Threenvest > Decentralized exchange reviews

Thorchain Review 2024

Autor

Alejandro Borja

Revisor

Xavier Tarrasó

Last update: 6 months ago

Our veredict

THORChain is a notable player in the decentralized finance (DeFi) space, particularly attractive for its unique cross-chain liquidity feature, which allows users to swap assets across different blockchains directly. This exchange, built on its own bespoke blockchain using the Tendermint consensus, is designed to operate without wrapped or synthetic tokens, providing a more transparent and straightforward swap mechanism for multiple assets including Bitcoin, Ethereum, and others. For users, the key advantages of THORChain include the ability to earn yields through liquidity provision without the need to surrender custody of their assets, enhancing security against some common risks seen in other platforms. However, it’s important to acknowledge the risks involved, including exposure to impermanent loss and smart contract vulnerabilities which were highlighted by several exploits in 2021.

THORChain is best suited for users who are comfortable with a slightly higher risk profile and are interested in participating in a multi-chain DeFi environment. It may not be the best choice for absolute beginners due to its complex mechanics and the somewhat technical nature of managing assets across different blockchains. The project’s innovative approach to DeFi and cross-chain swaps makes it a compelling option for experienced users seeking diversified liquidity provision opportunities and those interested in the broader utility of cryptocurrencies beyond mere trading on single-chain environments.

Pros

Cons

4,4

Threenvest Score

Network

THORChain

Fees

fluctuates

With the confidence of Threenvest

Robust Security Methods THORChain employs advanced security protocols, including a network of anonymous validator nodes using a Byzantine Fault Tolerance (BFT) consensus mechanism, ensuring the security and integrity of cross-chain transactions. Validators must bond RUNE tokens, which are slashed if any malicious activity is detected.

Strong Community and Ecosystem Support The THORChain ecosystem is supported by a vibrant and active community. Regular updates, community governance, and a strong developer base contribute to its continuous improvement and resilience, making it a reliable platform for both new and experienced traders.

Decentralized and Transparent As a fully decentralized exchange, THORChain eliminates the need for centralized control, reducing the risk of censorship and single points of failure. The platform’s transparency is enhanced by its open-source code and community-driven governance, promoting trust and accountability.

Innovative Cross-Chain Capabilities THORChain’s ability to enable cross-chain swaps without relying on wrapped tokens is a groundbreaking feature. This innovation simplifies the trading process, reduces counterparty risk, and offers users more flexibility compared to other exchanges that require wrapped assets.

High Trading Volume and Liquidity THORChain facilitates significant trading volumes and maintains deep liquidity pools. This high liquidity is crucial for efficient market operations, ensuring that users can execute large trades with minimal slippage, which is a significant advantage over less liquid platforms.

Best Crypto Decentralized Exchange

Why can you trust Threenvest?

At Threenvest, we are unwaveringly committed to providing you with unbiased ratings and information. Our editorial team operates independently, free from any advertising influence. We use meticulous, data-driven methodologies to evaluate financial products and companies, ensuring that all assessments are conducted on a level playing field.

To better understand our editorial guidelines and the investment methodology that supports our ratings, you can explore the information in our editorial policy.

About THORChain

Why Choose THORChain?

THORChain stands out as a powerful decentralized exchange that offers unique benefits for cross-chain trading. One of its strongest points is the ability to swap native assets across different blockchains without the need for wrapped tokens. This innovation preserves the integrity and security of your assets, making trading more straightforward and secure. Additionally, the platform employs a Byzantine Fault Tolerance (BFT) Proof-of-Stake consensus mechanism, which ensures rapid and secure transaction validation. This robust security framework, combined with the platform’s transparency and decentralized nature, provides a high level of trust and reliability for users.

The trading experience on THORChain is designed to be seamless and efficient. With Continuous Liquidity Pools (CLPs) ensuring consistent liquidity and fair market pricing, users can enjoy a smooth and effective trading environment. The platform also supports a variety of financial activities, including cross-chain lending and synthetic asset creation, making it versatile for different types of traders and investors. The user-friendly interface of ThorSwap, THORChain’s decentralized automated market maker (AMM), further enhances the trading experience by simplifying navigation and execution of trades.

