Review on THORChain by Gabriel Medina

Name: THORChain
Item: THORChain
Rating: 4

October 14, 2020

Protocol that provides liquidity

THORChain (RUNE) is a cryptocurrency network whose mission is to allow the exchange of assets through networks of disparate non-custodial blockchains. Use the Bifrost protocol to connect different chains. To facilitate the exchange of assets, it uses an adapted version of Bancor smart tokens called Continuous Liquidity Pools (CLP). These CLPs reward users for their contribution to the liquidity of each group. The native token of this platform is RUNE, we can use it to participate in the network or add a liquidity group.

THORChain uses a number of technologies to ensure that the network works and these are:

Tendermint: Architecture and consensus system used for the first time by the Cosmos network.
Continuous liquidity funds (CLP): This system encourages participants to provide liquidity in exchange for rewards and commissions in RUNE.
Bifrost protocol: Cross-chain can system.
Yggdrasil Protocol: Fragmentation mechanism designed to help scale.
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Pros

To solve the liquidity problems it has chosen to implement a Continous Liquidy Pools (CLP) model, to benefit traders and facilitate the exchange of assets.
Distribute rewards in the form of RUNE to any user who adds tokens to a liquidity pool.
Protocols that guarantee a good functioning of the network.

Cons