FAQ

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What is THORChain?

THORChain is a Decentralized Liquidity Network. It facilitates cross-chain liquidity pools with no pegged or wrapped tokens.

What is THORSwap?

THORSwap is the world’s first Multichain DEX that utilizes the THORChain network to provide a front-end user interface to perform cross-chain swaps. This is done in a permissionless, trustless, and non-custodial manner. There are no pegged or wrapped assets, it is purely native.

For more information check out: https://thorswap.medium.com/thorswap-has-launched-is-this-the-death-of-cexs-cb6cf015b8f

The THORChain Difference

THORChain offers the following breakthroughs:

  • Complete transparency on the liquidity and logic of the entire network at all times.
  • Distribution of risk across the 99 THORNodes.
  • Permissionless access to global liquidity.
  • Manipulation-resistant price feeds.
  • Deterministic always-on liquidity for all assets.
  • Shared incentives for all participants.
  • Non-custodial staking of assets.
  • On-chain swaps with no pegged tokens.

Will there be system automated LP funds transfer from BEPSWAP to MCCN?

No. Users are expected to withdraw, swap to natives, enter MCCN LP manually. BEPSWAP will coexist for a while until all funds are withdrawn.

What is cheapest way to buy $RUNE prior to MCCN?

  1. Get BNB/BUSD from binance if you can’t buy $RUNE directly from Binance.
  2. Transfer BNB/BUSD in BEP2 format to TrustWallet
  3. Connect TrustWallet to chaosnet.bepswap.com
  4. Swap BNB/BUSD to $RUNE

Can I become a liquidity provider on THORSwap?

Yes, BUT currently LP’s are capped! You will have to wait for official announcements when caps are raised. Once they are raised you can then provide liquidity.

Announcements will be made on twitter.

Disclosure: If you provide liquidity when caps are FULL, then you will be refunded, however, you will be returned with less than you originally had in order to pay for the gas to refund you.

How do I use THORSwap?

https://thorswap.medium.com/how-to-use-thorswap-e13a2a4eafdd ^ Here is an article on how to:

  1. Create an Keystore wallet
  2. Migrate from BEPSwap to THORSwap
  3. Upgrade your BNB.RUNE and ETH.RUNE to native RUNE (THOR.RUNE)

What Wallets are compatible with THORSwap?

Keystore Wallet and xDEFI are fully compatible. TrustWallet and Ledger will be integrated soon!

Will there be system automated LP funds transfer from BEPSWAP to THORSwap?

No. Users are expected to withdraw, swap to natives, enter THORSwap LP manually. BEPSWAP will co-exist for a while until all funds are withdrawn.

Can I stake RUNE?

Technically yes, but by becoming a liquidity provider (LP) which earns APY.

What is “liquidity provider” aka LP?

Liquidity providers earn rewards in exchange for supplying their assets to the network. Their assets are added to pools which swappers use to exchange assets. The main benefit for Liquidity Provider is that they’re able to earn yields on stagnant assets like Bitcoin, Ethereum, Binance coin etc.

You will be providing liquidity at a 50:50 ratio. i.e 50% RUNE and 50% Asset.

Liquidity Providers are rewarded for keeping their assets in THORChain. APY comes from block rewards, incentives and the swap fees. LP’s get their rewards when they take their assets back out of THORChain.

Why does RUNE need to be the settlement asset in every pool?

If each pool is comprised of two assets eg. BTC:ETH then there will be a scaling problem with n*(n-1)/2 possible connections. By having RUNE one side of each pool, $RUNE becomes a settlement currency allowing swaps between any two other asset. Additionally, having $RUNE in a pool ensures that the network can become aware of the value of assets it is securing.

Why use 1-way state pegs instead of atomic swaps or 2-way asset pegs?

Simply put, Cross-chain bridges are a better solution than Atomic Swaps. Atomic Swaps involve a complex 6-8 process of signing cryptographic keys between two parties that require interactivity. You also need a counter-party on all trades. Cross-chain bridges, coupled with continuous liquidity pools means you don’t need a counter-party, and swaps can happen in less than a second. 1-way state pegs are better than 2-way asset pegs because assets don’t need to be wrapped or pegged. Instead of having IOU tokens, real assets can be used instead.

Is their Impermanent Loss Protection?

YES! Liquidity Providers will receive 100% IL protection for 100 days. Essentially this means you are adding 1% protection for every day that you provide liquidity. 49 days provided = 49% IL protection, 100 days = 100% IL protection.

Will there be a lockup period for LP’s?

