THORChain Price

What Is THORChain?

THORChain is a blockchain that operates as a Layer 1 cross-chain decentralized exchange (DEX). As a decentralized cross-chain liquidity protocol, it swaps native cryptocurrencies between blockchains in a noncustodial manner without wrapping or pegging assets. THORChain uses a Continuous Liquidity Pool (CLP) to facilitate the liquid exchange of assets across several blockchains, including Bitcoin, Ethereum and Litecoin. 

What Is RUNE?

RUNE is the native token of THORChain and the asset that powers it. It’s used as a pairing token to swap assets between blockchain, and also to pay for gas fees. Besides being the utility token for all transactions within the network, it can be also used for governance and to secure the blockchain.

RUNE price reached its high on May 18, 2021 at $20.31, with a market cap of $4.89 billion. It’s since dropped to just below $3 following the bearish conditions of the current crypto market.

Who Is the Founder of THORChain (RUNE)?

An anonymous team of developers created THORChain at a Dexathon (decentralized exchange coding competition) in 2018. It was created because centralized exchanges were deemed complicated to use, with low liquidity and slow transaction speed. 

This project has no founder, and thus none of its 18 developers has any title. However, development updates are posted weekly on their Medium platform, and treasury reports are published monthly. 

What Is RUNE Used For?

RUNE has four essential roles on the THORChain network: Settlement asset, network security, governance and incentives.

Settlement Asset

RUNE is used as a settlement asset for THORChain’s liquidity pools, used in a 1:1 ratio to facilitate token swaps between two blockchains.

Network Security

THORChain uses a “Proof of Bond” to prevent a network takeover. Node validators must bond twice as many RUNE as the asset added to a pool. The RUNE are then used as collateral to discourage node validators who may be contemplating stealing from the network.

Governance

RUNE token holders can vote to choose which assets are listed or which chains are delisted. The pool with the greatest RUNE commitment is given higher priority.

Incentives

RUNE is used to pay swap fees and block rewards to liquidity providers (LPs) and node operators on a set emission schedule. A fixed network fee and a dynamic slip-based fee are charged on all swaps. 

How Does THORChain Work?

THORChain is built using Cosmos SDK and a proof of stake (PoS) consensus algorithm based on Tendermint. THORChain uses an automated market maker (AMM) model, meaning it offers deep liquidity and low transaction fees.

There are four roles on the network:

1. Node operators: These are anonymous, in order to encourage decentralization and to allow them to receive rewards for securing the system. To be a node operator, a user must bond twice as many RUNE tokens as the tokens added to the pool as collateral.

2. Liquidity providers: These LPs add liquidity to pools and earn fees and rewards.

3. Arbitrage traders: They monitor and rebalance pools continually, buying assets at low prices to make a profit.

4. Swappers: They use liquidity to swap assets on connected chains.

Asset swaps are possible because of liquidity pools made available by LPs and secured by THORNodes. The Continuous Liquidity Pool (CLP) then allows for frictionless transactions at transparent prices across multiple blockchains without relying on oracles. 

When users swap two assets on THORChain, such as Bitcoin (BTC) for Ethereum (ETH), they are actually swapping between two pools: The BTC/RUNE pool and the ETH/RUNE pool, as RUNE is the base token used to pair with each asset. THORChain automates the swap for the user, so that the user doesn’t have to own any RUNE. This reduces any intermediary risk created by swapping in centralized exchanges, while ensuring constant liquidity within THORChain. 

With CLP, the arbitrage traders in THORChain are incentivized to regulate market prices and ensure their accuracy. If the price of RUNE rises, the price of BTC relative to RUNE in the RUNE/BTC pool will fall. This will arbitrage traders to buy the cheaper BTC from the THORChain pool, thereby adding RUNE back to the pool — which will raise the price of BTC to match the price of RUNE. Hence, prices of different assets are kept at a fair rate against each other within the pools without the need for an oracle. 

Why Is RUNE Valuable?

The RUNE token is essential to the THORChain network because it’s a reward for LPs providing liquidity and THORNodes securing the network. RUNE is also used to pay for various network fees, which gives it a similar economic profile to ETH, the second biggest cryptocurrency in the world. 

With RUNE needed for countless functions within the network, its value will only increase as more users adopt the network.

What Makes THORChain Unique?

Swapping of Native Assets Across Blockchains 

THORChain is the only multi-chain DEX that enables token holders to swap their native assets without wrapping them. 

Highly Liquid Pools

THORChain facilitates efficient trade across multiple blockchains with its low number of pools. This is because all assets have to be swapped against its native token, RUNE, which makes THORChain more liquid than other DEXs. Each cryptocurrency pair has its own pool, thereby creating an innumerable amount of pools. 

No Oracles

With THORChain, traders and swappers can actually make transactions at a transparent, fair price without a centralized third party or oracle. 

Impermanent Loss Protection

LPs aren’t subject to any lock-in periods, and can even enjoy impermanent loss protection of up to 100% once they’ve locked their RUNE in the pool for 100 days.

How Many RUNE Are in Circulation?

RUNE launched with an initial maximum total supply of 1 billion, which was reduced to 500 million by October 2019. The reduction in total supply didn’t affect already distributed tokens, and its circulating supply is around 330.69 million. 

The RUNE tokens were allocated as follows: 

• 220.45 million to reward node validators and LPs

• 65 million for operational reserves, vested over three-and-a-half years.

• 60 million to the community reserves, also known as the RUNEVault.

• 50 million to the team and advisors, locked till the mainnet was launched, and then released in 20% batches every three months 

• 30 million to seed investors

• 70 million for pre-sale (private sale)

• 7 million for the IDO (although 20 million was offered in the sale, 13 million were unsold and later burned)

How to Store RUNE

RUNE can be stored in a hardware wallet, such as Ledger Nano, or an online wallet such as Trust Wallet. Note that there are three types of RUNE: Native RUNE, BEP2 RUNE and ERC-20 RUNE. You can upgrade your BEP2 RUNE and the ERC-20 RUNE to native RUNE through Trust Wallet.

Where to Buy THORChain (RUNE)

You can buy RUNE from any top crypto exchange, including Bybit.

How To Buy RUNE on Bybit

To purchase RUNE on the Bybit exchange, simply follow these steps:

1. Head to Bybit’s spot trading page (Home → Trade → Spot Trading).

2. Select the RUNE/USDT pair on the left side of the page.

3. Choose the type of order you’d like: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the amount of RUNE you wish to buy.

4. Click on Buy RUNE.

5. Once you’ve confirmed that your information is correct, click on Buy RUNE.

6. View your order details under Active on the web page, or Orders if you use the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT you’ve paid to buy RUNE.

3. Click on Buy RUNE.

4. Once you’ve confirmed that the information is correct, click on Buy RUNE.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

• Market Price: The order price need not be set.

• Limit Price: The order price needs to be set.

4. According to order types:

• Market Buy: Enter the USDT you’ve paid to buy RUNE.

• Limit Buy: Enter the number of RUNE you want to buy.

5. Click on Buy RUNE.

6. Once you’ve confirmed that your information is correct, click on Buy RUNE.

7. View your order details under Conditional on the web page, and All Orders → Current Orders on the Bybit app.

For more help, you can also visit the Bybit spot trading guide.