Protocol Overview

THORChain is a decentralized cross-chain liquidity protocol that enables native asset swaps between blockchains directly between blockchains without intermediaries.

Architecture

Cosmos SDK

Built on Tendermint consensus with instant finality and IBC compatibility.

TSS Vaults

Threshold Signature Schemes distribute signing power across node operators — no single custodian.

Bifrost Bridge

Observes connected chains and facilitates secure cross-chain asset transfers via TSS vaults.

Midgard API

Layer-2 REST API providing real-time network data, pools, swaps, and node info.

Key Concepts

RUNE Token

Native settlement asset. Every swap between non-RUNE assets routes through RUNE (e.g., BTC → RUNE → ETH). RUNE is also the liquidity pair in every pool, and the bond asset for node operators.

Continuous Liquidity Pools

Slip-based fee formula where larger trades pay proportionally more. Pools never run out — trades always execute, at increasingly worse prices as depth is consumed.

Savers Vaults

Single-sided yield provision. Deposit one asset and earn yield without needing to provide RUNE as a liquidity pair.

Incentive Pendulum

Balances security vs liquidity. When bonded RUNE is low, more rewards flow to nodes. When pooled RUNE is low, more rewards flow to LPs.

Slip-Based Fees

Fee = input / (pool + input). Small trades pay near-zero. Large trades pay proportionally more, protecting LPs from whale manipulation.

Minimum Governance

Architecture Decision Records (ADRs) voted on by node operators. 67% threshold required. Covers parameter changes, chain listings, and protocol upgrades.

Supported Chains

Bitcoin

BTC

Ethereum

ETH

BNB Chain

BSC

Avalanche

AVAX

Cosmos Hub

GAIA

Dogecoin

DOGE

Litecoin

LTC

Bitcoin Cash

BCH

Tron

TRX

Base

BASE

Arbitrum

ARB

Polygon

MATIC

Optimism