There is no minimum or maximum time or amount. Join and leave whenever you wish.

Where can I learn more about providing liquidity (LP)?

Become a student at LP University! https://discord.com/invite/9TftHUuU3k

What is the monetary policy?

The goal is to have a fixed supply at all times. Instead of constantly emitting (infinite supply like Cosmos or Ethereum) or reducing the emission down to zero (Bitcoin) the team elect to match emissions to the difference between current circulating supply and the max supply, as well as burning fees. This means there is 500 million progressively emitted to nodes for security and liquidity over time.

Is the team profit oriented?

No - not profit orientated. All fees go back to users. There is no revenue model for the team via the protocol. All swap fees go to liquidity providers, all protocol fees are burned, emissions/block rewards go to validators. The team are incentivised through holding the same RUNE as everyone else. The team are providing a service, a service that contributes to the decentralisation of the whole crypto ecosystem. We are the first multi-chain DEX with native assets!

Why didn’t my swap/transaction go through?

Try not inputting a max amount (100%) to leave some funds for gas.

Why can’t I upgrade my BNB.RUNE or ETH.RUNE to THOR.RUNE.

You will need additional BNB or ETH in your wallet to cover the tx to upgrade.

How are fees calculated?

It is important to note the current congestion of said asset you want to swap, as gas fees on ETH and congestion on BTC will affect how much fees you will pay.

This will improve when depths of liquidity pools increase and a prediction of gas will also soon be implemented.

The other chain’s network fee is out of THORSwaps control and is due to efficiency of their native network.

i.e to swap Native BTC to Native ETH directly on THORSwap -> you would pay BTC network fee, ETH network fee, and RUNE network fee.

Compare it to a swap from Native BTC -> Wrapped BTC -> Wrapped ETH -> Native ETH. You would pay multiple transaction fees using ETH.

When you swap to an L1, you pay the outbound gas fee on that chain with a 3x premium.

We are updating the interface to: 1) Give you a quote with this fee added 2) Not let you swap an amount below this 3) Add more info about fees

In the future, you will be able to swap any small amounts -> BTC/BTC synth (for 10-20c), then redeem all at once in a large amount of BTC.BTC.

For more information: https://docs.thorchain.org/how-it-works/fees#fees and https://twitter.com/THORChain/status/1386128159649587201?s=20

Where does the 3x premium come from?

1x doesn’t work as the system would be at a loss, since it uses 1.5x the advised gas.

1.5x wouldn’t work because the system would barely break even.

So it charges 2x what the nodes use (1.5x) and pays the LPs back for ACTUAL gas.

The margin, 1.5x, is system income.

The fee structure has a fixed component and variable component on the tx size.

On those 3x of the gas outbound chain, there is half of that is going to the network and LPs as a “network fee” (1.5x) and the outbound transaction has the other half (1.5x) of that fee to use as gas on the chain, so its up to 1.5x the average current gas to make sure its a fast transaction.

What differentiates THORSwap from other interfaces?

TLDR: This is your ticket to ASGARD!

  1. All-in-one tools and features in one interface, you can stay in just one interface and never need to leave all the time

  2. Analytical Dashboard and Professional UI/UX

  3. Highly Scalable Infrastructure

  4. Security-First Implementation

  5. Extraordinary development speed

  6. High Quality and scalable codebase (maintain and integrate thorchain.js)

  7. Strong Community Engagement and Social Activity

  8. 100% Transparency through the medium blog post

  9. Support other ecosystems like LPU and Marketing Campaign

  10. 24/7 Technical Support through Discord

What assets can you swap and provide liquidity for?

Currently - BTC, ETH, LTC, BNB, BCH, ERC-20 (USDT and SUSHI), BEP2 (BUSD and BTCB)

Soon - XHV, BSC, DOGE, ZCASH, DOT, KSM, XMR, SOL, LUNA, ATOM, AKASH, SCRT, INJ, SIF, FIL and many more!

Will all ERC20 and BEP20 assets be supported and listed on THORChain by default?

No. Only short tail assets with high MarketCap, good velocity and economic activity would have chances to win liquidity competition to get listed.

Will there be a pool with stablecoin?

There will be a USDr pool, which will be connect with many different USD stablecoins, derisking them all and allowing traders to arbitrage the price to exactly $1. USDr will use collateralised debt positions in a novel way with the existing continuous liquidity pools so that it is liquid and safe.

Who are THORSwap?

THORSwap are the team that built BEPSwap and our vision is to become the #1 decentralized exchange in the world.