Should I buy THORChain (RUNE) in 2021?

LeoFinance
2 months ago
(edited)
8 Min Read
1571 Words


Source: @crypto-guides


There is a section in the "What is THORChain (RUNE)? - THORChain Guide" titled "Should I buy THORChain (RUNE) in 2021?"; with this post I hope to contribute an item or two we don't usually hear about from both legacy media and even cryptocurrency-oriented media. For @crypto-guides -- Feel free to adjust as needed for Guide purposes.


The Native RUNE Token

RUNE, the native token used by THORChain, serves multiple purposes:

  • Like most tokens, it is used for governance (especially on Proof of Stake blockchains).
  • RUNE is used as a medium to facilitate the trade of Crypto A with Crypto B. Intercrypto trading is still a complex matter even today, but the use of RUNE as a medium to facilitate trades between A and B simplifies the process. At about 5 seconds per transaction, the trade feels as if A and B were traded directly with each other.
  • The value of RUNE increases as the value locked within the network increases.

THORChain Is Fully Funded for a Long Time

Remi Tetot is a co-founder of on-demand financial TV channel RealVision that anyone can watch from anywhere on computer, mobile, and smart TV.

In April 2021 he interviewed the development team for THORChain. One item to put investors in the cryptocurrency and network at ease is how well funded the THORChain project is:

Additionally, the Thorchain team is sitting on +$100 Million in treasury, which give them enough liquidity to fund anything they like.


Bridging Blockchains with the Bifröst Protocol

Just as Thor used the Bifröst to travel between Asgard and Midgard (i.e., Earth), THORChain uses the Bifröst Protocol to allow communications and operations between THORChain and other blockchains.

Like Polygon, THORChain is not the first cross-chain solution. However, if we go by the THORChain channel on Medium, Bifröst

...is not the first cross-chain solution, it could be the most evolved. In fact, THORChain’s protocol improves upon the weakness of preceding cross-chain architectures like Rootstock 2WP, Liquid Sidechain, POA Network Bridge and COSMOS Peg Zone.

Just as it is easy for ForEx traders to trade dollars, euros, yen, pesos, rands, and riyals, it should be just as easy for us to trade BTC, ETH, HIVE, DOGE, BNB, SAFEMOON, MATIC and RUNE. THORChain is the best solution yet to make this possible.

Development Driven by the Community

Cryptocurrency projects of all kinds have a core team of developers. However, a good number of cryptocurrency projects are driven by members of the community. Dogecoin is famous for (among other reasons) being driven by its community, and that community is kicking it up a notch with the development of decentralized applications. The social blockchain Hive has such a fiercely independent community that its very existence came about as a result of the hard fork from Steem blockchain after ownership of Steemit succeeding in centralizing its control over Steem.

THORChain is also driven by its community. This includes marketing efforts, which include heavy use of memes as well as social media for providing content and merchandise.

Just as Hive has an ecosystem of dApps for various purposes (blogging, wallet, blockchain explorer, gaming, video sharring, video streaming, etc.) THORChain.com shows these dApps as part of its growing ecosystem:

  • THORSTARTER -- Liquidity relayer and IDO platform for THORChain;
  • Brokkr -- Native THORChain Synthetic Assets making DeFi more user-friendly;
  • THORChain Explorer -- Viewer for network status, node halth, value locked, etc.;
  • THORSwap -- "The world's first multi-chain decentralized exchange";
  • THORWallet -- software wallet for storing RUNE and other cryptocurrencies supported by THORChain;
  • RUNE DATA -- Profit & Loss simulator for variosu pools;
  • RUNESTAKE.info -- Enter Binance Chhain address to view added liquidity on THORChain
  • Digital Marketing -- Community-led inbound and outbound campaigns

LP University

Speaking of community, it even launched a program called LP University. LP University provides support to people who provide liquidity to THORChain, and LP University shows them how to optimize their returns.

THORChain (RUNE) Solves A Number of Problems

Although there are more popular blockchain networks, many have their flaws. THORChain hopes to solve a number of them.

THORChain Brings Together Isolated Blockchain Networks

There are tens of thousands of cryptocurrencies on the market today, and each day more are being launched or brought online. Thankfully, the number of blockchains powering them is a more manageable number; Ethereum and Binance Smart Chain alone provide platforms for thousands of altcoins. Unfortunately, the networks using those blockchains and othrs operate in isolation from each other, as if they are small islands spread across a vast ocean. Communicating value or data between each other is dificult if not impossible.

