Member-only story
Why THORChain (RUNE) Should Be in Your Portfolio
Providing a solution to a long-standing problem in crypto.
Non-members can read the full story here.
Since the advent of decentralised exchanges (DEXes), we have witnessed major progress in finding ways to directly swap from one token to another on the same chain — notably Ethereum and Binance Chain — rather than taking the additional step to trade the token via ETH, BTC, BNB, USDT or another major digital asset.
However, a major shortfall with these DEXes is the inability to readily swap between cryptos on different chains. For example, switching from an ERC-20 token (i.e., on Ethereum) to BTC usually requires you to use Wrapped Bitcoin (WBTC), an ERC-20 token pegged to BTC instead of the actual coin.
How can we overcome this problem without going through a centralised exchange (CEX) whilst securely carrying out a transaction?
Enter THORChain.
Benefits of THORChain
Like other DeFi protocols, it uses liquidity pools (LPs) — a crowdsourced pool of coins and tokens bound within a smart contract that allows users to trade assets on DEXes without relying on centralised exchanges.