However, it’s important to note some limitations. THORChain does not support certain notable cryptocurrencies like Monero (XMR), Zcash (ZEC), and Cardano (ADA), which could be a drawback for users who trade these assets. Moreover, regulatory restrictions in key markets such as the United States limit its accessibility. Despite these challenges, THORChain’s innovative approach and strong community support make it a valuable option for experienced traders seeking a secure and versatile trading platform. At Threenvest, we believe THORChain has the potential to significantly impact the decentralized trading landscape, providing users with a robust and reliable solution for cross-chain transactions.

Where it falls short

Limited Cryptocurrency Support One of the primary areas where THORChain could improve is in the range of supported cryptocurrencies. While it facilitates cross-chain swaps for many popular assets like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), it does not support some notable cryptocurrencies such as Monero (XMR), Zcash (ZEC), and Cardano (ADA). Expanding its support to include a wider variety of assets would make THORChain more appealing to a broader user base and enhance its competitiveness with other exchanges that offer a more extensive selection of trading pairs.

Regulatory Restrictions Another significant challenge for THORChain is its limited accessibility in key markets like the United States. Due to regulatory restrictions, users from the U.S. cannot participate in THORChain’s ecosystem. This exclusion not only limits the platform’s user base but also its potential growth and adoption. Addressing these regulatory hurdles, perhaps by seeking necessary licenses or adapting its model to comply with different jurisdictions, would significantly enhance THORChain’s global reach and user engagement.

Features	Explanation
Minimum Trade	THORChain allows users to trade with relatively low minimums, accommodating small-scale traders but requiring enough to maintain liquidity integrity.
Trading and Transaction Fees	Fees on THORChain are competitive within the DeFi space, ensuring affordability while supporting network and liquidity providers.
Number of Cryptocurrencies	THORChain supports a moderate range of cryptocurrencies focused primarily on major assets, limiting variety but enhancing quality.
Crypto-to-Crypto Trading Pairs	The platform excels in offering cross-chain trading pairs, enabling direct swaps between significant cryptocurrencies without intermediaries.
Website Transparency	THORChain provides detailed documentation and open-source code, fostering trust through transparency in operations and development.
Credit/Debit Card	Primarily operates on its own network with bridges to major chains like Bitcoin and Ethereum, somewhat limiting compared to multi-network DEXs.
Storage Offering	As a decentralized platform, THORChain does not offer custodial storage, relying on users to manage their own wallet security.
Staking and Rewards	Offers excellent staking rewards and incentives for liquidity providers, making it attractive for users looking to earn through participation.
Mobile App and Desktop	The THORChain website is user-friendly, providing essential information clearly but could improve in navigational aspects and user interface design.
Customer Service	Customer support is available through community channels, providing adequate but not real-time support; could benefit from more direct customer service options.
Deposit and Withdraw	THORChain supports straightforward deposit and withdrawal mechanisms that are inherently secure through decentralized operation, though subject to typical blockchain network delays.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As a seasoned observer of the DeFi landscape, I highly recommend THORChain for users seeking a robust platform for cross-chain trading. Its innovative approach to enabling direct swaps between disparate cryptocurrencies sets it apart. However, prospective users should acquaint themselves with its security history and the inherent complexities of operating within a multi-chain environment to fully leverage its offerings.

Fees

THORChain employs a distinct fee structure aimed at ensuring network security and providing economic incentives for its participants. The platform charges several types of fees: a fixed outbound fee, a dynamic liquidity fee, and a slip-based fee. Outbound Fee: This is a fixed fee applied to transactions leaving the THORChain network. It covers the cost of sending assets from the network to an external blockchain, ensuring the network remains sustainable. Liquidity Fee: This dynamic fee varies based on the liquidity of the pool involved in the transaction. It serves to reward liquidity providers, who are essential for the functioning of the protocol. This fee is crucial in maintaining the balance and availability of assets across the network. Slip-Based Fee: Designed to mitigate the risk of market manipulation by large traders (whales), this fee is calculated based on the impact of the trade on the pool’s price. Larger trades that significantly alter the pool’s balance incur higher fees. These fees are distributed to liquidity providers as compensation for the potential price impact of large trades . This multi-faceted fee structure not only ensures the economic viability of the THORChain network but also promotes fair trading practices and rewards participants who contribute to the ecosystem’s liquidity.

