The price of the native asset for cross-chain decentralized exchange THORChain (RUNE) is up 34% in a day after the activation of synthetic assets on the network.
At the time of writing, the price had bounced back to a 21% gain in the past 24 hours to reach $5.27.
Crypto-synthetics or synths are tokens derived from other digital assets that are tied to the value of the underlying collateral, such as Bitcoin (BTC) or Ether (ETH). In the variant of THORChain, the project has chosen to support its synths with 50% of the underlying and 50% in RUNE. The activation went live earlier today and synthetics such as sBTC and sETH can now be traded on the network.
THORSwap Finance marked the benefits of the synthetic assets via a March 10 blog post, noting that “synths are of great benefit to traders and arbitrageurs as they can be traded almost instantly and at a fraction of the cost compared to native L1 swaps. ”
“Going forward, it will enable THORChads to also earn returns from Synths by providing vaults and other exciting THORFi utilities,” the post added.
The activation went live earlier today and synthetics such as sBTC and sETH can now be traded on the network. The price of RUNE has reacted positively, rising more than 20% to USD 5.27.
Earlier this week, the team highlighted its roadmap for the future, as it pledged to make “decentralized liquidity 10X” greater than centralized. After ticking off synths from the list, other key future landmarks include decentralized finance (DeFi) — in this case called THORFi — services like borrowing and saving.
Thorchain clocks $40 million in volume on synths launch day
A good start
— $RUNE Ranger (@TheRuneRanger) March 10, 2022
Another notable focus is the highly anticipated mainnet launch on THORChain, which is closer to completion but still doesn’t have a specific launch date. As Coin-Crypto previously reported, the recent surge in RUNE, which is also up more than 48.4% in the past 14 days, may also be related to the full integration of Terra (LUNA) into the THORChain protocol at the start of this year. month.
THORChain core developer Chad Barraford too emphasized the importance of freshly launched synths via Twitter earlier today, suggesting that trading volume on the network could rise soon:
“Trading synthetics on THORChain has half the swap cost, making swaps cheaper, cheaper gas costs and faster for traders. You can execute high volume trades almost instantly.”