by Martin Gaspar

THORChain Catalysts

Decentralized liquidity network THORChain has several exciting catalysts in the near-term that we are closely monitoring. THORChain allows users to swap native assets across several chains directly. For example, you can swap native BTC for native ETH in a seamless fashion. This is a huge addressable market, considering the billions of dollars’ worth of native assets deposited on centralized finance (CeFi) lenders today.

New Assets To Help Boost Volumes

With the protocol audited and secured by a bug bounty program following its summer 2021 exploits, it has fully resumed trading across its pools in Q4 2021 and has been patching bugs as they come up. Now, after a period of stability, it is adding new assets to help boost volumes. DOGE was just added on January 17. UST and LUNA are expected to be added to the network by the end of the month. This could prove lucrative to the network and its RUNE token holders considering that these tokens are popular and sport relatively high volumes across exchanges. DOGE volume is heavily driven by retail, allowing for potential new customer acquisitions for the network. Moreover, the Terra ecosystem is booming as of late, but there isn’t a convenient way to swap native assets for native UST prior to this integration, which could drive traders to THORChain. We’ll be monitoring whether adding these pairs drives higher trading volumes across THORChain.

Mainnet, Swap Fees, & RUNE Rewards

THORChain is also inching towards Mainnet, which will result in a gradual and significant lift in caps on total value locked (TVL), or deposits, onto the platform. Thus, the network could be primed to see a surge in deposits from crypto users looking to gain yield on their native assets, attracted by THORChain’s compelling yields that consist of both swap fees and RUNE rewards.

The THORChain team has been heads down for months now, working to strengthen and develop the network. The upcoming new asset integrations and Mainnet will be key to determining if THORChain can drive more users to its platform following its past exploits.

The opinions expressed in the CrossTower Classroom are those of the author(s) and not necessarily that of CrossTower. We appreciate diverse perspectives of our employees and we thank them for having a voice.

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CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.

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