THORChain: everything you need to know about RUNE

What is THORChain?

THORChain is a decentralized liquidity network designed to exchange crypto assets across different blockchains. It allows users to swap tokens directly between networks like Bitcoin, Ethereum, and more, without the need for a central intermediary. This makes it easier for users to trade different coins in a safe and efficient manner.

How does THORChain work?

THORChain works by connecting liquidity providers and traders through so-called liquidity pools. Users can add tokens to these pools to provide liquidity. In return, they receive rewards. Through an advanced mechanism called 'continuous liquidity pool,' users can always trade, even during large price changes, without the prices changing dramatically.

The RUNE token

The native token of THORChain is called RUNE. This token plays an important role within the ecosystem, as it is used for governance, as collateral, and for facilitating swaps between different blockchains. RUNE also serves as a reward for liquidity providers.

The technology behind THORChain.

THORChain uses a technology that allows different blockchains, such as Bitcoin and Ethereum, to communicate with each other. This is done through a special system that enables 'cross-chain swaps'. This allows you, for example, to exchange Bitcoin for Ethereum without needing a central exchange.

The THORChain ecosystem.

The ecosystem of THORChain mainly consists of traders, liquidity providers, and nodes. Traders perform swaps, liquidity providers ensure the necessary liquidity to make these swaps possible, and nodes maintain the network and validate transactions. In addition, there are cross-chain integrations with popular blockchains such as Bitcoin and Ethereum.

Benefits of THORChain

• Decentralization: No central party managing the trade.
• Interoperability: Support for different blockchains, enabling trading between networks.
• Safety: Liquidity providers are insured against losses due to price volatility through a mechanism that minimizes impermanent loss.

Disadvantages of THORChain

• Complexity: It can be difficult for beginners to understand how the system works.
• Risks: Although there are measures against impermanent loss, liquidity providers remain exposed to risks, especially during large price fluctuations.

Who is the founder of THORChain?

THORChain was founded by an anonymous team of developers. This choice for anonymity was made to keep the network completely decentralized and to avoid dependencies on individuals. John-Paul Thorbjornsen (often referred to as JP Thor) is associated with THORChain as a key figure.

Expectations for the coming period.

Experts expect a minimal price of €16.11 in 2026 and a minimal price of €53.28 in 2031.

Frequently asked questions