The DeFi sector relies heavily on decentralized exchanges. However, great Ethereum and eBSC exchanges are still unable to perform cross-chain token swaps. THORChain is a first-of-its-kind decentralized exchange (DEX) that allows to trade assets on different blockchains. In this post, you’ll learn about the THORChain project’s essential features, how to use it, and how to buy Thorchain RUNE with crypto.
THORChain is a permissionless cross-chain liquidity technology that supports interoperability between blockchains. It’s a non-custodial blockchain liquidity marketplace that allows users to freely swap assets across numerous networks. THORchain accomplishes this by constructing bi-directional bridges connecting two blockchains. As a result, as a user, you have permissionless, non-custodial access to any asset on the network.
THORChain is not only a protocol but also a collection of technologies that users can take advantage of to solve a variety of problems in the DeFi sector. For example, the following are some key components of the THORChain project:
The RUNE coin is the THORChain network’s native coin. It can power nodes, with every node committing to one million RUNE bond to participate in the consensus process. The RUNE token exists on several blockchains, however, there’s also a mainnet version of it. THORChain cryptocurrency employs a Proof-of-Bond consensus mechanism, which is a modified version of Proof-of-Stake.
The THORChain developers saw centralized exchanges’ low-liquidity transfer processes as faulty and wanted to establish a better alternative. Hence, THORChain appears to be a cross-chain solution, allowing to swap any asset effortlessly regardless of its underlying blockchain. More crucially, users retain complete control of their possessions during the transaction.
THORChain also solves several concerns related to Decentralized Finance (DeFi) because it provides liquidity for computerized market makers through continuous liquidity pools. This way, THORChain eliminates the requirement for external price feeds or oracles.
The THORChain project has a few roles in the overall ecosystem that are worth mentioning:
As mentioned, THORChain is a Proof-of-Bond network, which means that it forms a link to be churned in. This bond underwrites the assets in the pools, not merely to identify a node (give them a voting seat). If a node tries to steal assets, their bond decreases by 1.5 times the value of the assets taken. Thus, the pools are restored.
While THORChain aims to be governance-free, several aspects of the protocol do rely on committed money to signify precedence. This is the case with the asset listing procedure, where a new asset might be offered as a pool every few days. The asset with the highest level of RUNE commitment is listed first in a queue of standby assets.
A fixed network cost and a dynamic slip-based fee apply to all RUNE exchanges: these guard against various attack routes, including denial-of-service and sandwich assaults on a pool. However, THORChain doesn’t go to great lengths to keep track of every drop of gas consumed. Instead, nodes can pay for gas using any of the base assets, such as BNB.BNB, ETH.ETH, BTC.BTC, and so on. Following the charging of fees and the subsidization of gas, THORChain calculates the block reward, splits it using the Incentive Pendulum algorithm, and distributes it to Bonders and Liquidity suppliers.
THORChain has no CEO, founders, or directors, but the developers publish transparent weekly updates on the project’s progress to the community. They aim to make minimal government decisions to maintain the system as decentralized as possible and instead rely on staked capital to drive the market. As a result, new assets promptly appear on the exchange, rendering many governmental infrastructure decisions obsolete.
The best DeFi and NFT wallet for THORChain (RUNE) is the XDEFI Wallet. XDEFI Wallet is built for the multichain era — the world’s only wallet with native Terra (LUNA), THORChain token, Ethereum (ETH), and Bitcoin (BTC) integrations. In addition, XDEFI is a decentralized wallet plugin for web browsers that allows people to quickly access the decentralized future.
Swapzone analyzes the best exchange rates, processing speeds, and user reviews every day to find you the best crypto swap services online. You can also trade multiple cryptos on the platform, providing an estimated exchange rate before you consent to a transaction. Here’s how to buy or trade RUNE-BEP2 tokens:
An exchange rate is the rate at which one cryptocurrency can be exchanged for another through a certain crypto exchange provider. Cryptocurrency exchange rates on Swapzone reflect current prices of crypto assets and are updated every 30 seconds for you to keep track of any market changes and fluctuations to profit when buying the dip or going with the best exchange rate and the lowest exchange fees. All cryptocurrency exchange providers have their own rates, which depends on supply and demand, mining rewards, costs and so on. See what else might affect the rate in our article on prices.