Enter THORChain.

This independent blockchain has capabilities to bridge external networks with the ultimate purpose of making it easier to transfer assets across blockchains. This capability eliminates the need for using a centralized exchange such Coinbase, Binance, or Gemini. As a side benefit, costs for traders are reduced and efficiency is improved.

THORChain Makes Using DEXs Simpler and Clearer

According to OTCPM24, New users of DEXs (Decentralized Exchanges)-- especially those coming from CEXs (Centralized Exchanges)-- can be confused by them. DEXs have fewer features than CEXs, and it takes more steps to execute trades on DEXs.

One requirement of many DEXs is ownership of the native token just to conduct basic transactions on them. Combined with fewer features than what they are used to, new users of DEXs reconsider and click away from the DEX.

THORChain simplifies the process for new users of its DEX, ThorSwap:

  • No web extensions such as MetaMask are needed to use ThorSwap;
  • The home page itself offers a built-in non-custodial wallet feature;
  • The non-custodial wallet allows a ThorSwap user to interact with the THORChai ecosystem safely while reataining ownership of the coins in the wallet.

One benefit of the simplicity of trading one cryptocurrency with another by using THORChain is the removal of speed bumps or friction involved when using wrapped coins or wrapped tokens. And THORChain does this while bringing trustless trading to many of th largest blockchain networks.

THORChain is More Transparent

THORChain allows users of ThorSwap to instantly swap cryptocurrencies between blockchains in a transparent manner. THORChain has a channel on Medium.com where on a weekly basis it publishes developments and noes on updates.

THORChain Is Oracle-Free

Many DEXs use off-chain sensors called oracles to monitor communication and the flow of various forms of data (stocks, payment balances, even weather events which can affect commodities). Oracles tend to be centralized, and that's a weakness for anything aiming to be decentralized (especially a DEX).

Instead of using oracles, THORChain uses arbitrage traders to keep pricing information accurate. If the price of RUNE is too low in value, the arbitrage traders will buy it to resell it on other DEXs. If the price of RUNE is too high, the arbitrage traders will buy RUNE from other DEXs to bring it to ThorSwap. The back-and-forth arbitrage trading helps to bring balance to the market while allowing ThorSwap to maintain its decentralization.

Fast Swaps on ThorSwap

ThorSwap, according to OTCPM24.com, completes anaverage swap inabout 5 seconds. This speed allows investors to stay ahead of trends in cryptocurrencies. Addittonally, that responsiveness provides developers with more options.

Also, ThorSwap offers interfaces to some third-party DEXs which add functionality to THORChain.

Earn Rewards without Having To Claim Them

If you've ever used a system where you get notified of a reward that needs to be claimed, then you know how much time it can take. Not that you (or we) don't want rewards, but time becomes a big factor when you consider any Layer 2 tokens earned.

On THORChain, liquidity positions are auto-compounding, so you never need to "claim rewards".

Conclusions

THORChain is designed to make intercrypto work much like ForEx trading between fiat currncies. While it's not that simple, within the world of cryptocurrency THORChain is a breakthrough.

Both the core developer team for THORChain as well as the THORChain community have worked to make the UX (User Experience) for people new to DEXs as easy as possible, from the ThorSwap DEX itself to the wallets.

Due to funding the THORChain project had accumulated for years prior to its launch in 2021, the THORChain project can fund any project it wants. One such project is LP University, whhich teaches liquidity providers how to maximize their returns.

The Bifröst Protocol is what allows THORChain to communicate with other blockchain networks in order to perform intercrypto trades. The RUNE token is used to facilitate trades from one cryptocurrency to another.

Like the more famous Dogecoin community, the THORChain community makes heavy use of memes and social media for providing content and merchandise. Unlike the Dogecoin community, the THORChain community had developed an ecosystem of dApps to make THORChain even more useful.

Intercrypto trading has been a problem due to how isolated blockchain networks are. THORChain is the best effort yet to make intercrypto trading as painless as possible, especially for people migrating from a CEX (centralized exchange) like Coinbase or Gemini to a DEX (decentralized exchange) such as UniSwap.

With the upside potntial of THORChain, it makes sense to invest in it. We hope this Guide to THORChain (RUNE) helped clarify any concerns on whether it's a buy or not.

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