Protocol positioning and technical core

THORChain is built on the Cosmos SDK and is committed to eliminating the monopoly of centralized exchanges, enabling the free exchange of multi-chain native assets. It combines Automated Market Makers (AMM) and Continuous Liquidity Pools (CLPs), allowing users to directly exchange BTC for ETH without the need for wrapped assets or third-party intermediaries.

Trading Mechanism and Liquidity Design

All asset exchanges are automatically executed by smart contracts, and trading pairs are paired with RUNE, simplifying liquidity structures and enhancing capital efficiency. Users can provide liquidity unilaterally and reduce the risk of price attacks through a slippage fee mechanism.

The multiple functions of the RUNE token

RUNE is the core asset of the protocol, serving as the settlement medium for all liquidity pools and ensuring node staking and network security. RUNE holders can also participate in protocol governance, deciding on important matters such as asset listings.

Security Mechanism and Risk Warning

THORChain adopts a high liquidity and node rotation mechanism to prevent network centralization and malicious attacks. While liquidity providers can earn fee rewards, they must be vigilant against risks such as impermanent loss.

Development prospects and ecological potential

As the demand for DeFi grows and the cross-chain ecosystem expands, THORChain is expected to become a key infrastructure for multi-chain asset liquidity. Its decentralized design and native asset support provide users with greater asset freedom and security.