Thorchain Crypto Sheet (RUNE)

Thorchain (RUNE) Crypto Brief: DeFi Protocol for Decentralized Cross-Chain Exchanges

What is Thorchain?

Thorchain is a decentralized finance (DeFi) protocol designed to enable decentralized cross-chain swaps without relying on centralized intermediaries or wrapped tokens. Unlike most platforms, Thorchain ensures that users can trade native assets like Bitcoin or Ethereum in  a completely decentralized and secure way.

Created to solve the interoperability and fragmentation issues of blockchains, Thorchain acts as an interoperable liquidity protocol, allowing users to transfer assets between blockchains without compromising their security or ownership.

RUNE Cryptocurrency Overview

RUNE is the native token of Thorchain, playing a central role in the ecosystem. It is used to:

• Ensure network security as  a universal peer in liquidity pools.
• Incentivize participants via rewards for validators and liquidity providers.
• Facilitate cross-chain exchanges by balancing pools.
• Participate in the decentralized governance of the protocol through its integration into DAO mechanisms.

Currently, the RUNE token  is one of the most promising in the DeFi ecosystem, with significant valuation and increasing adoption.

What makes Thorchain unique?

Thorchain stands out for its ability to connect independent blockchains without the need for centralized bridges. This means:

• More security: No reliance on single points of failure like centralized bridges.
• True interoperability: Native exchanges of assets such as Bitcoin, Ethereum, and Binance Coin.
• Non-custodial liquidity: Users always retain control of their assets.

In addition, Thorchain uses an innovative architecture based on Tendermint and the Cosmos SDK, which ensures fast, reliable, and scalable transactions.

Key Statistics About Thorchain

Characteristic	Approximate value (2025)
Native Token	RUNE
Total Value Locked (TVL)	500 million USD
Rank on CoinMarketCap	Top 100
Blockchain used	Cosmos SDK
Daily Volume	50 million USD

Thorchain continues to grow in popularity thanks to its innovative features and growing interest  in cross-chain solutions  in Web3.

Thorchain History: Origins and Development

Foundation and genesis of the project

Thorchain was founded in 2018 by an anonymous team of developers. This is a reflection of their philosophy of decentralization: the project must belong to the community, not to a small group. The initial idea was to create a solution to  blockchain fragmentation issues, making assets on separate networks incompatible without centralized intermediaries.

The protocol originated at a Binance hackathon in 2018, where its creators envisioned a system that could link blockchains through decentralized liquidity pools.

Launch and key milestones

Thorchain’s development accelerated in 2019 with the use of technologies like Tendermint and the Cosmos SDK. In 2020, the team launched ChaosNet, a real-world test environment that refined the protocol and strengthened its security before its official launch.

Here are the key dates of the project:

• 2018: Initial idea and Binance hackathon.
• 2019: Development of the technical bases with Cosmos SDK.
• 2020: ChaosNet is launched to test the network in a real-world environment.
• 2021: Mainnet goes live  with support for major blockchains like Bitcoin, Ethereum, and Binance Smart Chain.

Problems encountered and solutions implemented

Thorchain has not been spared from challenges. In 2021, the network fell victim to several attacks exploiting vulnerabilities in smart contracts, resulting in losses estimated at USD 13 million. These incidents have highlighted the importance of safety and regular audits.

To address this, the team worked with specialist companies such as Halborn and Trail of Bits. They have also implemented slashing mechanisms, penalizing malicious or inactive validators.

Recent Milestones

In 2023 and 2024, Thorchain has continued to evolve by integrating new blockchains and improving its scalability. Adoption by partners like ShapeShift and Trust Wallet has strengthened its position in the DeFi ecosystem.

Thorchain remains a key player in solving the interoperability problem, and its track record is a testament to its innovation and resilience in the face of challenges.

Vision, Mission and Core Principles

What problem does Thorchain solve?

Thorchain was created to address a major problem in the cryptocurrency ecosystem: the lack of real interoperability between blockchains. Today, many blockchains operate independently, preventing users from transferring assets directly between them without going through centralized intermediaries or wrapped tokens.