Pros

Cons

Detailed Analysis of THORChain Fees

THORChain employs a multi-layered fee structure to ensure network sustainability, incentivize participants, and prevent market manipulation. This includes the following fees:

Outbound Fee: This is a fixed fee charged on transactions leaving the THORChain network. It covers the cost of executing cross-chain transactions and is designed to be minimal compared to traditional exchanges. This fee ensures that the network remains financially viable while facilitating smooth asset transfers across different blockchains.
Liquidity Fee: The liquidity fee is dynamic and varies based on the liquidity of the pool involved in the transaction. This fee rewards liquidity providers, who play a crucial role in maintaining the network’s liquidity. By dynamically adjusting based on pool liquidity, this fee ensures that providers are adequately compensated, promoting sustained participation and healthy liquidity levels.
Slip-Based Fee: This fee is unique to THORChain and is designed to prevent market manipulation by large traders (whales). It is calculated based on the impact of a trade on the pool’s price, with larger trades that cause significant price shifts incurring higher fees. The slip-based fee helps maintain market stability by discouraging disruptive large trades and redistributing these fees to liquidity providers as compensation for the potential price impact .

Economic Incentives

Validators: Validators play a crucial role in securing the network and facilitating transactions. They are required to stake a significant amount of RUNE (minimum 1 million RUNE) to participate in the network. Validators earn rewards from transaction fees, providing them with a steady income stream. This staking mechanism not only secures the network but also aligns validators’ interests with the network’s health, as they stand to lose their staked RUNE if they attempt any malicious activities .
Liquidity Providers: Liquidity providers are incentivized through a share of the fees generated by the network. They earn rewards from the liquidity and slip-based fees. This system ensures that liquidity providers are fairly compensated for their contributions, encouraging more users to add liquidity to the pools, which in turn enhances the overall liquidity and trading experience on THORChain .

Summary

THORChain’s fee structure is carefully designed to balance the needs of users, liquidity providers, and validators. By incorporating outbound, liquidity, and slip-based fees, the platform ensures efficient cross-chain transactions, adequate compensation for liquidity providers, and protection against market manipulation. This comprehensive fee system not only supports the network’s economic model but also promotes a stable and secure trading environment for all participants .

Product selection

THORChain offers a robust suite of services and products designed to facilitate seamless cross-chain trading and liquidity provision. At the heart of its ecosystem is the RUNE token, which serves multiple roles including settlement, governance, and security. This versatile token ensures that all liquidity pools within the network maintain a balanced and consistent system, enhancing the overall efficiency and security of transactions. One of the standout features of THORChain is its Continuous Liquidity Pools (CLPs), which provide ‘always-on’ liquidity for all assets within the system. These pools allow users to engage in native cross-chain trades without relying on wrapped tokens, preserving the integrity and security of their assets. Additionally, THORChain supports a variety of financial activities beyond simple asset swaps, such as cross-chain lending and the creation of synthetic assets. THORChain also employs several innovative protocols to ensure seamless operations and enhance scalability. The Bifröst Protocol enables interoperability between different blockchains, while the Yggdrasil Protocol addresses scalability issues, and the Aesir Protocol focuses on on-chain governance. These protocols collectively support THORChain’s vision of creating a unified, liquid, and decentralized trading environment that can accommodate a wide array of digital assets.

