Thorchain is up over 18% in the last 24 hours, following the cross-chain DeFi project's roll-out of synthetic assets and the announcement of a launch date for a suite of new features called “Thorfi.”
The project’s token has also enjoyed a healthy rise amidst this activity. On Monday, RUNE traded at $4.73, according to CoinMarketCap. Today, the price hit highs of $5.85, marking a whopping 24% increase over the past four days.
Built on Cosmos, Thorchain is a cross-chain crypto platform that lets users swap cryptocurrencies from different networks without the need for a third party, like Coinbase or Binance. The latest updates continue to build on mixing incompatible cryptocurrencies, like Bitcoin and Ethereum, to create new derivative products.
The latest price increase can likely be attributed to a variety of new updates Thorchain has rolled out or hyped up.
For starters, synthetic assets, which let users create derivative versions of other popular cryptocurrencies like Bitcoin and Ethereum, have already seen nearly $7 million in trade volume on the decentralized exchange (DEX) Thorswap.
Launched on Wednesday, synthetic assets are backed by liquidity pools within the Thorchain ecosystem. Unlike wrapped assets, such as Wrapped Bitcoin, a crypto asset pegged and backed 1:1 to the price of Bitcoin that runs on Ethereum rails, synthetic assets are minted by a 50% mix of RUNE token and 50% of the target asset (in this example, Bitcoin).
These assets are much more like liquidity pool (LP) tokens which DeFi users get as a sort of receipt whenever they deposit liquidity into a pool on Uniswap or Curve Finance.
And just like those LP tokens, synthetic asset holders can always redeem the synth token 1:1 for the real thing, be it synthetic Bitcoin for actual Bitcoin or synthetic Ethereum for a synthetic version.
After that, core developer Chad Barraford outlined a new initiative called Thorfinance (or Thorfi for short), which would bring many popular DeFi tools all under the Thorchain umbrella.
This includes services like lending and borrowing, but also the launch of a native stablecoin called THOR.USD. It’s expected that this stablecoin would leverage a similar mint-burn scheme as seen by the market’s largest decentralized stablecoin, UST.
Stablecoins are assets pegged to the price of a single asset, typically a fiat currency such as the dollar. The first generation of stablecoins, such as Tether, maintain their price using a basket of assets including fiat reserves.
But some advocates of decentralization argue that a centralized entity maintaining a basket of real-world assets introduces a single point of failure into the system. That brings with it risks such as opacity over governance structures and whether the actual reserve...
This suite of new features has been slated for June 17.
Though the summer is still months away, crypto enthusiasts already appear to be rushing to RUNE.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
The debate over whether Bitcoin is best suited for payments or as a store of value is flaring up again. This time, it comes after the price to send the leading cryptocurrency has been slashed.
Top Bitcoin blockchain explorer Mempool posted this week that now users of the biggest crypto network can pay as low as 0.1 satoshi per virtual byte (sat/vByte) to get their transactions processed. A satoshi is the smallest unit of Bitcoin, with 1 satoshi equaling 0.00000001 BTC.
Previously, it would cost...
Ethereum’s price has increased at nearly twice the rate of Solana’s over the past month, but the outperformance will likely be temporary, according to Adrian Fritz, head of research at Switzerland-based asset manager 21Shares.
Although Ethereum is the most secure and decentralized smart contract platform, Solana is still a smaller project with more upside, partly due to its community of developers that are constantly striving for “better execution,” he told Decrypt on Friday.
“Ethereum was almos...
Barstool Sports founder Dave Portnoy can’t help sharing his crypto fumbles, notably declaring in 2021 that he “fucked up Bitcoin” by panic-selling his stash for a huge loss the year prior.
But the outspoken personality continues to play in the crypto world, including launching his own Solana meme coins last year and pumping-and-dumping others. Now he’s griping publicly about selling off his stash of XRP before the prominent cryptocurrency surged to an all-time high on Thursday, breaking a record...