{"id":14814,"date":"2022-04-15T16:28:27","date_gmt":"2022-04-15T10:58:27","guid":{"rendered":"https:\/\/zebpay.com\/?p=14814"},"modified":"2022-04-15T16:28:27","modified_gmt":"2022-04-15T10:58:27","slug":"heres-everything-you-need-to-know-about-thorchain-ecosystem","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem","title":{"rendered":"Here\u2019s Everything You Need to Know About THORChain Ecosystem"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Key_features_of_THORChain\" title=\"Key features of THORChain\">Key features of THORChain<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Eliminating_Oracles\" title=\"Eliminating Oracles\">Eliminating Oracles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Combating_Liquidity_Dilution\" title=\"Combating Liquidity Dilution\">Combating Liquidity Dilution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Low_Cost\" title=\"Low Cost\">Low Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Speed\" title=\"Speed\">Speed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Non-profit_Organisation\" title=\"Non-profit Organisation\">Non-profit Organisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#How_does_THORChain_make_this_happen\" title=\"How does THORChain make this happen?\">How does THORChain make this happen?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Interoperability\" title=\"Interoperability\">Interoperability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Liquidity\" title=\"Liquidity\">Liquidity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Transparency\" title=\"Transparency\">Transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#The_THORChain_ecosystem\" title=\"The THORChain ecosystem\">The THORChain ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#RUNE\" title=\"RUNE\">RUNE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Disadvantages_of_Decentralised_Exchanges_like_THORChain\" title=\"Disadvantages of Decentralised Exchanges like THORChain\">Disadvantages of Decentralised Exchanges like THORChain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/au\/blog\/heres-everything-you-need-to-know-about-thorchain-ecosystem\/#Parting_thoughts\" title=\"Parting thoughts\">Parting thoughts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>Supporting multiple currencies, <a href=\"https:\/\/zebpay.com\/in\/buy-rune\/\" target=\"_blank\" rel=\"noreferrer noopener\">THORChain<\/a> is built on the concept of a cross-chain architecture that enables a smooth exchange between tokens of different networks. The THORChain network also covers Bitcoin and Ethereum exchanges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-features-of-thorchain\"><span class=\"ez-toc-section\" id=\"Key_features_of_THORChain\"><\/span><strong>Key features of THORChain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-eliminating-oracles\"><span class=\"ez-toc-section\" id=\"Eliminating_Oracles\"><\/span><strong>Eliminating Oracles<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In an attempt to keep pricing accurate, most decentralised exchanges use off-chain sensors, which adds the element of centralisation to the platform. Oracles monitor stocks, weather, and even payment balances. However, THORChain uses arbitrage traders to keep the pricing accurate. A token with a small value will be bought and sold on other exchanges. A token with a high value will be purchased from other exchanges to increase the volume in THORChain\u2019s exchange. These actions continually balance out the price without opting for any centralised tools. Arbitrage traders are appropriately incentivised with THORChain\u2019s token (RUNE) to ensure that the volume of RUNE matches the volume of other cryptos on the exchange.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-combating-liquidity-dilution\"><span class=\"ez-toc-section\" id=\"Combating_Liquidity_Dilution\"><\/span><strong>Combating Liquidity Dilution<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When there are too many liquidity pools for a single token, it becomes challenging to find counter-offers for them. However, every token is first paired with RUNE and then with the next token on this exchange. This transaction is almost instantaneous and seamless. Pairing the tokens with RUNE first eliminates the need for having a large number of liquidity pools and helps concentrate liquidity.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-low-cost\"><span class=\"ez-toc-section\" id=\"Low_Cost\"><\/span><strong>Low Cost<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>One of the most significant disadvantages of <a href=\"https:\/\/zebpay.com\/blog\/dexes-and-their-differences\/\">decentralised exchanges<\/a> is the high costs. THORChain not only keeps the costs much lower than other exchanges, but it also charges a fixed outbound fee, which is a dynamic liquidity fee, and redistributes a part of these fees to validators or liquidity pool providers.<\/p>\n\n\n\n<p>THORChain introduced a unique fee called the Slip-Based Fee. This fee is meant to combat whale manipulation, which refers to cash-heavy investors holding power to drastically increase or decrease the price of a token by making a large sale\/buy. The calculation of the Slip-Based Fee is based on how much your investment can alter the value of the liquidity pool token. This fee is distributed to the liquidity pool providers in the form of rewards.