Introduction

Thorchain

THORChain is a decentralized liquidity protocol that allows users to swap assets in a permissionless setting. It enables the exchange of native layer-1 assets like BTC by acting as a vault manager. To secure its network, THORChain uses Tendermint and Cosmos-SDK. It also utilizes Threshold Signature Schemes (TSS) for its leaderless primary vault. THORChain facilitates cross-chain liquidity and reduce the need for centralized exchanges and third parties within the DeFi space. It enables cross-chain swaps and yield generation on crypto-assets like Bitcoin and Ethereum.

types of users in the THORChain ecosystem

There are four key : 

1. Swappers who use liquidity pools to swap assets.
2. Liquidity providers who add liquidity to pools and earn rewards.
3. Node operators who provide bonds and are paid to secure the system.
4. Traders who monitor and rebalance pools with the intention of making profits.

Unlike other cross-chain protocols, THORChain doesn’t wrap assets before swapping. Instead, it uses native assets on THORChain to perform autonomous, transparent asset swaps.

Asset swaps are enabled by liquidity pools. These pools are made up of assets contributed by Liquidity Providers and are secured by a network of node operators. Liquidity providers deposit their assets in THORChain’s liquidity pools to earn yield, made of swap fees and system rewards. Anyone can add liquidity to an existing pool, making THORChain permissionless. In addition, THORChain is non-custodial because only the original depositor can withdraw the assets that they have deposited in the pool. Liquidity providers can also propose new asset pools, provided these assets are tokens of a supported chain in the ecosystem. 

Node operators, called THORNodes, are independent and communicate with each other to form a cross-chain swapping network. In exchange for securing the network, they will receive rewards in the form of fees for every swap made. Before becoming a node operator, a user has to provide a bond of RUNE. These bonds are held as collateral to ensure that node operators behave in the best interest of THORChain. The total bonded needs to be twice as big as the RUNE pooled.

Node operators

Earn rewards when they secure the network.

Encouraged to remain anonymous to increase decentralization.

Not required to be registered.

RUNE for incentives

Block rewards and swap fees are paid to liquidity providers and node operators in RUNE on a set emission schedule. RUNE can also be used to pay for gas fees.

The smallest denomination of RUNE, called a Tor, is eight decimal points. RUNE aims to move towards a predictable deterministic value. By design, RUNE’s market cap should be minimally three times the total value of non-RUNE assets in the ecosystem’s liquidity pools.

Methodology

In this dashboard, we want to check the exchange fees and also see the block reward in Thorchain .

The data for this dashboard will come from the flipside_prod_db.thorchain.Swaps and the

Tables used to retrieve the required information:

> # flipside_prod_db.thorchain.block_rewards

> # flipside_prod_db.thorchain.Swap

We can also increase the amount of exchange volume of Thorchain to compensate for the release of the block

Seactions

1. Swap volume
2. Swap volume vs. Block rewards

Swap volume

Observation

• Approximately more than 12 billion dollars of swaps generated from 18 million swap fees

• The volume of transactions in the last weeks of May is almost $200 million.

• The swap fee was between 75K and 175K in the THORchain in May of this year.

• top 10 THORChain Weekly Fee in Usd

• Top 10 Weekly THORChain Swap Volume Usd

• Top 10 Fee Weekly Volume Times Multiplier

• Top 10 Swap Weekly Volume Times Multiplier

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Swap volume vs. Block rewards

Observations

• In total, the blocked reward is more than 66 million
• The current block reward is almost three times the exchange fee
• By looking at the chart above, the available block reward is between 1 and 1.5 in a week of May
• top 10 fees swap
• top 10 Earning Reward Rune

Conclusion

• Swap volume
  • Approximately more than 12 billion dollars of swaps generated from 18 million swap fees
  • The volume of transactions in the last weeks of May is almost $200 million.
  • The swap fee was between 75K and 175K in the THORchain in May of this year.
  • top 10 THORChain Weekly Fee in Usd
  • Top 10 Weekly THORChain Swap Volume Usd
  • Top 10 Fee Weekly Volume Times Multiplier
  • Top 10 Swap Weekly Volume Times Multiplier
• Swap volume vs. Block rewards
  • In total, the blocked reward is more than 66 million
  • The current block reward is almost three times the exchange fee
  • By looking at the chart above, the available block reward is between 1 and 1.5 in a week of May
  • top 10 fees swap
  • top 10 Earning Reward Rune