ThorChain

ThorChain is a decentralized liquidity protocol that allows users to swap assets across different blockchains (like Bitcoin to Ethereum) without using a centralized exchange or wrapped tokens. It enables native cross-chain swaps, meaning you trade real BTC for real ETH directly from your wallet.

Users can earn passive income by providing liquidity to the network's pools. For example, depositing BTC into the BTC/RUNE pool allows you to earn yield from trading fees and block rewards. ThorChain is a legitimate and critical infrastructure project in DeFi, solving the problem of blockchain interoperability without centralization.

Frequently Asked Questions

1. How do I swap native Bitcoin?

You use a front-end interface like Thorswap or Trust Wallet that integrates ThorChain. You connect your Bitcoin wallet and your destination wallet, and the protocol handles the swap via its liquidity pools without wrapping the asset.

2. How do I earn yield?

You can become a Liquidity Provider (LP) by depositing assets (like BTC or ETH) alongside RUNE into a liquidity pool. You earn a share of the swap fees plus system rewards. ThorChain also offers "Savers Vaults" for single-sided yield.

3. What is RUNE?

RUNE is the native utility token of ThorChain. It is used to pair with every asset in the liquidity pools (e.g., BTC-RUNE, ETH-RUNE) and secures the network. The value of RUNE generally correlates with the amount of liquidity in the network.

4. Is it safe?

ThorChain has faced hacks in the past but has since undergone multiple rigorous audits and improved its security ("hardened"). It offers Impermanent Loss Protection for LPs who stay in the pool for at least 100 days.

5. Do I need an account?

No, ThorChain is a decentralized protocol. You do not create an account or provide ID. You simply connect your self-custody wallet to a supported interface to swap or provide liquidity.