THORChain Activates Feature, 30% Spike Follows, Can Bulls Sustain It?
March 09 2022 - 5:00PM
NEWSBTC
Up almost 30% during today’s trading session, decentralized
cross-chain exchange THORChain (RUNE) trades north of $5.28. One of
the top gainers in the current relief rally across the market, the
network has activated synthetic assets, a new feature that could
attract use cases and users to the platform. Related Reading |
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Spurred The Rally Per an official post, synthetics assets are
tokens pegged to the value of their underlying collateral, such as
Bitcoin or Ethereum. In order words, users can now access BTC, ETH,
and others running on THORChain. Similar to Wrapped Bitcoin (wBTC),
a popular token on Ethereum, with the difference than synthetic
assets can also be collateralized by BTC, in this case, and other
cryptocurrencies. The synthetic version of Bitcoin running on this
blockchain is called sBTC and offers the user exposure to BTC’s
price performance. Unlike Bitcoin, according to the post, its
synthetic version on THORChain offers faster transactions and lower
fees. In that way, a user can trade with this benefit and benefit
from other yield generation products. Per the post: As a benefit,
you will have access to yield generating vaults, and be one of the
first users who will vest their funds. Minting synths will be
capped and access will depend on how much liquidity is in the
THORChain pools. The post adds that users can simplify their
trading experience, and gain access to different cryptocurrencies
from multiple blockchains without using a centralized exchange.
Core developer Chad Barraford said the following on the advantages
of this feature and its impact on the network’s ecosystem:
Synthetics can be used to change the pool depths, and therefore
correct the pool price to match market demands, i.e. arbitrage.
This is super important because it means the pools can be arbs
faster, cheaper, and more efficiently. THORChain Publish Roadmap,
How It Is Moving Towards Decentralization Furthermore, synthetics
assets will provide THORChain users with the ability to earn as
much as 20% interest on their holdings. For that, users will need
to lock their assets on a vault called THORSaving which will have
an initial 5% APY. One of the most hyped products in the lending
and borrowing use case. Users will be able to access “self-repaying
loans” which generate yield on collateral. As the post clarified:
You take the loan which will be paid automatically by the interest
the vaults generate from the locked synthetics. Barraford predicts
a potential increase in trading volume for RUNE and the THORChain
ecosystem in general. The project recently integrates with Terra
(LUNA) and will begin acquiring this network’s native token along
with its native stablecoin UST. Related Reading | Mars Protocol To
Launch On Terra, But Why MARS Has Seen A Massive Dump Ultimately,
the decentralized exchange aims at increasing its liquidity
10-fold. To achieve this goal, THORChain published a roadmap that
included the integration of DEX aggregators, more features,
wallets, and access to other blockchains. THORChain project
roadmap: * More chains (LUNA, Privacy, L2's)* More wallets (all the
big ones)* More integrations (Dex aggregators)* More Features:
Synths, THORFi (lending, saving), THORNames Not stopping until
decentralised liquidity 10x bigger than centralised. $RUNE —
THORChain #ACTIVATETHESYNTHS (@THORChain) March 6, 2022
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