THORChain (RUNE) Pros and Cons

avatar of @kevinnag58
2 min read

In today's cryptocurrency world there exists a growing number of decentralized exchanges. One of the more prevalent of these exchanges is THORChain, with it's native token, RUNE. In this subsection of the THORChain Coin Guide let's look at the various pros and cons associated with THORChain (RUNE).


  • THORChain provides the user a decentralized platform that enables easy swaps of tokens in their native form (no wrapping or pegging required).
  • Marketplace liquidity is fostered by the availability of cross-chain bridges providing easy access to the THORChain blockchain.
  • THORChain offers continuous liquidity pools which are unique in nature within the cryptocurrency arena.
  • “THORChain is a liquidity protocol designed to connect all blockchain assets in a marketplace of liquidity through cross-chain bridges and continuous liquidity pools secured by **economically incentivised validators.”[Emphasis added] [THORChain Whitepaper. (Accessed July 17, 2021)]. To become a validator, RUNE must be bonded. Validators may be punished in the THORChain ecosystem for bad actions through forfeiture of all or a portion of the RUNE bonded.
  • The swap of assets by an user is unrestricted by the THORChain system and is non-custodial in nature
  • “Liquidity is provided by stakers who earn fees on swaps, turning their unproductive assets into productive assets in a non-custodial manner. Market prices are maintained through the ratio of assets in pools which can be arbitraged by traders to restore correct market prices*.” [Emphasis added] [THORChain. (Accessed July 17, 2021)].
  • Incentivized On-Chain Liquidity. THORChain is designed to facilitate three basic functions: "Trustless and secure, bi-directional bridging across all chains; Incentivizing asset holders for staking in order to ensure liquidity; Allowing for instant asset swaps and trans-currency payments, any digital asset with each other.... the basic concept for the project is quite simple: incentivize the creation of liquidity and then connect all liquidity and blockchains together for complete interoperability, improved liquidity, and eventually create mass adoption of cryptocurrencies that allows anyone to pay for anything, anywhere, with any currency." [Walters, S. "THORChain (RUNE) Review: Interoperable Liquidity Protocol". (Accessed July 17, 2021).


  • There really is not a long history trail behind the THORChain protocol. Conception of the THORChain project did not occur until 2018.
  • It has been announced that THORChain has no CEO, no founders, or no directors so basically it is without any management team at all. This was a purposeful decision as the founding team believed that anonymous decentralization was key to the projects success. This purposeful action, however, has caused some concerns to be raised by the DeFi community. It appears DeFi users are somewhat unhappy with the absence of information concerning the key players behind the formation and operation of THORChain.


The THORChain ecosystem is quite extensive relative to that which it hopes to achieve. As shown above, there really is not much working against THORChain at the present time, however one must remember that this is a developing technology. But if the THORChain technology is soundly implemented, this protocol stands in a superior position to greatly enhance the Decentralized Finance sector of cryptocurrency as it moves onward toward the future.

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