THORChain Activates Feature, 30% Peak Follows, Can Bulls Hold Up?

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Up nearly 30% during today’s trading session, decentralized cross-chain exchange THORChain (RUNE) is trading north of USD 5.28. As one of the biggest winners of the current market relief, the network has activated synthetic assets, a new feature that could attract use cases and users to the platform.

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RUNE is moving sideways on the 4-hour chart. Source: RUNEUSDT Tradingview

per official after, synthetic asset tokens are linked to the value of their underlying collateral, such as Bitcoin or Ethereum. In other words, users can now access BTC, ETH and others running on THORChain.

Similar to Wrapped Bitcoin (wBTC), a popular token on Ethereum, with the difference that synthetic assets in this case can also be collateralized by BTC and other cryptocurrencies. The synthetic version of Bitcoin running on this blockchain is called sBTC and it provides the user with exposure to BTC’s price performance.

Unlike Bitcoin, the synthetic version on THORChain offers faster transactions and lower fees, according to the post. That way, a user can trade with this advantage and take advantage of other revenue generation products. According to the message:

As an advantage, you have access to vaults that generate returns and be one of the first users to finally allocate their money. Mining of synths is restricted and access depends on how much liquidity there is in the THORChain pools.

The post adds that users can simplify their trading experience and access different cryptocurrencies from multiple blockchains without using a centralized exchange. Core developer Chad Barraford said the following about the benefits of this feature and its impact on the network ecosystem:

Synthetics can be used to change the depth of the pool and therefore correct the price of the pool to meet the market demand i.e. arbitrage. This is super important because it means the pools can get faster, cheaper and more efficient.

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In addition, synthetic assets will give THORChain users the opportunity to earn as much as 20% interest on their assets. For that, users have to lock their assets in a vault called THORSaving, which has an initial 5% APY.

One of the most hyped products in the lending and borrowing use case. Users will be able to access “self-paying loans” that generate returns on collateral. As the post clarified:

You take the loan that is automatically paid by the interest the vaults generate from the locked plastics.

Barraford predicts a potential increase in trading volume for RUNE and the THORChain ecosystem in general. The project has recently been integrated with Terra (LUNA) and will start acquiring the native token of this network along with the native stablecoin UST.

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Ultimately, the decentralized exchange wants to increase its liquidity tenfold. To achieve this goal, THORChain published a roadmap that included the integration of DEX aggregators, more features, wallets, and access to other blockchains.

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