THORChain is a layer-1 protocol designed to let users move cryptocurrencies between blockchains right away. In practice, it supports decentralized trading of crypto assets across multiple chains.

THORChain started in 2018 with the idea that transferring crypto-assets between different blockchains through centralized exchanges comes with ongoing drawbacks. The team set out to build an independent chain capable of connecting to outside networks, enabling cross-chain transfers in a way that resembles how DEXs function.

When it launched, Thorchain included assets such as Bitcoin, Ethereum, Bitcoin Cash, Binance Smart Chain, and Litecoin, and it has since kept adding support for additional tokens and assets.

What are THORChain’s key features and how does it work?

It relies on an automated market maker (AMM) approach similar to Uniswap. THORChain’s token, RUNE, serves as the foundational pair for swaps. The protocol also uses a modified lending setup inspired by Bancor’s continuous lending pools to help run trades. During these trades, assets are placed into liquidity pools that are shared with a single counterpart asset: Thorchain’s native token, RUNE. 

In every trade, RUNE is exchanged against the other asset. For instance, when someone swaps asset A for asset B, the system carries out two steps: first swapping asset A into RUNE, then swapping RUNE into B. This double-swap method is what enables non-custodial, cross-chain asset swapping.

THORChain operates with a proof-of-stake consensus model. Node operators receive RUNE tokens for securing the network and validating swaps. Traders may also receive a portion of trading fees by staking assets and supplying liquidity, which makes them liquidity providers. RUNE is a utility token for governance, staking, bonding, rewards, and trading.

By staking RUNE, users can also cast votes on governance proposals.

Where can you buy RUNE?

You can purchase THORChain’s native token RUNE on the CEXs and DEXs listed here.