Centralized platforms (like traditional exchanges) have several risks:

• Security issues: They are vulnerable to hacks.
• Lack of transparency: Users often lose control of their funds.
• Over-dependence: Exchanges depend on centralized entities that can limit access or impose high fees.

Thorchain brings a decentralized solution, allowing users to trade native assets securely, quickly, and without intermediaries.

Thorchain’s philosophy

Thorchain’s vision is based on three core principles:

1. Full interoperability: The protocol allows exchanges between different blockchains, making truly global decentralized finance possible.
2. Pure Decentralization: Thorchain removes the need for trust in a central authority, ensuring that users always retain control of their funds.
3. Neutrality: The protocol does not favor any assets or blockchain. It works as an open infrastructure that is accessible to everyone.

How Thorchain is reinventing crypto exchanges?

Thorchain doesn’t just connect blockchains: it redefines crypto exchanges by integrating decentralized liquidity pools, where native assets are traded without creating encapsulated versions. This reduces the risks and costs associated with cross-chain transfers.

Additionally, Thorchain introduces incentives to encourage users to participate in its network:

• Liquidity providers receive attractive returns in exchange for their contribution to pools.
• Validators are rewarded for securing the network.

Through this approach, Thorchain fosters a user-centric ecosystem, with an infrastructure designed for transparency and reliability. This vision aligns perfectly with the goals of Web3: to build a truly decentralized and interoperable digital economy.

How Thorchain works: architecture and protocols

A unique interoperable protocol

Thorchain is a cross-chain protocol  that allows  decentralized exchanges of native assets between different blockchains. Unlike traditional solutions that rely on centralized bridges or encapsulated tokens (such as Wrapped Bitcoin), Thorchain ensures that users can directly trade native assets.

The operation is based on decentralized liquidity pools, where each asset is paired with a pair with the RUNE token. For example, a Bitcoin liquidity pool will include BTC and an equivalent amount of RUNE. This mechanism simplifies trading by using RUNE as a universal pivotal asset.

The role of the RUNE token in the ecosystem

The RUNE token is essential for Thorchain to function properly, as it performs several key functions:

1. Universal Peer: RUNE is used to connect all assets within liquidity pools. This ensures effective liquidity for each trading pair.
2. Securing the network: Validators must stake a significant amount of RUNE to participate in governance and secure the network.
3. Economic Incentives: RUNE is distributed as a reward to liquidity providers and validators, encouraging active user participation.
4. Pool balance: RUNE maintains the relative value of the assets in each pool, ensuring a smooth exchange experience.

Underlying technologies

Thorchain is based on an innovative architecture based on two main technologies:

• Cosmos SDK: Provides a modular and scalable structure to build the protocol.
• Tendermint: Ensures a fast, reliable, and Byzantine Fault Tolerant (BFT) consensus mechanism.

Liquidity management

Liquidity pools are at the heart of how Thorchain works. Users can deposit their assets into these pools and receive transaction fees proportional to their contribution. Built-in mechanisms minimize slippage and optimize returns with a dynamic model that adjusts fees based on trading volume.

With these innovations, Thorchain is redefining crypto exchanges by offering a robust, interoperable,  and fully decentralized infrastructure.

Thorchain Protocol Security and Audits

Architecture designed for security

Thorchain was designed with one top priority: ensuring the safety of users’ assets. The protocol relies on decentralized vaults and multi-signature mechanisms to protect funds deposited in liquidity pools. Unlike centralized exchanges, where a single entity manages assets, Thorchain decentralizes this responsibility, reducing the risks associated with single points of failure.

The network also uses validator nodes to execute transactions and secure the system. These nodes must stake a significant amount of RUNE to participate, creating an economic incentive that discourages malicious behavior.

Major Incidents and Past Hacks

Despite its advanced architecture, Thorchain faced notable attacks in 2021, in which hackers exploited vulnerabilities in smart contract code. These incidents resulted in losses estimated at around USD 13 million, dealing a temporary blow to user confidence.

The Thorchain team reacted quickly:

• Temporary suspension of the network to correct vulnerabilities.
• Repayment of stolen funds through internal reserves and community efforts.
• Implementation of slaundering mechanisms, penalizing malicious or negligent validators.

