From the FMFW.io blog.
We’re excited to welcome a new token listed on FMFW.io exchange — $RUNE by THORChain blockchain protocol!
Thorchain is a blockchain protocol built on Cosmos, the so-called “Internet of blockchains,” that aims to make all of crypto liquid. Simply put, THORChain finally makes it possible to trade BTC on the Bitcoin blockchain with ETH on the Ethereum blockchain — all without custodial intermediaries.
THORChain’s key objective is to be resistant to centralisation and capture whilst facilitating cross-chain liquidity. THORChain only secures the assets in its vaults, and has economic guarantees that those assets are safe.
In short, THORChain is a decentralized liquidity protocol like Uniswap. The way decentralized liquidity pools work — and this is true for THORChain as well — is as follows:
- Liquidity pools replace the CEX model of custodied assets and order books. Anyone can be an LP by providing two assets to the pool.
- Smart contracts automatically execute swaps between traders and the liquidity pool. This step removes the need for counterparties.
THORChain differs from the usual decentralized liquidity pool protocol because it can take assets from one blockchain and send out assets from another.
THORChain solves the cross-chain asset swap problem that’s plagued crypto for years with a rather complex yet brilliant mechanism: THORNodes.
To support native cross-chain asset swaps, THORChain introduced THORNodes into the mix. A THORNode is a THORChain node operator who simultaneously runs nodes on other blockchains like Bitcoin, Ethereum, or Litecoin.
THORChain’s decentralized liquidity protocol is made up of wallets on different blockchains so that when you deposit ETH, it goes to a native ETH wallet, and BTC goes to a native BTC wallet.
THORNodes check and verify deposits made to these wallets, then give the OK for transfers by jointly signing a multi-sig transaction.
RUNE provides the economic incentives required to secure the network and coordinate liquidity. RUNE has four key roles which are described below.
- Liquidity (as a settlement asset)
- Security (as a sybil-resistant mechanism, and a means for driving economic behaviour)
- Governance (signalling priority on-chain)
- Incentives (paying out rewards, charging fees, subsidising gas)
This article came directly from the FMFW.io blog, found on https://fmfw-io.medium.com/thorchain-token-rune-is-available-for-trading-on-fmfw-io-a59f5dce02be?source=rss-12ea66dd7e99——2