In the world of DeFi, few projects manage to create a buzz as resonant as Thorchain has in its first three days since launching its lending feature. With impressive metrics backing its robust adoption, Thorchain is shaping up to be a disruptive force in the DeFi arena, and for good reason. Just three days post-launch, a total of 520 loans were opened, a surprisingly high number that signifies the market’s thirst for decentralized lending solutions. Contrast this with the mere 14 loans that were closed, and it becomes apparent that borrowers are either in the middle of their loan terms or see no immediate rush to settle their debts.
Adding another layer to the lending story, 299 distinct borrowers jumped in to utilise the service. This not only shows decent adoption but also indicates a broadening user base that could mean increased liquidity and versatility for the platform in the long run. But perhaps the most intriguing aspect lies in the tokenomics surrounding Thorchain’s native token, Rune. A total of 64.48K Rune was minted for these lending activities, while an astounding 1.24M Rune was burned, leaving a net Rune burned figure of 1.17M. This mechanism is particularly fascinating because as long as borrowing continues to outpace repayments, Rune will keep getting burned, effectively reducing its supply and potentially driving up its value over time.
Thorchain’s swap features are also a financial marvel in their own right. The wallets interacting with Thorchain are currently making a whopping six times more than the core protocol itself. To put it in perspective, a wallet could earn $1500 while the protocol would net $253 from the same transaction. One standout swap transaction converted 510.6K USDC to 282.9K Rune, with an affiliate fee of $1.5K and a liquidity fee of $253.3. The entire operation took just 1 hour and 18 minutes, saving an estimated $15,806 compared to what the user would have spent on a centralised exchange.
Now, what makes all this even more intriguing is Thorchain’s Streaming Swaps feature. This innovation allows what they call “patient swappers” to get better price execution by dividing large transactions into smaller sub-swaps. The feature effectively negates the need for confirmation times, thus enhancing the user experience by facilitating quicker and smoother asset swaps across different blockchains. This feature alone has contributed to a significant uptrend in Rune’s price and trading volume.
But it’s not just the unique features that make Thorchain appealing. The project stands on a foundation of transparency and sustainability. It is 100% open-source, with no hidden backdoors or surveillance measures. And despite its complexity and range of features, the entire operation is managed by just two full-time developers. The protocol uses a 10 BP Affiliate Fee model to ensure its long-term sustainability, making it an attractive option for other developers and affiliates to join the ecosystem.
Thorchain’s integration capabilities are another feather in its cap. Various interfaces and wallets can be used to swap, deposit, or withdraw liquidity on the supported networks. Wallets like XDEFI Wallet, Metamask, TerraStation, and Wallet Connect are among those compatible with Thorchain interfaces like THORSwap, which facilitates Streaming Swaps among other features.
Even as we dissect these figures and features, one thing becomes increasingly clear: Thorchain has managed to achieve a lot in just three days since launching its lending platform. Its unique tokenomics surrounding Rune could set a precedent for how tokens can accrue value over time, even when users don’t directly hold or trade them. With such robust early adoption, both Thorchain and Rune seem poised for significant gains in utility and value. For anyone sitting on the fence about diving into DeFi, Thorchain’s stellar first three days might just be the nudge they need.