These attacks served as important lessons, strengthening the protocol’s resilience and pushing for continuous improvements.

Specialized audits and partnerships

Thorchain has collaborated with reputable companies for security auditing, such as Halborn and Trail of Bits. These companies have examined the source code to identify and fix any vulnerabilities.

In addition, the team has launched bug bounty programs that encourage cybersecurity researchers to report vulnerabilities in exchange for rewards.

Current protection mechanisms

To strengthen security, Thorchain uses several approaches:

• Automatic Slashing: Reduction of funds from offending validators.
• Decentralized network of nodes: No single node holds full control.
• Regular updates: The protocol is constantly being improved to stay up to date with new threats.

These metrics show that Thorchain, despite its tumultuous beginnings, has been able to become a reliable and robust protocol, adapted to the demands of an ever-evolving crypto ecosystem.

Thorchain Application Areas and Use Cases

Decentralized swaps: an alternative to centralized exchanges

One of the main applications of Thorchain is to enable decentralized exchanges (DEXs) of native assets between different blockchains. For example, users can exchange Bitcoin for Ethereum directly, without a centralized intermediary or wrapped tokens. This eliminates the risks associated with centralized exchanges (hacks, lack of transparency, dependence on a third party).

Cross-chain swaps are made using  user-funded liquidity pools. Every transaction is fast, secure, and optimized thanks to the role of the RUNE token  as a universal peer.

Comparison with traditional DEXs

Unlike platforms like Uniswap or PancakeSwap, which operate exclusively on a single blockchain (Ethereum or Binance Smart Chain), Thorchain is positioned as a cross-chain protocol. This makes it a unique solution for users looking to trade assets from different networks.

Cross-chain liquidity: opportunities for investors

Thorchain offers decentralized liquidity pools, where users can deposit their assets and receive attractive returns. These liquidity providers earn fees on every transaction made through the pools.

Benefits for investors:

• Competitive returns: Interest rates are dynamically adjusted based on demand.
• Enhanced security: Funds are protected by mechanisms such as multi-signature vaults.
• Asset diversification: Pools allow native assets like Bitcoin, Ethereum, or Binance Coin to be deposited.

Securing cross-chain assets

Thorchain also plays a crucial role in protecting cross-chain assets. Unlike traditional solutions based on centralized bridges, the protocol uses decentralized nodes to validate transactions. This reduces the risks associated with single points of failure and ensures increased safety.

Real-world use cases

Thorchain is already integrated into popular wallets like Trust Wallet and platforms like ShapeShift. These tools allow users to perform non-custodial cross-chain swaps, directly from their wallets, without ever relinquishing control of their funds.

Thorchain is positioned as a go-to solution for anyone who wants access to truly interoperable and secure decentralized finance.

RUNE Economy and Tokenomics

Features of the RUNE token

RUNE is the native token of Thorchain and plays a central role in its operation. It has been designed to optimize the liquidity, security, and governance of the network. Here are its main features:

• Maximum supply: The total supply of RUNE is capped at 500 million tokens, creating a scarcity that contributes to its value.
• Anti-inflation mechanisms: A portion of the RUNE is regularly burned to balance supply and demand.
• Multi-functional use: RUNE is used for swaps, staking, securing liquidity pools, and governance.

Incentives for users

Thorchain uses RUNE to reward the various participants in the network, incentivizing active participation and the provision of liquidity.

Liquidity Providers

Users who add assets to liquidity pools receive a share of  the transaction fees generated by the pool. These returns can be increased through incentive programs, especially when demand for specific assets increases.

Validators

Validators, who secure the network by running nodes, must stake a significant amount of RUNE. In return, they receive rewards proportional to their contribution.

Analysis of past performance

Since its launch, the RUNE token has seen significant growth, reaching highs during bullish periods in the crypto market. In 2021, its price increased more than 10x thanks to the rise of multichain DeFi and the growing adoption of Thorchain.

However, the token is also prone to cycles of volatility depending on the evolution of the overall cryptocurrency market and protocol-specific events, such as hacks or new integrations.

