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 was conceptualized in 2018 by a team participating in a Binance Dexathon (decentralized exchange coding competition). 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.

THORChain is a layer-1 network based on the Cosmos SDK and Tendermint. THORChain works as a cross-chain permissionless Decentralized Exchange (DEX). It also uses Threshold Signature Schemes (TSS) to secure its leaderless asset vault. Tendermint and TSS provide a layered Byzantine Fault Tolerance (BFT) consensus mechanism, and a two-thirds majority consensus is required for funds to enter and exit the primary TSS vault. There are four key types of users in the THORChain ecosystem:

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

Q. Take a deep dive on one of the projects integrating with THORChain and the fees they are charging.

What fee are they charging? Does it depend on the action the user is taking at all? How has it changed over time? How much revenue have they derived from this affiliate program.

Here are some docs on the affiliate program to get you started: https://medium.com/thorchain/affiliate-fees-on-thorchain-17cbc176a11b

Here are a few known affiliate addresses. Brownie points to whoever does one outside of these 3 (may have to do some pro sleuthing)

thor1a427q3v96psuj4fnughdw8glt5r7j38lj7rkp8: THORWallet

thor1zw97zhhgwy3u99rxpn7cyelj44y733ntgg30e8: Defispot

thor160yye65pf9rzwrgqmtgav69n6zlsyfpgm9a7xk: THORSwap

NOTE: ignore all refund transactions (any tx ids from thorchain.refund_events)"

In the above diagram, we see the affiliate fees addresses of thorchain. The most transactions are related to [thor160…a7xk] address with 8123 transactions. After that, there is [thor1a4…rkp8] address with 2448 transactions. [thor19p…j7dd] address is in third place with 361 transactions. [thor1zw…30e8] address is also in the fourth place with 261 transactions.

In the above chart, we see total number of transactions of affiliate fees addresses in thorchain as a percentage.

70.2% of fee transactions are related to [thor160…a7xk] address.

21.2% of fee transactions are related to [thor1a4…rkp8] address

3.12% of fee transactions are related to [thor19p…j7dd] address

2.26% of fee transactions are related to [thor1zw…30e8] address

In the above charts, we can see the amount of fee received for swaps on a daily and weekly basis.

On December 27, 2021, for 211 swaps performed, THORWallet address has earned $22.8K. and the [thor1za…4ga3] fee address also hasearned 30.4 thousand dollars. On January 12, 2022, for 67 swaps done, THORWallet address has earned $12.4K. and the [thor1za…4ga3] fee address has earned 11 thousand dollars.

The highest earning of the affiliate fees addresses are for April 2022. On April 26, for 1728 swaps, THORSwap address has earned $38,000. The [thor1za…4ga3] address has earned $41 and the THORWallet earned $482.

In the above chart, we see the monthly revenue of the affiliate fees addresses from the swaps. In May, the total number of swaps was 26.7 thousand swaps. In May, the THORSwap address has received $347.6 thousand. After that, THORWallet has received an amount of $30.4 thousand. Defispot address has also received 6.4 thousand dollars.

In the above chart, we can see the monthly revenue percentage of the addresses from the swaps.

74.3% of affiliate fees revenue is related to THORSwap

18.9% of affiliate fees revenue is related to THORWallet

1.8% of affiliate fees revenue is related to Defispot

1.51% of affiliate fees revenue is related to [thor1za…4ga3]

1.46% of affiliate fees revenue is related to [thor1e9…hum2]

In the above chart, we see the total fee received by the addresses.

THORSwap has received $609.8k as affiliate fee.

THORWallet has received $186.9k as affiliate fee.

Defispot has received $15.6k as affiliate fee. [thor1za…4ga3] has received $12.3k as affiliate fee. [thor1e9…hum2] has received $11.9k as affiliate fee. [thor19p…j7dd] has received $11.8k as affiliate fee.

In the above chart, we see the total percentage of fees received by the addresses.

71.4% of affiliate fees revenue is related to THORSwap

21.9% of affiliate fees revenue is related to THORWallet

1.83% of affiliate fees revenue is related to Defispot

1.45% of affiliate fees revenue is related to [thor1za…4ga3]

1.4% of affiliate fees revenue is related to [thor1e9…hum2]

in the chart, we can see daily total revenue from affiliate fee payment transactions over time for adding liquidity actions.

As we see, the highest huge spike in this revenue has been achieved on 27th December 2021 which is weird and is more than $6735.

before this date, we can barely see bars for affiliate fee revenue on the chart.

After that, we can almost see a constant amount of revenue from affiliate fees for THORWallet over time. Moreover, we can see some sudden high spikes during March and April and early-May 2022.

in this chart, we see cumulative revenue from affiliate fees for Liquidty actions on THORWallet over time.

As we see, the huge impact of that very high spike on 27th December 2021 is clearly visible on this chart.

More over, we can see the impact of those high spikes during March and April 2022 as some steps on this cumulative chart.

After May month, we can see a very light growth rate for the revenue from Affiliate fees for THORChain and the speed of this revenue is getting decreased over time.

in this dashboard we use THORChain database tables available on flipside fo answering the following questions:

• Affiliate Fee Address - Total Transactions
• Affiliate Fee Address - Total Transactions - Percentage
• Total Number of Swaps With Affiliate Fees
• Total earning of Swap Affiliate Fees [USD]
• Daily Swaps Affiliate Fees earning
• Weekly Swaps Affiliate Fees earning
• Monthly Swaps Affiliate Fees earning
• Monthly Swaps Affiliate Fees earning [Percentage]
• Affiliate Address Revenue from Affiliate Fees
• Affiliate Address Revenue from Affiliate Fees [Percentage]
• Total Number of Liquidity Actions by Affiliate Fee
• Total earning From Liquidity Actions-Affiliate Fee
• Daily earning From Liquidity Actions-Affiliate Fees overtime
• Cumulative Affiliate Fees earning From Liquidity Actions overtime
• Top 10 Users Wallets With Most Fees Paid

in this chart, we can see total revenue from affiliate fees for liquidity actions on THORWallet for each pool.

As we see, BNB.BUSD pool has generated the highest amount of Affiliate fee for THORWallet liquidity actions with more than $7834 (almost 60% of total revenue)

in this chart, we can see Top 10 wallets which have generated the highest amount of Affiliate fee for THORWallet by performing swap transactions.

As we see, bnb1p4yhvl4mayylqrw4kh9re6m8t7364rsfsd00zj has by far the highest share of generated revenue for THORWallet.

Moreover, we can see most of these wallet addresses BNB wallets.

Definition

Affiliate Fees

Affiliate Fees are the solution to this, and THORChain’s solution is non-custodial, decentralised and transparent. A wallet developer simply adds their affiliate address, as well as fee rate, to the transaction before the user signs it. The user can review it, as well as see the fee rate to be taken. When THORChain sees the transaction it will skim off the fee and pay it directly to the affiliate immediately.