In DeFi world, standing still is akin to moving backward. THORChain, a key player in this space, certainly appears to be heedful of this, as its performance in Q3 2023 has been nothing short of electrifying. With the integration of the BNB Smart Chain, the introduction of innovative features such as Lending and Streaming Swaps, and impressive trading volumes to match, THORChain has firmly positioned itself as a force to reckon with. This article takes a closer look at the ground-breaking updates and metrics that have defined THORChain’s latest quarter.
A Revolution in Lending
Launched on 20th August, THORChain’s Lending protocol shook up the DeFi lending sphere. Borrowers have the freedom to use native BTC or ETH as collateral and acquire debt in a selected asset, denominated in TOR, THORChain’s stablecoin tethered to the $1 USD. Notably, the lending feature eliminates the hurdles of liquidations, interest rates, and term expirations. Since its inception, the Lending protocol has gained substantial traction—455 loans have been initiated, and over 1 million RUNE has been burned.
Streaming Swaps: Reshaping Trade Execution
The Streaming Swaps feature introduced by THORChain is nothing short of a paradigm shift in trade execution. The feature dissects large trades into multiple sub-swaps executed over a period, optimising price execution and dramatically reducing liquidity fees to a paltry 5 basis points. As a result, THORChain has positioned itself as not just a faster but also a more cost-effective alternative to centralised exchanges, serving as a robust competitor to giants like Coinbase and Binance.
Broadening Horizons with BNB Smart Chain
By incorporating BNB Smart Chain support, THORChain has expanded its ecosystem to include BNB and BEP-20 assets. This strategic move has catapulted the project into the league of multi-chain DeFi platforms—a pivotal move given Binance Smart Chain’s prominence. New opportunities for swaps, liquidity provision, and saving have thereby been unlocked, further augmenting the platform’s utility.
TOR: The Utilitarian Unit
In THORChain’s financial landscape, TOR plays a significant role as a non-transferable unit designed to parallel the value of $1 USD. It functions as a stable metric for transactional activities, ranging from network fee denominations to debt calculations in the Lending protocol. Unlike other assets, TOR’s market cap is consciously maintained at $0, underscoring its utilitarian function over speculative value.
Affiliates: The Enhanced Earning Potential
Affiliates on THORChain now have the flexibility to choose their preferred payout asset, making it possible to collect fees in assets other than RUNE. This feature has already proved beneficial for leading affiliates such as Trust Wallet and THORSwap, who have processed $121.3 million and $43.5 million in USD volume, respectively.
Looking Ahead: More Innovations in the Pipeline
In addition to the highlighted features, THORChain has also introduced noteworthy elements like Dynamic MaxAnchorSlip Calculation for tweaking lending sensitivities and Generic Data Passing Between Chains for expanded inter-chain operability. Plans are afoot for future innovations, including Memoless Transactions and a new form of Order Books that deviates from traditional models.
Q3 has been a transformative period for THORChain, highlighted by a dizzying array of innovations that extend beyond mere trading volume or liquidity stats. While it remains to be seen how these updates will influence the platform’s long-term standing, there is no denying that THORChain is pushing the boundaries in the DeFi sector, setting new benchmarks and showing no signs of easing off the pedal.
