RUNE is a blood of THORChain Interoperable Network, application-specific blockchain that facilitates cross - chain liquidity pools.
- Cross-Chain Exchange: Traders can swap assets directly between chains without needing to use a centralized exchange. Major blockchains such as Bitcoin, Ethereum, Binance Chain and others can be supported today, due to THORChain's technical design.
- Stake Unproductive Assets for Yield: Holders of unproductive assets (e.g. BTC) can stake them in liquidity pools to earn a yield from trading fees and new RUNE issuance. THORChain's liquidity pool design insulates stakers from losses better than other models (Uniswap), further incentivizing staking.
- Run a Node for Yield: Anyone can bond the minimum amount of RUNE required to operate a node (currently 1m RUNE) and run the network. In return, they can earn a yield from trading fees and new RUNE issuance.
- Arbitrage Opportunities: Arbitrageurs can earn a profit, while bringing the ratio of assets in liquidity pools back to their equilibrium.
To learn more about Thorchain Network watch this presentation
- Permissionless & Private: Anyone in the world can directly swap assets cross-chain without needing permission or disclosing their identity. In addition, node operators are anonymous and no one can identify which of them signed off on a specific transaction.
- Staked Liquidity is Non-Custodial: Assets are pooled on-chain, rather than entrusted to a third-party custodian, and secured by a decentralized network.
- Unique Fee Model: The Slip Based Liquidity fee used by Continuous Liability Pool provides a unique way to incentivize liquidity providers (supply) to actively search for pools where transaction size and volume (demand) suggests there's a need for more liquidity.
- Bootstrapping: RUNE is used to bootstrap liquidity and security through preset rewards early on. This reward declines, but is sufficient enough to also offset any risk of under-performance relative to a buy and hold strategy for many years.