Understanding XRUNE

XRUNE serves as the settlement currency within the THORSTARTER protocol.

Once a project is chosen, an extra tranche of XRUNE is added alongside the project’s token-“ASSET”-to support the first IDO launch. How liquidity and related resources will be provisioned for Thorstarter IDOs will be outlined later.

By listing XRUNE as a pair on both Thorchain and on AMMs across different networks, Thorstarter functions as a liquidity relay for long-tail crypto assets. Swaps for cross-chain assets can be executed through an XRUNE-ASSET liquidity relay, even if ASSET is not part of an approved Thorchain pool. In doing so, Thorstarter positions cross-chain swapping as a different option to centralized exchanges (CEXs) such as Coinbase and Binance, and to single-chain DEXs like Bancor, Uniswap and Pancakeswap.

A further relay approach is required to swap using the RUNE pools on Thorchain. XRUNE acts as that bridge by serving as a secondary token paired with base RUNE, enabling access to cross-chain liquidity supplied by CLPs. New assets can be connected by creating new XRUNE-ASSET pools that pair with XRUNE, letting them access the same liquidity available to shorter-tail crypto leaders.

In summary, Thorstarter builds on Thorchain’s original concept and adds a liquidity relay layer. Tokens paired with XRUNE can reach RUNE liquidity without needing to satisfy Thorchain’s minimum RUNE liquidity threshold in its pools. This supports cross-chain swapping without relying on the required RUNE liquidity depth, and can increase liquidity for both base RUNE and XRUNE asset pairings.

Function of XRUNE

So, XRUNE delivers three main functions:

First, XRUNE is paired with RUNE in a liquidity pool on Thorchain. LPs receive fees in both RUNE and XRUNE, determined by the transaction volume between these two assets on a block-by-block basis. This aligns with the standard rewards structure used across other approved RUNE-ASSET pools on Thorchain.

Second, XRUNE is a token that provides early access to projects launching an IDO on Thorstarter. The Thorstarter DAO seeds approved projects with XRUNE liquidity, which results in XRUNE-ASSET pools on secondary market AMMs. XRUNE must be held to take part in the initial liquidity event.

Third, XRUNE can be paired with ASSETs on external AMMs-either via liquidity provision by the Thorstarter DAO or through LPs seeking yield exposure. Fees for external LPs follow the AMM’s fee schedule. For Ethereum-based AMMs like Uniswap and Sushiswap, the fee is 0.3%. For Pancakeswap on BSC, the fee is 0.2%.

So, XRUNE delivers three main functions:

First, XRUNE is paired with RUNE in a liquidity pool on Thorchain. LPs receive fees in both RUNE and XRUNE, determined by the transaction volume between these two assets on a block-by-block basis. This aligns with the standard rewards structure used across other approved RUNE-ASSET pools on Thorchain.

Second, XRUNE is a token that provides early access to projects launching an IDO on Thorstarter. The Thorstarter DAO seeds approved projects with XRUNE liquidity, which results in XRUNE-ASSET pools on secondary market AMMs. XRUNE must be held to take part in the initial liquidity event.

Third, XRUNE can be paired with ASSETs on external AMMs-either via liquidity provision by the Thorstarter DAO or through LPs seeking yield exposure. Fees for external LPs follow the AMM’s fee schedule. For Ethereum-based AMMs like Uniswap and Sushiswap, the fee is 0.3%. For Pancakeswap on BSC, the fee is 0.2%.