Pros

Cons

Read more about product selection in THORChain

Detailed Overview of THORChain’s Services and Products

THORChain offers a comprehensive suite of services and products designed to facilitate seamless cross-chain swaps, ensuring users maintain custody of their assets while engaging in decentralized finance activities. Here’s a detailed look at what THORChain offers:

Native Cross-Chain Swaps: THORChain enables users to swap assets across different blockchains without the need for wrapped tokens. This is facilitated by its Continuous Liquidity Pools (CLPs) and the use of RUNE as a settlement asset, ensuring efficient and secure transactions across various blockchain networks .
Continuous Liquidity Pools (CLPs): CLPs provide always-on liquidity for all assets within the system. These pools allow users to swap assets seamlessly and ensure fair market pricing without relying on external oracles. This system democratizes arbitrage opportunities, making it more attractive for liquidity providers .
RUNE Token: The RUNE token is central to the THORChain ecosystem. It serves multiple roles including settlement, governance, and security. Each liquidity pool on THORChain is paired with RUNE, and the token is used for staking by validators. RUNE also acts as an incentive for liquidity providers and participants in the network .
ThorSwap: ThorSwap is THORChain’s decentralized exchange (DEX) platform. It offers a user-friendly interface for trading various cryptocurrencies natively across different blockchains. ThorSwap eliminates the need for web extensions like MetaMask by providing a built-in non-custodial wallet, making it accessible and secure for users .
Bifröst Protocol: The Bifröst Protocol is the cross-chain bridge system that enables interoperability between different blockchain networks. This protocol is essential for facilitating seamless asset swaps and maintaining the integrity of transactions across various chains. It ensures secure and trustless cross-chain transfers, contributing to the overall robustness of the THORChain ecosystem .
Staking and Liquidity Provision: THORChain incentivizes users to provide liquidity to its pools by offering rewards through swap fees and emissions. Liquidity providers earn yields by pairing their assets with RUNE, contributing to the network’s liquidity and receiving fair compensation for their contributions. This system helps maintain high liquidity and reduces the risk of impermanent loss .
Synthetic Assets: THORChain supports the creation of synthetic assets, which are blockchain-based financial instruments that provide liquidity and enable users to engage in various financial activities beyond simple swaps. This includes lending, borrowing, and creating composites, further expanding the utility of the platform .
Governance: THORChain’s governance is decentralized, with RUNE holders participating in decision-making processes. Validators must bond substantial amounts of RUNE to ensure the network’s integrity, and the incentive pendulum dynamically adjusts rewards to maintain a balance between validators and liquidity providers .
Security Features: The network employs multiple security measures including a Byzantine Fault Tolerance (BFT) consensus mechanism, a strict slashing policy for malicious validators, and a robust validator rotation system. These features ensure the network remains secure and resilient against attacks .
Additional Financial Primitives: Beyond swaps, THORChain is exploring the development of additional financial primitives such as self-paying loans and other innovative financial instruments. This ongoing evolution positions THORChain as a versatile platform in the DeFi space .

THORChain’s comprehensive suite of services and products, combined with its focus on decentralization, security, and user accessibility, makes it a significant player in the decentralized liquidity protocol landscape.

Account opening

Opening an account on THORChain is a straightforward process that emphasizes user control and security. To start, users need to create a non-custodial wallet, which can be done directly on the THORChain platform without requiring browser extensions like MetaMask. This wallet allows users to interact safely with the THORChain ecosystem while maintaining custody of their assets. Once the wallet is set up, users can immediately start participating in the network by providing liquidity, swapping assets, or staking RUNE tokens. The platform’s intuitive interface guides users through each step, ensuring a seamless onboarding experience .

Pros

No Browser Extensions Required: Users can create non-custodial wallets directly on the platform without needing extensions like MetaMask.
User Control: Maintains user custody of assets throughout the account creation and trading process.
Intuitive Interface: The platform guides users seamlessly through account setup and initial trades.

Cons

Read more about account opening in THORChain

Detailed Account Opening Process on THORChain

How to Sign Up on THORChain

Visit the Platform: Go to the THORChain interface, such as ThorSwap, through your web browser.
Create a Wallet:
- You do not need browser extensions like MetaMask. Instead, THORChain offers a built-in non-custodial wallet directly on the homepage.
- Click on “Create Wallet” to start the process.
- Generate a new strong wallet and back up your seed phrase securely.
- Download the Keystore file to your device for additional security.
Connect Your Wallet:
- Once your wallet is created, connect it to the THORChain interface by following the on-screen instructions.
- You will receive addresses for all THORChain-connected blockchains, and these addresses will be in your possession, recoverable using your seed phrase.

