THORChain | RUNE

Overview

◾THORChain is a decentralized network for swapping supported cryptocurrencies across blockchains. Its liquidity pools connect assets through RUNE, the network’s native token, so a swap can move between pools without requiring the user to hold RUNE directly. Node operators bond RUNE to help secure the network, while liquidity providers supply assets to pools and face the associated market and protocol risks. THORChain also has an application ecosystem and interfaces for accessing its services. Availability varies by asset and interface; a feature displayed in an interface is not necessarily a native THORChain protocol feature. ◾THORChain is built around cross-chain liquidity pools. Each supported asset pool pairs that asset with RUNE. When a user swaps between two supported assets, the protocol uses RUNE as an internal settlement asset between the relevant pools. Users can initiate supported native-asset swaps without first buying RUNE themselves. Node operators bond RUNE as economic security, and RUNE also has roles in liquidity and network incentives. Pool depth, fees, asset support, and execution conditions can change. ◾THORChain’s swap interface also presents services whose routes operate outside its native swap path. A September 24 community recap published on THORChain’s blog describes an optional Houdini Swap route that uses external, centralized-exchange routing. It should not be described as a THORChain-native privacy feature. The same recap discusses a proposed share of Houdini fees for the treasury and a separate base-layer limit-order proposal. Those proposals should be kept distinct from capabilities already running on the network; the recap explicitly says the proposed limit-order code is not live.

Project features

• Cross-chain swaps for supported assets RUNE-linked liquidity pools and RUNE bonding by node operators.
• Houdini’s optional external route; it is separate from THORChain’s native swap path.