Frequently Asked Questions
THORChain is a decentralized liquidity protocol designed for cross-chain swaps between native assets like Bitcoin, Ethereum, and others. In blockchain development, it's used to build applications that require native asset trading without centralized exchanges or wrapped tokens.
THORChain achieves interoperability through a unique protocol that allows the direct exchange of assets across different chains. It uses nodes, the Cosmos SDK, and Tendermint consensus to enable secure, decentralized swaps without the need for token wrapping.
RUNE is the native token of THORChain and acts as the base asset in all liquidity pools. It is also used for network security through validator staking, and for governance decisions within the protocol.
Yes, THORChain enables developers to create cross-chain DEXs that support native asset swaps. These DEXs are built using the Cosmos SDK and integrate with THORChain liquidity pools for automated market making.
Users deposit native assets into liquidity pools paired with RUNE. When swaps occur, the pool rebalances and liquidity providers earn a share of transaction fees. Over time, this model supports long-term yield generation.
