The THORChain RUNE token surges 37% after the DeFi synthetic asset goes live and the Chaosnet supports swaps between several cryptocurrencies by using the RUNE token so let’s read more in today’s latest altcoin news.
The Cross-chain protocol ThorChain went live with synthetic assets trading on the platform causing the prices of RUNE to jump by 37% from the lows on Wednesday to Thursday’s peak of $5.56. Synthetic assets or blockchain-based representations of other assets like crypto are backed by half the value of the underlying asset and half in RUNE whcih allows the users to hold and trade a representative of a Layer1 or base asset at a lower cost.
SYNTHETICS ARE NOW LIVE ON @THORChain
1 Synthetic #Bitcoin on THORChain is always redeemable for 1 #Bitcoin from the liquidity pools.
-Faster tx settlement (5 seconds)
-Increase trade volume
Complete Launch Details:https://t.co/kqxZQNoIJX
— THORChain #THORFI (@THORChain) March 9, 2022
THORchain Rune token surged right after the mainnet went live. THORchain allows trustless trading and token swaps for a few cryptocurrencies from BTC to ether via RUNE so using it, as an intermediary allows for the trading of assets from one network to be traded for another in a decentralized manner without having to use smart contracts “bridges.” Trustless trading is a system where the participants need not know the identity of the participants. Synthetics will increase the network usage and the network total value locked which means cheaper swap fees and will generate greater income for liquidity providers. The update was activated by 2/3 majority of the distributed node operators.
Synthetics increased the demand for RUNE on the network which in turn increased the appeal among liquidity providers that provide the underlying token in return for a fee reward which allows for all assets to be redeemed on a 1:1 basis with the asset meaning a synthetic BTC on ThorCHAIN will easily be redeemable for one BTC. The first synthetic was created a few minutes after the protocol went live and RUNE surged over 37% when the update went live to a high of $5.56 during the early Asain hours. It has dropped since by 60 cents as the traders took profits amid the broader market downturn and the prices are up 40% in the past two weeks but are down by 76% from the high of $20.87.
The token prices of THORSwap which is a DEX based on the THORChain protocol, were up by 11% in the past day and the DEX allows for users to earn yields and to provide liquidity within the THORChain ecosystem. The release came months after THORChain was exploited for $8 million when a hacker deployed a custom contract that tricked the Bifrost Protocol into receiving a deposit of a fake asset.
- liquidity providers
- Smart Contracts