THORChain

THORChain is a decentralized cross-chain liquidity network that enables swaps between assets on different blockchains without wrapping them. RUNE is its native token and the settlement asset at the centre of every trade on the network.

How THORChain works

Every liquidity pool on THORChain pairs an external asset with RUNE. A swap from Bitcoin to Ethereum therefore routes through two pools: Bitcoin to RUNE, then RUNE to Ethereum. This hub-and-spoke design means the network never needs to issue a wrapped representation of an asset on another chain; users hold and receive native assets. Nodes run full clients for each supported chain and observe deposits directly, and they must bond RUNE to participate, which can be slashed if they act dishonestly.

The protocol's economic security depends on the bonded RUNE exceeding the value of assets held in pools, since node operators secure the vaults holding user funds. RUNE has a maximum supply of approximately 354 million tokens, all issued, with around 338 million in circulation.

Role in the ecosystem

THORChain occupies an unusual position because most cross-chain trading relies either on centralized exchanges or on wrapped assets and bridges. By settling in native assets, it avoids the custodial wrapping model that has been the source of several large bridge exploits. The network supports swaps across a substantial number of chains including Bitcoin, Ethereum, and several UTXO and EVM networks. Its history includes exploits in 2021 that were subsequently addressed, and its design remains one of the more discussed approaches to native cross-chain liquidity.