- What is THORChain and what does its token rune do?
- THORChain is a decentralized liquidity protocol that enables cross-chain swaps without wrapping assets. In other words, you can trade Bitcoin for Ethereum or other supported tokens directly across different chains. The native token is rune, which serves multiple purposes: it acts as a settlement asset for cross-chain trades, provides staking rewards to incentivize network security, and is used in governance decisions to influence protocol upgrades and fee structures. Rune is not tied to a single chain, and its value is influenced by network usage, liquidity, and the overall health of THORChain’s liquidity pools.
- How do cross-chain swaps work on THORChain, and what are the risks?
- THORChain uses continuous liquidity pools and a network of nodes to facilitate cross-chain swaps without custodians. When you swap, your asset is routed through the protocol’s liquidity pools, and the corresponding asset is released on the target chain. The process is designed to be trustless and non-custodial. Risks include smart contract bugs or exploits, liquidity fluctuations, impermanent loss in pools, and potential network downtime. Users should also verify that their chosen wallet supports THORChain-enabled swaps and be aware of price slippage and network fees. Regularly check official security audits and patch notes for the latest risk disclosures.
- Where can I buy or trade rune, and which wallets support THORChain?
- Rune is available on major centralized and decentralized exchanges that list THORChain’s token. You can typically trade rune against popular pairs like USD, BTC, ETH, and other assets depending on the exchange. For storage, use a wallet that supports THORChain-compatible assets and cross-chain functionality. Popular options include hardware wallets and software wallets with THORChain integration, as well as compatible non-custodial wallets. Always enable best security practices: use a hardware wallet for large holdings, enable two-factor authentication on exchanges, and never share private keys or seed phrases. Check the official THORChain resources for the latest list of supported wallets and exchange integrations.
- What is the current supply of rune, and how does circulating vs max supply affect potential price?
- As of now, rune has a circulating supply of roughly 351 million tokens out of a max supply of 500 million. The capped max supply means there is a finite number of rune tokens, which can influence scarcity over time. However, price is primarily driven by demand for cross-chain liquidity, network usage, and staking activity. Staking rune can lock supply temporarily, which may reduce circulating supply and impact price dynamics. Investors should consider both on-chain utility (liquidity provision, governance) and macro factors (crypto market cycles, adoption of cross-chain swaps) when assessing long-term value.
- How can I stake rune, and what are the expected rewards and risks?
- Staking rune typically involves locking tokens in a THORChain-compatible wallet or via supported staking services to secure liquidity pools and network consensus. Stakers earn rewards funded by swap fees and network incentives. Rewards vary with network activity, pool performance, and overall rune supply dynamics. Risks include price volatility during the lock period, potential penalties for misbehavior by validators (in governance-centric setups), and liquidity opportunity costs if you withdraw during periods of high fee pressure or low liquidity. Before staking, review current annual percentage yields (APYs) on trusted platforms, understand the lockup terms, and ensure your custody solution supports unstaking without long cooldown periods.