Economic Outlook

With the continued expansion of decentralized finance and the addition of new blockchains to the Thorchain network, the demand for RUNE is expected to increase. Its versatile nature and multiple use cases make it a key asset for investors looking to profit from the growth of the cross-chain DeFi ecosystem.

In summary, RUNE is not just a functional token, but an economic pillar for Thorchain, connecting users, validators, and liquidity pools in a vibrant ecosystem.

Partnerships, collaborations, and integrations

Strategic partnerships

Thorchain has partnered with several major players in the blockchain ecosystem to boost its adoption and interoperable capabilities. These strategic partnerships play a crucial role in the development of its network. Among the most notable collaborations:

• Binance: Integration of Binance Coin (BNB) and facilitation of exchanges between blockchains.
• ShapeShift: A decentralized platform that uses Thorchain to enable native cross-chain swaps.
• Trust Wallet: A wallet that directly integrates Thorchain’s features for secure cross-chain exchanges.
• Ledger: Compatibility with this hardware wallet, providing maximum security for users.

These partnerships increase Thorchain’s visibility and encourage its adoption by millions of users around the world.

Adoption by third-party developers and projects

Thorchain has also gained the attention of third-party developers and DeFi projects looking to integrate interoperability solutions into their platforms. Thanks to its open-source architecture and modular operation based on the Cosmos SDK, Thorchain can be easily integrated into existing ecosystems.

For example, projects like ThorSwap, an interface dedicated to cross-chain swaps, use Thorchain to provide decentralized and transparent services to users. This ability to integrate with various projects expands the use cases of the protocol.

Planned expansions and new integrations

Thorchain continues to expand by integrating new blockchains and improving its features. Recent and upcoming developments include:

• Support for new blockchains: Addition of networks such as Avalanche, Polkadot, or Arbitrum, to expand the interoperable ecosystem.
• Performance Optimization: Updated consensus mechanisms to reduce fees and increase transaction speed.
• Integration of synthetic assets: The introduction of synthetic pools to allow simplified exposure to different assets.

Impact of partnerships on adoption

These collaborations and integrations have significantly boosted  Thorchain’s growth and legitimacy in the crypto ecosystem. Each new partnership expands its user base and increases its liquidity.

By working hand-in-hand with influential Web3 players, Thorchain is positioning itself as a go-to solution for cross-chain exchanges, while cementing its place in multichain DeFi.

Advantages, limitations and competition

Benefits of Thorchain

Thorchain offers a unique solution to solve interoperability issues between blockchains, which gives it several competitive advantages:

1. Full interoperability: Unlike other solutions, Thorchain allows swaps of native assets between blockchains (Bitcoin, Ethereum, Binance Smart Chain, etc.), without the need for wrapped tokens.
2. Complete decentralization: The entire protocol relies on decentralized mechanisms, eliminating the risks associated with a central entity.
3. Non-Custodial Liquidity: Users retain control of their funds at all times, reducing the chances of hacking or freezing assets.
4. Attractive returns: Liquidity providers enjoy passive income from the fees generated by trading in pools.
5. Trust economy: Thorchain eliminates intermediaries, creating a transparent system where all transactions are verifiable on the blockchain.

These features make Thorchain a key player in the DeFi ecosystem, especially for users wanting fast, secure, and cross-chain exchanges.

Weaknesses and challenges

Despite its many strengths, Thorchain is not without limitations:

1. Technical complexity: Cross-chain swaps and liquidity pools may seem complex to new users.
2. Historical security: The 2021 hacks revealed vulnerabilities, although patches have been made since then.
3. RUNE volatility: Like any cryptocurrency, the RUNE token is subject to significant fluctuations, which may deter some investors.
4. Increasing competition: Other projects, such as Polkadot, Cosmos, or Multichain, also offer interoperability solutions.

Comparison with the competition

Thorchain operates in a competitive market where several players offer similar solutions, but with fundamental differences:

Protocol	Main feature	Bounds
Thorchain	Native cross-chain swaps without wrapping	Hack History
Polkadot	Interoperability via parachains	More centralized model
Cosmos	Cross-chain hub with IBC protocol	Requires integrations
Multichain	Cross-chain bridges for many assets	Risks of Bridges

Thorchain stands out for its pure decentralized model, while other solutions often rely on centralized bridges or encapsulated tokens.

