TL;DR
- Thorchain, a decentralized liquidity protocol, is experiencing a notable resurgence after facing a series of setbacks.
- RUNE price has increased by 70% in the last week, with the TVL crossing $500 million.
- Thorchain’s Streaming Swaps feature continues to gain popularity among traders, with weekly trading volume exceeding $2 billion.
Thorchain, a decentralized liquidity protocol that facilitates native asset exchanges between blockchains, is experiencing an impressive resurgence after facing a series of challenges.
In the last week, the price of its native token, RUNE, has increased by 70%, reaching an all-time high, according to official data from CoinMarketCap.
This significant price increase comes after the Thorchain team burned 60 million RUNE tokens, boosting lending capacity by $100 million and increasing the total value locked (TVL) by 45%, surpassing $500. millions.
One of Thorchain’s standout features is its interest-free lending protocol, which allows users to take out loans against leading crypto assets like Bitcoin and Ether, with no liquidations or fixed maturity dates.
Recently, the protocol reduced collateralization rates for BTC and ETH to 200%, allowing users to borrow half the value of their assets.
This feature becomes especially attractive at a time when lending rates in DeFi are rising, as investors seek leverage amid the ongoing crypto rally.
However, it is important to note that Thorchain’s lending protocol differs from traditional lending in DeFi, as the collateral asset is sold for RUNE upon opening a loan, and the surplus is burned.
When loans are repaid In Thorchain, RUNE is issued and exchanged for the original collateral asset
In addition to its lending protocol, Thor offers the Streaming Swaps feature, which splits large trades into smaller orders that are executed over a period of time to minimize the impact on price.
This feature has gained popularity among traders, with weekly trading volume exceeding $2 billion.
The successful execution of the largest trade to date, a $7 million BTC to ETH swap, demonstrates the effectiveness of this feature.
Despite facing challenges in the past, including attacks and vulnerabilities, Thor has proven its resilience and continues to evolve to meet the needs of its community.
With a notable resurgence in its performance and growing adoption of its key features, Thorchain is positioning itself as a major player in the ever-evolving DeFi ecosystem.