Opening an Account

After setting up your wallet, you are essentially ready to use THORChain. There is no formal account creation process like centralized exchanges. The non-custodial wallet acts as your gateway to interact with the ecosystem securely.

Buying Your First Cryptocurrency

Deposit Funds:
- Ensure your wallet is funded with cryptocurrency. THORChain does not support direct fiat deposits, so you need to acquire crypto (such as BTC or ETH) from another source and transfer it to your THORChain wallet.
Access ThorSwap:
- Use the ThorSwap interface to initiate a swap. Select the cryptocurrency you want to swap from and to, enter the amount, and follow the prompts to execute the swap.
Complete the Swap:
- Confirm the transaction details and execute the swap. The platform will handle the rest, leveraging its liquidity pools to facilitate the exchange.

Account Types

THORChain does not have traditional account types as seen on centralized platforms. Instead, your interaction level with the platform is dictated by your wallet and the assets within it. The main roles include:

Users: Who perform swaps and other transactions.
Liquidity Providers: Who supply liquidity to the pools and earn rewards.
Node Operators: Who validate transactions and maintain the network security.

How to Use THORChain

Swapping Assets: Access the ThorSwap interface, connect your wallet, and initiate swaps between different cryptocurrencies without the need for wrapped tokens.
Providing Liquidity: Add assets to liquidity pools and earn rewards from swap fees and block emissions.
Staking: Stake RUNE tokens to participate in network governance and earn staking rewards.

Registration and KYC

No KYC Requirements: THORChain emphasizes user privacy and does not require Know Your Customer (KYC) verification for any of its services. This allows users to maintain anonymity while interacting with the platform.

In summary, the THORChain account setup process is streamlined and user-friendly, focusing on maintaining user custody and providing a decentralized trading experience. The lack of KYC requirements and the built-in non-custodial wallet make it accessible for users who prioritize privacy and security.

Security

THORChain has built a robust security framework to ensure the safety of users’ assets and the integrity of the network. The platform employs a Byzantine Fault Tolerance (BFT) Proof-of-Stake (PoS) consensus mechanism to secure its blockchain. This system relies on a network of anonymous validator nodes that validate transactions and maintain the ledger. These nodes must bond a significant amount of RUNE tokens, creating a strong economic incentive to act honestly since malicious behavior would result in a loss of their bonded RUNE . The network also uses a continuous liquidity pool (CLP) model, which mitigates the risks of impermanent loss for liquidity providers. Security is further enhanced by the absence of centralized oracles, reducing potential points of failure and manipulation. Instead, THORChain relies on arbitrage traders to maintain accurate market prices across its pools . Overall, THORChain’s decentralized architecture, combined with its innovative security protocols and economic incentives, makes it a secure platform for cross-chain cryptocurrency trading. The platform’s emphasis on decentralization and trustlessness ensures that users can trade and provide liquidity with confidence, knowing their assets are protected by a resilient and transparent system .

Pros

Strong Economic Incentives: Validators are required to stake a significant amount of RUNE (minimum 1 million RUNE), aligning their financial interests with the security of the network.
Byzantine Fault Tolerance: Uses Tendermint BFT consensus mechanism, providing robust security and reliability in transaction validation.
Strict Slashing Policy: Validators face severe penalties for malicious activities, ensuring they have a strong financial disincentive to compromise the network.

Cons

Customer service

THORChain offers a comprehensive support system designed to assist users with their trading and liquidity provision activities. The platform provides various channels for customer support, including detailed documentation, community forums, and social media channels where users can get real-time assistance. Additionally, the THORChain community is highly active, with many experienced users and developers available to help newcomers navigate the platform and resolve any issues they might encounter . Customer satisfaction is a priority for THORChain, and the platform’s transparency and community-driven support model contribute significantly to its positive reputation. While there is no traditional customer service hotline, the decentralized nature of THORChain means that support is often faster and more collaborative, leveraging the knowledge and expertise of a global user base to solve problems effectively . Overall, THORChain’s customer support and community engagement are robust, providing users with the resources and assistance needed to utilize the platform effectively. This approach not only fosters a strong sense of community but also ensures that users can confidently manage their assets and participate in the network’s activities .

