THORChain (RUNE) is a decentralized liquidity protocol that enables cross-chain token swaps and liquidity provision, allowing users to trade assets across different blockchains without relying on third parties.
THORChain operates as a decentralized liquidity protocol enabling seamless exchange of cryptocurrency assets across various networks like Bitcoin and Ethereum, all while users retain complete control over their assets.
Through THORChain, users can easily swap one cryptocurrency for another in a permissionless environment, eliminating the need for traditional order books to facilitate liquidity. Instead, asset prices are determined by the relative ratios of assets held within liquidity pools, following the principles of an automated market maker.
RUNE serves as the native utility token within the THORChain ecosystem, functioning as the primary currency for transactions and playing a crucial role in platform governance and security. To ensure integrity and resilience against Sybil attacks, THORChain nodes must stake a minimum of 300k RUNE tokens to participate in its consensus process.
THORChain's development was funded through an initial DEX offering (IDO) on the Binance DEX in July 2019. It launched its single-chain chaosnet in April 2021, followed by a multi-chain upgrade later that same month. As of June 2022, THORChain's Mainnet is operational, marking a significant milestone in its evolution as a decentralized finance protocol.