THORChain (RUNE)

Cross-Chain Swaps

THORChain enables users to swap tokens directly between different blockchains (like Bitcoin and Ethereum) without needing a centralized exchange or wrapped tokens. This makes trading faster and more decentralized.

Liquidity Provision

Users can stake tokens to provide liquidity to the network. This helps keep the exchange running smoothly and allows others to trade assets easily.

Settlement Asset

THORChain uses its native token, RUNE, as a base or settlement asset in liquidity pools. This helps pairs of assets swap efficiently and securely.

Decentralized Exchange (DEX)

It acts as a decentralized exchange where users can trade assets without intermediaries, maintaining privacy and control over their funds.

Network Security and Governance

RUNE tokens are also used for securing the network through staking and for governance, allowing holders to participate in decisions about the platform’s future.

Pros

• THORChain enables decentralized, cross-chain swaps without wrapped or pegged tokens, allowing users to trade native assets like BTC, ETH, and BNB directly.
• It uses continuous liquidity pools paired with its native token RUNE, providing consistent liquidity and fast transaction execution.
• The protocol is non-custodial, so users keep control of their private keys and funds at all times.
• THORChain rewards liquidity providers and participants through system income distribution.
• It supports multiple blockchains including Bitcoin, Ethereum, Binance Chain, and others, with ongoing community governance and upgrades.
• Growing wallet and exchange integrations improve accessibility and usability.

Cons

• THORChain heavily depends on the RUNE token for liquidity and cross-chain operations, which can create risks tied to RUNE’s price volatility.
• The protocol experienced a lending insolvency crisis in early 2025, leading to the shutdown of its lending and savings products.
• Swap volumes and token price have shown volatility, reflecting market and internal challenges.
• The network has been used in some illicit activities due to its cross-chain swap capabilities, which can affect reputation.

For more details, visit thorchain.org.

Founders of THORChain

• John-Paul Thorbjornsen (JP Thor) is the main founder who revealed his identity in 2024 after operating under a pseudonym for years.
• Eric Voorhees is also recognized as a founder, known for his role in the crypto space and as CEO of ShapeShift.
• Chad Barraford is another founding contributor involved in the early development.
• The project was initially developed by a group of anonymous contributors focused on decentralization.

Institutional Investors

THORChain has about 17 institutional investors who have supported the project through various funding rounds.

Notable Individual and Private Investors

Some of the known investors include ICONIUM and Jon Carr-Harris, who have contributed in recent private equity rounds.

Strategic and Token Fund Investors

THORChain attracted private investors and token funds interested in becoming node operators and liquidity providers. These investors also help with partnerships and network growth.

Early Funding

The project started with seed investments and an Interchain Grant in 2019, followed by an Initial Exchange Offering (IEO) on Binance DEX.

For more details, visit the official website: thorchain.org

Halal Status of THORChain

• Yes, THORChain can be considered halal by some scholars because it operates as a decentralized liquidity network that facilitates asset swaps without interest (riba) or gambling (maysir).
• However, interpretations may vary depending on individual beliefs and the specific use of the token within different financial activities.