All in all, Thorchain has unique advantages that meet the current needs of the crypto ecosystem. However, it will need to continue to innovate to remain competitive with other blockchain interoperability players.

Community and decentralized governance

The role of the community in development

Thorchain takes a full decentralization approach, where the community plays a central role in the growth and evolution of the protocol. Since the founding team is anonymous, the project was designed to belong to its users, in line with the ideals of Web3.

Community members are actively involved in:

• Develop the protocol: Thorchain is an open-source project, which allows independent developers to improve its code.
• Contribute to the ecosystem: Interfaces like ThorSwap have been created by third parties, increasing the accessibility of the protocol.
• Share ideas: Discussions take place on platforms like Discord, Twitter, and Reddit, where users suggest improvements or report issues.

This community dynamic fosters continuous innovation and a sense of belonging among users.

DAO Governance: A Decentralized Decision-Making Model

Thorchain is based on a decentralized governance model  based on a decentralized autonomous organization (DAO). RUNE holders play a key role in decision-making processes.

How governance works:

1. Proposals for improvement: Community members can submit proposals (e.g., adding a new blockchain to the network).
2. RUNE Holder Votes: Token holders participate in the vote to approve or reject proposals. Their influence is proportional to the amount of RUNE they hold in staking.
3. Implementation: Validated proposals are implemented by developers or through automated protocol updates.

This approach ensures a community direction where no single entity controls the network.

Social Media and Forum Engagement

Thorchain’s popularity is also based on a strong online presence. The protocol has active support on platforms like:

• Twitter: Sharing news, announcements and updates on the network.
• Discord: A hub for developers and users looking for help or discussing new ideas.
• Reddit: A key platform for debates about Thorchain’s interoperability and use cases.

Community Initiatives

The Thorchain community regularly organizes events such as hackathons to develop new solutions, awareness campaigns to attract more users, and educational programs on decentralized finance and interoperability.

This participative and open structure allows Thorchain to adapt quickly to market changes while building user trust.

Roadmap and recent developments

Thorchain’s Recent Advancements

Thorchain has achieved several significant milestones in recent years, cementing its place in the crypto ecosystem. In 2023 and 2024, the teams and the community worked on:

• Improved security: After the 2021 hacks, the protocol has benefited from extensive audits by companies like Halborn. Enhanced slashing mechanisms have been introduced to deter malicious behavior by validators.
• The addition of new blockchains: Thorchain has expanded its network to include popular blockchains like Avalanche and Arbitrum, increasing its interoperability.
• The introduction of synthetic assets: Synthetic assets have been deployed to provide users with simplified exposure to major cryptocurrencies, with lower fees and faster transactions.
• Improved scalability: Thanks to updates to the Tendermint consensus and optimizations to liquidity pools, Thorchain is now able to process more transactions per second while reducing fees.

These developments have allowed the protocol to strengthen its competitiveness in the face of projects such as Polkadot or Cosmos.

Short-term goals

Thorchain is focused on strategic goals for 2025:

• Integration of new blockchains: Adding networks like Polkadot and ZkSync to meet the growing demand for interoperability.
• Optimizing pool returns: Improving algorithms to maximize returns for liquidity providers.
• Increased user adoption: Launch educational campaigns and strategic partnerships to attract more users and investors.

These initiatives aim to position Thorchain as the benchmark for decentralized cross-chain swaps.

Long-term vision

Thorchain’s vision goes beyond simple exchanges. The protocol seeks to become the core infrastructure for multichain DeFi, facilitating use cases like:

• Instant cross-chain payments: Reduce time and costs for transactions on a global scale.
• Universal decentralized finance: Connecting all digital assets within a single decentralized ecosystem.
• Institutional adoption: Making Thorchain accessible to companies looking for reliable and secure solutions to manage cross-chain assets.

Future Indicators of Success

To measure the success of Thorchain, here are the key metrics to monitor:

• Increased TVL (Total Value Locked): More liquidity attracted to pools.
• Growth in trading volume: Evidence of increasing user adoption.
• Extension of partnerships: Collaborations with crypto market leaders.