Pros

Active Community Support: THORChain provides responsive support through community forums and social media platforms, including Discord and Telegram. These platforms are actively moderated, ensuring that user queries are addressed promptly .
Multiple Support Channels: Users can access support through various channels, providing flexibility and convenience in seeking assistance .
Engaged Community: The active participation of community members and moderators fosters a helpful environment, enhancing the overall user support experience .

Cons

Read more about customer service in THORChain

Customer Service Section for THORChain

Customer Support

THORChain provides customer support primarily through its active community on various platforms. Users can get help by engaging with community moderators and other users on forums and social media channels such as Discord and Telegram. These platforms are monitored by moderators who respond promptly to user queries, ensuring that most issues are addressed quickly and efficiently. This decentralized approach to customer support leverages the collective knowledge of the community, providing a robust support network for users.

Reputation and Customer Feedback

User feedback for THORChain is generally positive, with many appreciating the platform’s ability to perform native cross-chain swaps without wrapped tokens, which enhances both security and convenience. The decentralized nature of THORChain and its continuous liquidity pools have been praised for providing a seamless trading experience and fair pricing. However, some users have expressed concerns over the anonymity of the development team, which can affect transparency and trust .

Contact Methods

Users can contact THORChain support through the following methods:

Discord: Provides real-time support and community interaction.
Telegram: Another platform for community engagement and support.
Social Media: Users can also reach out through THORChain’s Twitter handle for updates and support.

Response Time

The response time for queries on Discord and Telegram is generally quick, often within minutes, due to the active presence of community moderators and engaged users. This ensures that users get timely assistance for their issues, enhancing the overall support experience.

Additional Considerations

While THORChain excels in providing community-based support, it lacks direct customer service options such as phone or live chat. This could be a limitation for users who prefer more traditional support channels. Additionally, the decentralized and community-driven approach may not suit everyone, particularly those new to decentralized finance (DeFi) who may need more guided assistance . Overall, THORChain’s customer service leverages an active and supportive community, ensuring that users have access to timely and effective assistance through various channels. However, the absence of direct customer service options and the anonymity of the development team are notable points that users should consider.

Is THORChain Right for You?

You Value Decentralization and Security: If maintaining custody of your assets and engaging in truly decentralized finance is important to you, THORChain is an excellent choice. The platform enables native cross-chain swaps without relying on wrapped tokens, ensuring that you always retain control over your assets. Its robust security measures, including a Byzantine Fault Tolerance consensus mechanism and strict validator slashing policies, further enhance the safety of your transactions.
You Seek High Liquidity and Efficient Trading: THORChain’s Continuous Liquidity Pools (CLPs) provide consistent liquidity and fair pricing, making it a suitable platform for users looking for efficient and reliable trading experiences. The ability to trade a wide range of native cryptocurrencies across multiple blockchains without significant slippage ensures that you get the best possible execution for your trades.
You Prefer Community-Driven Support: If you appreciate a community-centric approach to customer support, THORChain’s active forums on Discord and Telegram are ideal. The community’s collective knowledge and the presence of responsive moderators mean that you can get help quickly and effectively. However, if you prefer traditional support methods like phone or live chat, you might find the lack of direct support options to be a limitation.

THORChain is well-suited for users who prioritize decentralization, seek high liquidity, and appreciate community-driven support. Its unique features and security measures make it a strong contender in the DeFi space, though it may not be the best fit for those who require more conventional support options.

Threenvest score

4,4

Network

THORChain

Earn

Yes

Fees

fluctuates

On the exhange website

Threenvest score

4,5

Network

Ethereum

Earn

Yes

Fees

0,30%

Threenvest score

4,4

Network

BSC

Earn

Yes

Fees

0,25%

Available cryptocurrencies and countries available

As of the beginning of 2024, THORChain supports approximately 50 cryptocurrencies, including major ones like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Litecoin (LTC). However, notable cryptocurrencies like Monero (XMR), Zcash (ZEC), and Cardano (ADA) are not available on the platform.
THORChain is accessible in a wide range of countries, including the United Kingdom, Germany, France, Japan, Canada, and Australia. However, important markets where users cannot open accounts include the United States, North Korea, Iran, and Syria due to regulatory restrictions. This ensures that while the platform has broad accessibility, it adheres to global compliance standards.

