ThorChain recently unveiled the highly-anticipated public Bitcoin testnet — swaps and pools with native Bitcoin. Users were invited to test it out. The developers feel that the Bitcoin testnet is a monumental leap in DeFi on Bitcoin.
Thorchain claim to be a native Bitcoin and a decentralized liquidity network. Being a cross chain liquidity network, THORChain does not have pegged or wrapped tokens. It provides for swap between assets across chains, and provides liquidity to earn yield and to run a node to service the network.
Some users expressed that atomic swaps with a high fee blockchain like Bitcoin is a horrible idea. And, further stated that high fee Bitcoin will only be traded in centralized exchanges to save on fees.
When swapping assets in Thor Chain users should swap between any connected asset pay a fee that is transparent for the access to liquidity.
Cross Chain Transfer is very important in ThorChain. They provide a simple way to convert fiat currencies to digital assets. Different methods have been promised to convert fiat via exchanges. ThorChain have put forward the cross-chain bridges with incentivized validators to ensure the transactional integrity in the process of converting fiat currencies to digital assets.
ThorChain claim to be the initial on ramp or bridge which will connect Bitcoin and other kinds of digital assets. The bridge infrastructure is also expected to permit chains to communicate with each other to transfer assets fluidly and anonymously.
Due to centralization of exchanges, the single point of failure is at the point of communication between block chains for exchanging digital assets.
In this regard, Sydney Ifergan tweeted: “With ThorChain the BTC is always BTC and the ETH is always ETH. They provide economic assurances like network availability, uncensored transactions, and no assets are stolen.”
ThorChain (RUNE) Value
The claim is that the deterministic value of RUNE increases when more of assets flow in to the Thorchain Ecosystem. Deterministic value is used to predict the future price and value of RUNE, useful for speculation and as a tool to provide for dynamic cross chain liquidity.
ThorChain states that: “The Value of $RUNE is always at least 3 times the value of assets staked in its vaults.”
Those who are new to ThorChain should essentially know what ThorChain is all about. Thorchain continue with their primary principle of: “”Optimize for liquidity first, everything else comes later.”
This they feel is important to drive maximal ROI for LPs, with this pools can become deep, which drives up volume, but reduces fees for traders.
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