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What is THORChain (RUNE), and what makes it unique in the crypto world?
THORChain is a decentralized liquidity protocol. Its main objective is to provide crypto swaps between different chains without involving any third parties.
How does THORChain achieve cross-chain compatibility?
For this, THORChain employs its native token, RUNE. With its help, the protocol creates liquidity pools for a wide range of crypto assets on various blockchains.
What is the significance of RUNE in the THORChain ecosystem?
RUNE serves on THORChain ecosystem for liquidity provision, governance, and security.
Can I provide liquidity to THORChain and earn rewards?
Yes, you can do this by pairing assets and then adding them to liquidity pools of the protocol. It works like this: you earn a portion of trading fees and may further get rewards in RUNE.
What is the process for swapping assets on THORChain?
Users deposit a chosen cryptocurrency into a liquidity pool, and then the protocol automatically calculates the fees depending on blockchain activity. THORChain faciliates swaps between Bitcoin, Ethereum, BNB Chain, and Avalanche.
Is THORChain secure and trustless?
THORChain employs a unique consensus algorithm called “Bifröst”. This one creates validators randomly, which ensures secure and trustful operations.
What's the role of nodes and validators in THORChain?
Nodes and validators secure the network, validate transactions, and maintain consensus.
How does THORChain address impermanent loss for liquidity providers?
THORChain adds a slip-based fee for every swap, instead of a fixed-rate fee. This ensures that liquidity is boosted where it's needed and reduces risks of impermanent loss.