Thorchain, with its ambitious roadmap and recent developments, continues to position itself as a key player in blockchain interoperability.

Outlook and Strategic Analysis for Thorchain (RUNE)

Thorchain SWOT Analysis

Thorchain has many strengths but also faces some challenges in a competitive ecosystem. Here’s a SWOT analysis to better understand its strategic position:

Forces	Weaknesses
Unique interoperability for native swaps	History of reputation-affecting hacks
Total decentralization without the need for trust	Complexity for new users
Strong community and growing adoption	RUNE Token Volatility

 

Opportunities	Threats
Expansion to new blockchains	Growing competition (Polkadot, Cosmos)
Growth of Multichain DeFi	Stricter regulations
Institutional adoption of DeFi solutions	Rapid Innovations in the Crypto Ecosystem

Strategic positioning in DeFi

Thorchain stands out as a key player in blockchain interoperability. Its ability to offer swaps of native assets without the use of encapsulated tokens is a major asset, especially in an environment where trust in centralized bridges is often questioned.

In comparison to competitors like Polkadot and Cosmos, Thorchain focuses on a specific niche: decentralized cross-chain exchanges. This specialization, combined with its unique RUNE-based architecture, allows it to maintain a competitive edge in the cross-chain DEX space.

Regulatory challenges

As with any DeFi project, Thorchain could be affected by increasing regulations in the crypto industry. Governments are increasingly looking to regulate decentralized exchanges to combat money laundering and tax evasion.

Thorchain, as a decentralized protocol, could circumvent some of these pressures thanks to its lack of a centralized entity. However, regulatory compliance remains an important topic to ensure widespread adoption, especially by institutional investors.

Impact of the Growth of Interoperable Blockchains

With the emergence of new blockchains like Avalanche, ZkSync,  and Arbitrum, interoperability is becoming a crucial issue for the crypto ecosystem. Thorchain is well-positioned to capitalize on this trend, but it will need to continue to innovate to maintain its lead against rival projects.

In summary, Thorchain is at a strategic turning point. With significant growth opportunities and challenges ahead, the project remains a critical pillar for building a truly interoperable and decentralized DeFi.

Conclusion: Thorchain, a revolution for cross-chain exchanges?

Summary of key points

Thorchain is establishing itself as an innovative protocol in the world of decentralized finance (DeFi), thanks to its ability to connect independent blockchains. Unlike traditional solutions based on centralized bridges or encapsulated tokens, Thorchain enables cross-chain native swaps with security and transparency.

The RUNE token, at the heart of the protocol, plays a central role in:

• Ensuring liquidity in cross-chain pools.
• Reward active participants, whether validators or liquidity providers.
• Balance and secure the network, by tying each asset to a pair with RUNE.

With its unique features, Thorchain addresses several major challenges in the crypto ecosystem, including blockchain fragmentation and the limitations of centralized exchanges.

Why is Thorchain promising?

Thorchain stands out for its long-term vision, focused on full interoperability and complete decentralization. These elements are essential for building a solid infrastructure in a truly global Web3.

The protocol has shown its resilience despite obstacles, including the hacks of 2021, by improving its security and expanding its functionality. Moreover, its growing adoption by platforms like ShapeShift or Trust Wallet proves its usefulness and growth potential.

With an ambitious roadmap, including the integration of new blockchains and the continuous improvement of its architecture, Thorchain is well positioned to become a pillar of multichain DeFi.

Recommendations for investors and users

Thorchain is particularly aimed at those who are looking for decentralized and interoperable solutions, without depending on centralized intermediaries. Investors can take advantage of the staking opportunities  and attractive returns offered by liquidity pools.

However, like any crypto project, it is essential to consider the volatility of the market and the associated risks before committing. A thorough understanding of the protocol and its mechanisms is also recommended.

Global outlook

Thorchain is not just a simple exchange protocol: it redefines the way digital assets interact across blockchains. With its innovative technology and engaged community, it remains a key player for the future of Web3 and decentralized finance. The interoperability and total decentralization it offers make it a must-have solution for years to come.

FAQ: Everything you need to know about Thorchain (RUNE)

What is Thorchain and what is it used for?