Main cryptocurrencies available

Bitcoin (BTC)
Ethereum (ETH)
Binance Coin (BNB)
Litecoin (LTC)
Bitcoin Cash (BCH)
Dogecoin (DOGE)
Polkadot (DOT)
Chainlink (LINK)
Uniswap (UNI)
Aave (AAVE)
SushiSwap (SUSHI)
Maker (MKR)
Terra (LUNA)
Solana (SOL)
Avalanche (AVAX)
Fantom (FTM)
Thorchain (RUNE)
Cosmos (ATOM)
Algorand (ALGO)
Tezos (XTZ)

Main countries where you can open an account

United Kingdom
Germany
France
Japan
Canada
Australia
South Korea
India
Singapore
Netherlands
Brazil
Mexico
Switzerland
Spain
Italy
Sweden
Norway
Finland
Denmark
Austria

FAQs

What is THORChain and how does it work?

THORChain is a decentralized liquidity protocol that enables cross-chain swaps. Users can trade native assets across different blockchains without using wrapped tokens. The network employs validator nodes and a Byzantine Fault Tolerance (BFT) consensus to secure transactions and maintain network integrity.

Which cryptocurrencies are supported on THORChain?

THORChain supports around 50 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Litecoin (LTC), and Solana (SOL). However, some notable cryptocurrencies like Monero (XMR), Zcash (ZEC), and Cardano (ADA) are not available.

Is THORChain safe to use?

THORChain employs a robust security framework with validator nodes and BFT consensus. Validators bond RUNE tokens, which are slashed if they act maliciously. This setup, combined with the decentralized nature of the platform, provides a high level of security and trustworthiness.

In which countries can I open a THORChain account?

THORChain is accessible in numerous countries, including the United Kingdom, Germany, France, Japan, Canada, and Australia. However, it is not available in the United States, North Korea, Iran, Syria, and a few other countries due to regulatory restrictions.

What is RUNE and what role does it play on THORChain?

RUNE is the native utility token of THORChain. It is used for transaction fees, staking, governance, and as a settlement asset within the liquidity pools. RUNE pairs with every asset in the liquidity pools, facilitating efficient and seamless cross-chain swaps.

What fees are involved in using THORChain?

THORChain charges a fixed outbound fee, a dynamic liquidity fee for swaps, and a slip-based fee to prevent market manipulation. These fees reward liquidity providers and validators, ensuring the network’s security and liquidity.

How can I earn rewards on THORChain?

By providing liquidity to THORChain’s pools, users can earn rewards. These rewards come from swap fees generated by the network and additional RUNE emissions, which help mitigate the risk of impermanent loss for liquidity providers.

Final opinion on THORChain

THORChain offers a compelling solution for those looking to engage in cross-chain cryptocurrency trading without relying on wrapped tokens. Its innovative use of RUNE as a settlement asset and the employment of validator nodes for security ensure that users can trade natively across various blockchains with confidence. The decentralized nature of THORChain, combined with its robust security measures, makes it a standout option in the DeFi space. The ability to maintain full control over one’s assets while participating in cross-chain swaps is a significant advantage, especially for traders who prioritize decentralization and security.

However, THORChain does face some limitations. Its exclusion of notable cryptocurrencies like Monero (XMR), Zcash (ZEC), and Cardano (ADA) may deter some users. Additionally, regulatory restrictions in key markets such as the United States limit its accessibility. Compared to other exchanges, THORChain’s fee structure, while transparent, can be complex for beginners. Despite these challenges, THORChain’s innovative approach and strong community support position it as a valuable player in the decentralized exchange landscape. At Threenvest, we recognize THORChain’s potential to revolutionize cross-chain trading and recommend it for experienced traders seeking a secure and versatile trading platform.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.