What Is RUNE Coin?
With the exponential growth of DEXs (Uniswap, Balancer, Synthetix, Curve or Aave to name just a few) doubts about usefulness and validity of these decentralized exchange protocols arise, because they focus on the Ethereum blockchain, being able to support only ERC-20 tokens and leaving aside a multi-blockchain commercial market, completely dominated by CEX (centralized exchanges).
THORChain (RUNE) is a project that tries to solve this problem, being a decentralized cross-chain marketplace, allowing the exchange of cryptocurrencies from different blockchains without third party custody.
Although there are many blockchains, the most important and interesting market today is without a doubt the Ethereum/Bitcoin bridge. With the growth of DeFi, the synergy between the two projects is greater than ever, and while solutions such as RenBTC, WBTC, sBTC or tBTC allow the use of a synthetic or ''pegged/ wrapped'' version of Bitcoin, these projects demonstrate the growing interest in ability to move from one blockchain to another in a decentralized way.
In addition to the possibility of bridging the two chains, all the projects cited above that seek to bring Bitcoin on the Ethereum blockchain demonstrate that Bitcoiners seek to generate passive returns with the Bitcoins they have. THORChain would be one of the first projects where native Bitcoins could be staked and generate returns by providing liquidity to the THORChain protocol without the need to transform it into a synthetic version (RenBTC, WBTC, sBTC or tBTC).
At this stage, the THORChain blockchain has a fairly classic operation model, which has been seen in many DAOs: there are four major actors with different roles.
THORChain staking. The Stakers Or Liquidity Providers
The staker is in charge of providing liquidity to the system. The role of the staker is simply to place capital into a liquidity pool so that users can buy/sell different assets. Stakers get two types of rewards, the first is the swap fee, that is, the commissions that users are charged for exchanging one asset for another. The second type is what is called the system reward, it is the governance token of THORChain called RUNE coin.
The amount of staker’s profit depends on many factors, including the percentage of pool capital, the pool volume and price change of pool assets, the issuance program, and the price of the RUNE crypto.
Users Or Swappers
The user, through the THORChain blockchain, can exchange one asset for another, as long as they are listed and blockchains are connected to the THORChain blockchain.
When one wants to exchange two assets of different blockchains, the THORChain protocol uses what is called Continuous Liquidity Pools; each pool is composed of a blockchain asset connected to THORChain and the RUNE coin.
Each asset of the protocol has its own pool with RUNE; and exchange between Bitcoin and Monero for example, involves the sale of Bitcoin for RUNE in the Bitcoin/RUNE pool and then the sale of RUNE for Monero in the Monero/RUNE pool. This operation is completely automated by the protocol.
The cost that the user has to pay to be able to exchange the assets is divided into two parts, the first is the swap fee that encourages the stakers to continue providing liquidity, and the second is the slippage that depends exclusively on the amount of the trade made.
These actors monitor the prices of the assets so that there are no serious lags between the market price and the price in the protocol. The arbitrators are not incentivized by the protocol itself.
The nodes, as in any blockchain, are the ones in charge of monitoring and validating the movements of the network assets. THORChain nodes work together to establish a network that monitors, validates, and transmits transactions on a network of various blockchains (Bitcoin, Monero, Ethereum, etc).
THORChain blockchain is based upon the connection of blockchains through liquidity pools connected to each other through the RUNE token. The protocol does not favor any particular blockchain and provides free trading, swapping and staking.
THORChain uses the Cosmos SDK framework based on Tendermint BFT (Byzantine Fault Tolerance). It also deploys Proof-of-Stake (PoS) for Sybil resistance
THORChain Offers The Following Solutions
- Yggdrasil protocol which provides additional scalability due to an innovative partitioning algorithm
- Flash Network – a second-layer payment network connected to other similar solutions, such as Raiden and the Lightning Network.
- Æsir Protocol, a chain governance mechanism.
- ASGARDEX, the first decentralized exchange based on THORChain. ASGARDEX supports multi-chains and multi-tokens.
- BIFRÖST protocol, a cross-chain protocol that facilitates connection between different blockchains. It solves interoperability issues of existing blockchains.
RUNE Crypto History Brief
THORChain was founded in 2018. To protect the project's vision and mission, THORChain remains pseudo-anonymous, with no CEO, no founder, formal founders, executives and directors.
With the rapid growth of DeFi space, THORChain has great market opportunities: the project has only a handful of competitors, like Shapeshift and Uniswap.
What Can You Do With RUNE Coin?
RUNE is used in staking, as a settlement currency within liquidity pools, as a means of payment (all network transaction fees are paid in RUNE), as a means of reward ( Layer 1 validation nodes and Layer 2 liquidity nodes are paid in RUNE), as a means of chain governance and as a means of paying fees for sidechains’ creation.
How To Buy RUNE coin?
Today RUNE price is 14.4231 USD. The best way to exchange your coins to THORChain is StealthEX. It’s a super-friendly, non-custodial and limitless cryptocurrency exchange platform. So if you already have savings in crypto and wish to invest in THORChain crypto, just go to StealthEX and follow these easy steps:
- Choose the pair and the amount for your exchange. For example ETH to RUNE.
- Provide the recipient address to which the coins will be transferred.
- Move your cryptocurrency for the exchange.
- Receive your coins.