and efficient price execution, thanks to the streaming swap feature. Thorchin has already achieved significant trading volume, with 2% of the total Bitcoin volume globally happening on the platform. Its impact on the crypto landscape is profound, as it enables decentralized spot trading of Bitcoin, which was primarily happening on centralized exchanges. Thorchin has a roadmap focused on integration partnerships with wallets and other DEXs to expand its reach. It also plans to introduce limit orders and order books to cater to traders and further enhance its offerings.
Thorchin's Impact on Crypto Trading
Thorchin fundamentally transforms the crypto trading landscape by providing a decentralized spot exchange for Bitcoin and other major assets. It eliminates the need for intermediaries, allowing users to trade directly between different chains. By achieving 2% of the total Bitcoin trading volume globally, Thorchin has already established itself as a major player in the market. Its economic security model ensures the safety and integrity of assets being secured, and the streaming swap feature provides efficient capital usage and cost-effective trades. Thorchin's impact goes beyond just facilitating cross-chain swaps. It brings decentralized finance (DeFi) capabilities to assets like Bitcoin and enables the integration of Bitcoin with other DeFi protocols. Traders and users who have long been reliant on centralized exchanges now have a decentralized and secure alternative to trade various assets directly.
The Unique Features and Advantages of Thorchin
Thorchin's main advantage lies in its ability to perform cross-chain swaps, allowing users to trade assets across different chains like Bitcoin, Ethereum, Doge, and more. This capability is made possible through Thorchin's own Cosmos-based blockchain and its set of validators that observe respective blockchains. In addition to enabling cross-chain swaps, Thorchin offers economic security by ensuring that the value of secured assets is always higher than the value put at risk. The streaming swap feature allows for efficient capital usage and fast trades, combining the benefits of instant execution and low fees. Thorchin's impact extends beyond its own platform, as it opens up new opportunities for wallets and other DEXs to integrate and offer cross-chain trading capabilities. By expanding its network and introducing order books and limit orders, Thorchin aims to provide a comprehensive and user-friendly trading experience for both casual users and professional traders.
How to Get Involved with Thorchin
For those interested in learning more about Thorchin, its official website (thorchin.org) and Twitter account (@thorchin) are valuable resources. The Thorchin community is also active on Discord, where users can connect, ask questions, and engage with the project. Thorchin is seeking integration partnerships with wallets and DEXs to expand its reach and provide users with access to cross-chain trading capabilities. If you are a wallet or DEX looking to integrate Thorchin, you can reach out to explore collaboration opportunities. The project encourages everyone to learn about Thorchin's transformative technology and its potential to reshape the crypto trading landscape, even if they do not intend to invest in its native token, Rune. Thorchin's impact on the decentralized spot trading of major assets like Bitcoin offers exciting prospects for the entire crypto industry.
0:00 Intro 3:30 What is Thorchain 7:10 Erik and Shapeshift 10:20 How it Works 13:40 Is this a Bridge? 17:00 Staking and Security 20:00 Rune 28:45 Bitcoin and Ethereum 32:20 Latency 36:00 The Bull Case for Thorchain 38:40 Specialization 40:40 The Roadmap and Community 44:00 Get Involved