There are two types of exchange rates aggregated by Swapzone – fixed rates and floating rates. To receive the exact amount of crypto that is displayed at the beginning of the exchange and shield yourself against the market's volatility, opt for fixed-rate offers. If you're ready to take a risk and receive less or more than the sum displayed, go with floating-rate offers but bear in mind that floating rates may drastically change any second. You can refresh your memory on how to get the best exchange rate here.
Crypto transaction fees may vary depending on the network (Ethereum transaction fees tend to spike during the congestion on the network), your chosen cryptocurrency, an instant exchange provider as well as its transaction processing speed and internal policy. These fees may be relatively low but it’s crucial to know they may be imposed in the first place.
If you want to exchange cryptocurrency with the lowest fees, beware of the offers with a grey-colored “Transaction fees are not included” label displayed under the exchange rate. To avoid having to pay an unexpected amount of fees during the exchange, opt for those that do not have that label. Read our articles to learn more about how to exchange cryptocurrency with the lowest fees and find out which assets have the lowest transaction fees.
Transactions usually take from 5 to 30 minutes to be processed, especially if you choose currencies with speedy networks. However, there are several factors that may affect and slow down the exchange process, i.e. transaction volume, blockchain capacity, network updates, cryptocurrency itself and the capacity or chosen exchange platforms.
The processing may take longer due to the large transaction volume, congestion of the network, blockchain overload and market overload, technical issues or system failures, lack of liquidity or network maintenance.
The transaction may be also stuck if you forget to add a required Extra ID, mistake networks or use the wrong wallet for a chosen crypto asset. If you worry that the exchange processing is taking too long, please, contact us at [email protected] or via our live chat on the landing page.
To exchange, buy, sell or trade cryptocurrency and store your crypto keys safely and securely, you need a crypto wallet. Choosing the best cryptocurrency wallet is a question of preference and need. To learn more, read our guide on how to choose the best cryptocurrency wallet for your needs.
There are several types of wallets for different crypto assets and tasks. Software wallets, or hot storage wallets, are connected to the Internet and come in many forms: Web, Desktop, Mobile or Browser Extensions. If you want to build a large crypto portfolio, you might want to look at multi currency wallets like Exodus, MetaMask, TrustWallet, Atomic or Guarda. If a coin or a token of your choice isn’t available there, you can always opt for a single-currency wallet that is usually designed by the project that launched the asset.
If you take safety and security matters seriously, go for hardware wallets, or cold storage wallets, like Ledger or Trezor, or even paper wallets. We strongly recommend you to do your research before creating a wallet: read the reviews to see what the community thinks, learn about the fees a particular wallet imposes for performing transactions, check out supported currencies and networks and see its security policy.
There are loads of different crypto exchange services, with new platforms emerging every month. Exchange providers differ by supported currencies, liquidity providers, fees, customer support, user interface, level of privacy and anonymity and customer support, which makes it hard for beginners to understand which one to choose. To learn more about what these exchanges offer and how you can assess them, read our guide on how to choose the best exchange platform.
To navigate them through the field full of services, we conduct research and thorough analysis of the market & list both prominent and promising exchange providers, keeping in touch with their teams 24/7. We give you all the necessary data on the offers they provide as well as their brief history, KYC/AML policies, reliability and advantages, while also indicating their downsides so that you don’t have to do that yourself.
Swapzone is an instant non-custodial cryptocurrency exchange aggregator that helps users make an informed choice when exchanging crypto assets. To make this possible, we gather the information on the exchange providers, select the parameters for comparison, aggregate and sort available deals & give an option to make a swap through providers' APIs in the same interface with a common user flow for every exchange. Still have doubts? Here's 9 reasons why you should use Swapzone to exchange crypto.
Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.