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-speed\"><span class=\"ez-toc-section\" id=\"Speed\"><\/span><strong>Speed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>High scalability and responsiveness are huge attractions for investors. A THORChain swap takes less than 5 seconds to be fully executed.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-non-profit-organisation\"><span class=\"ez-toc-section\" id=\"Non-profit_Organisation\"><\/span><strong>Non-profit Organisation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>THORChain\u2019s anonymous team, backed by its promise of complete transparency, makes it extremely reliable. Furthermore, any RUNE gathered as fees are distributed to network participants as rewards.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-how-does-thorchain-make-this-happen\"><span class=\"ez-toc-section\" id=\"How_does_THORChain_make_this_happen\"><\/span><strong>How does THORChain make this happen?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-interoperability\"><span class=\"ez-toc-section\" id=\"Interoperability\"><\/span><strong>Interoperability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Bitcoin to Ethererum and other such cross-chain crypto transfers are not possible directly from the primary networks. THORChain\u2019s interoperability function facilitates such transactions without the need for intermediaries.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-liquidity\"><span class=\"ez-toc-section\" id=\"Liquidity\"><\/span><strong>Liquidity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>By making it easy to exchange one crypto for another, THORChain enables an increase in liquidity and popularity for all supported cryptos.&nbsp;Users can also earn additional income through liquidity pools by depositing their cryptos in THORChain\u2019s decentralised exchange. This system also aids in a seamless borrowing mechanism.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-transparency\"><span class=\"ez-toc-section\" id=\"Transparency\"><\/span><strong>Transparency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>THORChain is extremely open about its functions. Users can track detailed developments of the platform through various channels.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-thorchain-ecosystem\"><span class=\"ez-toc-section\" id=\"The_THORChain_ecosystem\"><\/span><strong>The THORChain ecosystem<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>THORChain\u2019s ecosystem can be categorised into three parts.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Educational Content<\/li><li>Projects<\/li><li>Network Tools<\/li><\/ol>\n\n\n\n<p>This ecosystem helps THORChain gain investors&#8217; trust and promote a mass-market entry for blockchain.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-rune\"><span class=\"ez-toc-section\" id=\"RUNE\"><\/span><strong>RUNE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A total of 500 million RUNE tokens were created, of which around 13 million unsold RUNE tokens have been burnt. Currently, 330 million RUNE tokens are in circulation. RUNE cannot be mined, but it can be staked in liquidity pools.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-disadvantages-of-decentralised-exchanges-like-thorchain\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_Decentralised_Exchanges_like_THORChain\"><\/span><strong>Disadvantages of Decentralised Exchanges like THORChain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>For someone who is used to the smooth experience of a centralised crypto exchange, this platform might seem a little complicated to get the hang of. It has fewer features, and the process can be a little cumbersome for investors who don\u2019t mind paying transaction fees on Centralised Exchanges. Decentralised Exchanges are also heavily dependent on liquidity pools created by other investors. While they take steps to ensure a smooth exchange, there is always a risk involved.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-parting-thoughts\"><span class=\"ez-toc-section\" id=\"Parting_thoughts\"><\/span><strong>Parting thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The rise of prominent players in the crypto market has resulted in an increased need for cross-chain systems such as THORChain. With the unique features offered by this network, the decentralised exchange ecosystem is bound to grow rapidly.<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/medium.com\/@THORNOOB\/the-growing-thorchain-ecosystem-9fc0c61c8a72\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/docs.thorchain.org\/ecosystem\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/kriptomat.io\/cryptocurrencies\/thorchain\/what-is-thorchain\/\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/coinmarketcap.com\/currencies\/thorchain\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Supporting multiple currencies, THORChain is built on the concept of a cross-chain architecture that enables a smooth exchange between tokens of different networks. The THORChain network also covers Bitcoin and Ethereum exchanges. Key features of THORChain Eliminating Oracles In an attempt to keep pricing accurate, most decentralised exchanges use off-chain sensors, which adds the element [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-14814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=14814"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/14815"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=14814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=14814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=14814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}