Buy THORChain

THORChain is a decentralized cross-chain liquidity protocol that allows users to exchange assets between different blockchains. This makes it possible to exchange Bitcoin for Ethereum, for example, without the need for a central exchange. This is special because traditionally, blockchain networks cannot communicate with each other due to technical differences, making it difficult to exchange assets without the intervention of a third party.

THORChain uses a unique system of liquidity pools, where users can deposit their cryptocurrencies. These pools contain both THORChain’s native RUNE token and supported cryptocurrencies. When a user wants to swap a token, one cryptocurrency is first converted to RUNE, and then RUNE is converted to the desired cryptocurrency. This dual-swap system ensures that each transaction can proceed without the intervention of a central party.

In addition to benefiting from being able to swap different cryptocurrencies more easily and affordably, users can also earn interest on their cryptocurrencies. The liquidity pools require tokens to facilitate swaps, and users can lend their tokens to the pools, for which they are rewarded with interest. This makes THORChain not only useful for traders, but also an attractive option for investors looking to generate passive income.

THORChain’s network uses a Proof-of-Stake (PoS) consensus mechanism combined with Tendermint’s Byzantine Fault Tolerance (BFT) technology. Nodes, acting as validators, are required to stake a significant amount of RUNE to participate in the network, which discourages malicious activity.

The RUNE token plays a central role in the THORChain ecosystem. RUNE is used for staking, governance, and as a reward for liquidity providers and node operators. The main function of RUNE is that it acts as an intermediary currency in all liquidity pools, meaning that every transaction on the network relies on RUNE.

Who founded THORChain?

THORChain was founded by an anonymous team of developers who participated in the Binance Dexathon in 2018. This anonymity is a deliberate choice to ensure the decentralized nature and security of the project. There is no formal company or central entity that governs THORChain. Instead, the project is driven by a community of developers and node operators. Development and maintenance of the code takes place on GitHub, where contributions from the community are welcomed and integrated.

THORChain offers several applications for both end users and developers:

• Asset Swapping: Users can easily, quickly, and affordably swap different cryptocurrencies across different blockchain networks without the need for a central exchange or party.
• Staking RUNE: Users can stake their RUNE to contribute to the network as a validator and earn rewards in RUNE tokens for doing so.
• Liquidity provision: Users can lend their cryptocurrencies to liquidity pools to support token swaps and earn rewards in the form of yield.
• Cryptocurrency Borrowing and Lending: Users can borrow and lend cryptocurrencies through the THORChain network, allowing them to earn returns or access additional liquidity.
• Participate in governance: RUNE token holders can participate in the governance of the project, while developers can contribute to its development.

THORChain enables swaps between different blockchain networks, making it a cross-chain liquidity protocol. This is achieved through continuous liquidity pools (CLPs) with RUNE acting as an intermediary token. Each liquidity pool contains RUNE and another supported cryptocurrency. When a user wants to perform a swap, the system first swaps one cryptocurrency for RUNE, then swaps the RUNE for the desired cryptocurrency via a second pool. The token swaps can be performed on THORSwap, the multi-chain DEX that offers an easy-to-use platform.

Liquidity pools are the core of the THORChain protocol. Any user with the right wallet can deposit tokens into the pools to support the protocol and earn rewards. These rewards come from the transaction fees paid by users of the protocol.

THORChain uses a Proof-of-Stake (PoS) consensus mechanism in combination with Tendermint Byzantine Fault Tolerance (BFT) technology. Nodes, acting as validators, must stake a significant amount of RUNE to participate in the network. This stake serves as a collateral, which should motivate nodes to act honestly. If they do not, they can lose (part of) the staked tokens.

Governance

The project is community driven, and there is no company or central party behind the governance and development of THORChain. Users who stake RUNE and node operators have a say in the development and improvement of the protocol. They can use their RUNE tokens to submit and vote on proposals for upgrades, additions, and changes.

The RUNE token, with a maximum supply of 500 million tokens, plays a crucial role within the THORChain ecosystem and has several functions. First, RUNE acts as an intermediary token in all liquidity pools on the network. This means that every transaction on THORChain uses RUNE to swap tokens. Second, RUNE is used for staking, where users stake their tokens to act as a validator and earn rewards.

Governance is another important feature of RUNE; token holders can vote on proposals and upgrades within the network. The decentralized nature of governance ensures that THORChain’s development is driven by the community behind the project. Additionally, node operators receive rewards in RUNE for their contributions to the security and operation of the network.

You can stake RUNE by setting up your own validator or by delegating your tokens to an existing validator. Most users choose delegation, as it is the easiest method to stake RUNE.

To start staking, you need RUNE tokens in a wallet that supports THORChain staking. You can buy RUNE at Bitvavo and transfer it to an external wallet. Then, connect your wallet to the THORChain staking platform, but you can also stake RUNE via other DeFi platforms. As a reward for staking, you will receive tokens, calculated based on your stake and network activity. The rewards are automatically paid out to the connected wallet.

THORChain distinguishes itself by the following unique features and properties:

• Cross-chain swaps without an intermediary: You can exchange assets between different blockchains that normally do not communicate with each other, without the intervention of a third party.
• Use of RUNE: The RUNE token is crucial as an intermediate token, making the protocol completely dependent on RUNE.
• Anonymous and decentralized team: THORChain was founded by an anonymous team and is community-driven, which underscores its decentralized nature.
• Combination of PoS and Tendermint BFT: The combination of Proof-of-Stake and Tendermint BFT ensures high security, efficient and cost-effective transactions.
• Liquidity Pools: Users can deposit cryptocurrencies into liquidity pools and earn rewards, which keeps the protocol running and provides returns to users.

Buy THORChain (RUNE) at Bitvavo. Both beginners and experienced traders can use our platform to buy, sell and trade RUNE . Follow these steps to buy RUNE tokens via our website or app:

1. Log in to your Bitvavo account or register a new account.
2. Add funds to your account by clicking on "Deposit".
3. Go to the THORChain (RUNE) buy page.
4. Enter the amount in Euros you want to spend or the number of RUNE tokens you want to buy and click "Buy".

After your purchase, the RUNE coins are automatically and directly added to your Bitvavo account, where you can easily manage and trade them. Selling RUNE tokens is just as easy from your account, so you can quickly respond to market changes.

After purchase, your RUNE tokens will be safely stored in your Bitvavo account. The majority of assets are stored in cold storage by Bitvavo, which means they are kept extra safe offline. We also recommend enabling two-factor authentication (2FA) to further protect your account.

Would you rather store your RUNE tokens in an external software or hardware wallet? After purchase, you can easily transfer your RUNE tokens to an external wallet by linking the wallet address to your Bitvavo account. This gives you full control over your cryptocurrencies and increases the security of your cryptocurrencies.