Thorchain is a decentralized finance (DeFi) protocol designed to enable decentralized cross-chain exchanges between different blockchains. It allows users to directly transfer native assets, such as Bitcoin or Ethereum, without the need for encapsulated tokens or centralized intermediaries.

Thorchain is used to facilitate cross-chain swaps, secure assets via liquidity pools, and offer attractive returns to liquidity providers.

What is the RUNE token used for in the Thorchain ecosystem?

The RUNE token  plays a pivotal role in the Thorchain ecosystem. Its main functions are:

• Universal Peer: RUNE connects all assets in liquidity pools.
• Network Security: Validators must stake RUNE to secure the protocol.
• Economic rewards: Users who add liquidity or secure the network receive RUNE as rewards.
• Governance: RUNE holders participate in network decisions through a decentralized governance model.

Is Thorchain secure?

Thorchain has beefed up its security after the hacks that occurred in 2021. The protocol uses decentralized vaults, multi-signature mechanisms,  and a slashing system  to penalize malicious validators.

In addition, Thorchain is regularly audited for security by  specialized companies such as Halborn, ensuring the robustness of the code and underlying mechanisms.

How to use Thorchain to trade cryptocurrency?

To use Thorchain, users must go through a compatible interface, such as ThorSwap, or wallets that integrate the protocol, such as Trust Wallet. Here are the general steps:

1. Connect a compatible wallet.
2. Select the assets you want to trade.
3. Perform a cross-chain swap in a decentralized and secure manner.

There is no central entity involved, and users retain control of their funds throughout the process.

What are the advantages of Thorchain over traditional DEXs?

Thorchain differentiates itself from traditional DEXs like Uniswap or PancakeSwap thanks to its cross-chain interoperability capability. Here are some of its benefits:

• Native asset exchanges: No need for encapsulated tokens like WBTC or WETH.
• Full interoperability: Connects major blockchains like Bitcoin, Ethereum, and Binance Smart Chain.
• Decentralized Liquidity: All transactions go through community-managed pools, with no centralized intermediaries.

How to participate in Thorchain as a liquidity provider?

To become a liquidity provider, you can deposit assets into  Thorchain liquidity pools through a compatible platform. Here are the main steps:

1. Choose the pool to invest in (e.g., BTC/RUNE or ETH/RUNE).
2. Deposit your assets into the pool.
3. Receive returns in the form of transaction fees and rewards in RUNE.

This participation allows you to generate passive income while contributing to the ecosystem.

What are the risks associated with Thorchain?

Like any DeFi project, Thorchain comes with some risks, including:

• RUNE volatility: Market fluctuations can impact the value of your assets.
• Risk of bugs or exploits: Although security has been strengthened, no protocol is immune to vulnerabilities.
• Complexity for beginners: The concepts of cross-chain swaps and liquidity pools can be difficult to understand initially.

It is recommended that you do your homework before participating.

Which wallets support Thorchain?

Thorchain is compatible with several wallets that allow you to use its features. The most popular wallets include:

• Trust Wallet: To perform cross-chain swaps directly from your mobile.
• Ledger: To secure your assets on a hardware wallet.
• XDEFI Wallet: Designed for the DeFi ecosystem, with native compatibility with Thorchain.

What is the difference between Thorchain and Polkadot or Cosmos?

Although Thorchain, Polkadot, and Cosmos share a common goal of blockchain interoperability, their approaches differ:

• Thorchain: Focuses on native asset swaps through decentralized liquidity pools.
• Polkadot: Uses parachains to connect blockchains within a centralized network.
• Cosmos: Leverages the Inter-Blockchain Communication (IBC) protocol to link compatible blockchains.

Thorchain stands out for its fully decentralized model and focused on decentralized finance.

How to buy RUNE token?

RUNE is available on several crypto exchanges, including:

• Binance: One of the leading platforms to buy and trade RUNE.
• ThorSwap: Allows you to acquire RUNE directly via the Thorchain protocol.
• Uniswap: To trade RUNE on the Ethereum blockchain.

Before purchasing, make sure to store your RUNE in a compatible wallet for added security.