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THORChain

RUNE
DeFi / Cross-ChainTendermint BFT (Cosmos SDK-based PoS)Launched 2019
Max Supply
500.00M
Circulating
350.00M
Launched
2019
Minute-Level Data From
2022-12-28

What it does

THORChain is a decentralized cross-chain liquidity protocol enabling native asset swaps between different blockchains (Bitcoin, Ethereum, Solana, etc.) without wrapped tokens or custodial bridges. RUNE serves as the settlement asset for all liquidity pools: every pool pairs a native asset with RUNE, making RUNE the universal routing currency for cross-chain swaps.

How it works

THORChain uses a network of bonded node operators (who stake RUNE) to manage vaults that hold native assets on each supported chain. When a user swaps BTC for ETH, the protocol routes through RUNE: BTC β†’ RUNE β†’ ETH, using continuous liquidity pools (CLPs). Node operators use threshold signature schemes (TSS) to collectively custody native assets without a single point of control. RUNE is burned from the max supply over time through protocol mechanics, reducing total supply. The 3:1 bond/pool RUNE ratio requirement β€” where nodes must bond 3x the RUNE value of assets in pools β€” creates economic security incentives.

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Problem it solves

Moving assets between different blockchains traditionally requires centralized exchanges (custody risk) or wrapped token bridges (smart contract risk). THORChain enables native asset swaps where users keep BTC on Bitcoin and receive ETH on Ethereum, with no wrapped assets and no centralized custodian. This provides genuinely trustless cross-chain liquidity for the first time.

Key Differentiator

The only protocol enabling native (non-wrapped) Bitcoin and other non-EVM asset swaps through decentralized liquidity pools, using RUNE as a universal settlement layer β€” no bridges, no wrapped tokens.

Tokenomics

Supply Model
Deflationary (ongoing RUNE burns reduce max supply from 500M toward a lower equilibrium)
Staking
Node operators bond RUNE (minimum ~300K RUNE) to secure the network and earn swap fees; liquidity providers earn fee APY
Burn Mechanism
Systematic RUNE burns from protocol revenue; total supply has been reduced well below original 500M cap
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Ecosystem

Chain: THORChain (own Layer 1 blockchain, Cosmos SDK based)
Depends on: Node operator bond security, supported chain integrations, cross-chain liquidity depth, RUNE burn rate
Influences: Cross-chain DeFi volume, native Bitcoin DeFi activity, decentralized bridge alternatives

Similar Projects

Sources

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Supply figures and project details are approximate and may not reflect the latest changes. Always verify from official sources before making decisions. This information is for educational purposes only β€” not financial advice.