Discover and read the best of Twitter Threads about #RAISETHECAPS
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Things you will need
-multichain wallet
-you DO NOT need rune (common misconception)
-any asset you want to lp thats on thorswap
-an open mind 😉
-multichain wallet
-you DO NOT need rune (common misconception)
-any asset you want to lp thats on thorswap
-an open mind 😉
$Rune is pumping but is this the top?
To understand why its pumping you need to understand the tokenomics 👇
To understand why its pumping you need to understand the tokenomics 👇
If you know @THORChain and the $rune deterministic value formula of 3$ increase to rune MC for every $1 deposited...your half way there
This is the bare bones minimum that rune HAS to trade at is the 3x multiplier.....It has NEVER TRADED at this its always been over
This is the bare bones minimum that rune HAS to trade at is the 3x multiplier.....It has NEVER TRADED at this its always been over
Can I get a.... "what the snap"
so why does $Rune HAVE to trade at a min of 3x.....
this is why
1. all LP's are paired 50% token A and 50% $rune
2. node operators must have 2x the value of the assets in the liquidity pools.
note:node operators only hold rune 😉
1+2=3
so why does $Rune HAVE to trade at a min of 3x.....
this is why
1. all LP's are paired 50% token A and 50% $rune
2. node operators must have 2x the value of the assets in the liquidity pools.
note:node operators only hold rune 😉
1+2=3
I didnt add an example to show the power of @THORSwap and the $rune asset and how the yields are dynamic to how the protocol functions. so here is some napkin math.....
2/ example:
lets say rune is 1$ and the MC is 1,000,000$ just for this example)
Now the yield for the $BTC pool is paying 20%.
lets say a user deposits $1,000,000 of btc......that would go to 10% because the TVL doubled. wouldnt it?
lets say rune is 1$ and the MC is 1,000,000$ just for this example)
Now the yield for the $BTC pool is paying 20%.
lets say a user deposits $1,000,000 of btc......that would go to 10% because the TVL doubled. wouldnt it?
3/ No, remember the formula every 1$ deposited=$3 on rune MC
so if this is the case then the rune price would go to $4 because the MC got juiced to 4,000,000$......
so since the Apy is based in rune the new apy instead of 20% would be 80% / 2 because higher TVL
so =40% APY
so if this is the case then the rune price would go to $4 because the MC got juiced to 4,000,000$......
so since the Apy is based in rune the new apy instead of 20% would be 80% / 2 because higher TVL
so =40% APY
Are these yields on @THORSwap sustainable?
2/ Well lets get into the data on how the yield is generated.
Just like all yield farms a certain number of tokens are allocated to a given pool regardless of price, so the more people that deposit they less tokens you get.... so the lower the apy? right?
Just like all yield farms a certain number of tokens are allocated to a given pool regardless of price, so the more people that deposit they less tokens you get.... so the lower the apy? right?
3/ yes and no
*remember apys are based in rune price
so 10$ rune price paying 10% apy
will pay around 20% apy if rune price goes to 20$
......wait why does the rune price have to go up???
*remember apys are based in rune price
so 10$ rune price paying 10% apy
will pay around 20% apy if rune price goes to 20$
......wait why does the rune price have to go up???
2/ Let me explain:
You have probably heard of this thing called $rune (if you haven't her chart is like shoes that fit on your feet)
translation: nuts and ham
2nd translation: GOOD like REALLY GOOD
You have probably heard of this thing called $rune (if you haven't her chart is like shoes that fit on your feet)
translation: nuts and ham
2nd translation: GOOD like REALLY GOOD
3/so with tranches say you want to invest 10,000$
what you would do is split it up 50/50 or 60/40 with the equal or lesser going to the more risky strat (in this case the lesser is 40 😉 )
just for example purposes we will do 50/50
so 5k thorswap
and 5k anchor
what you would do is split it up 50/50 or 60/40 with the equal or lesser going to the more risky strat (in this case the lesser is 40 😉 )
just for example purposes we will do 50/50
so 5k thorswap
and 5k anchor
1./ #RAISETHECAPS
#RAISETHECAPS is something we see coming by a lot in the @THORChain community. What are those caps? Why do we have these? Why should they be raised? And most important, what is the impact of it on $RUNE?
Let me explain 🧵
#RAISETHECAPS is something we see coming by a lot in the @THORChain community. What are those caps? Why do we have these? Why should they be raised? And most important, what is the impact of it on $RUNE?
Let me explain 🧵
2./ @THORChain is a cross-chain liquidity protocol where users can swap native assets against each other. Without wrapping or pegging assets.
To enable users to swap a certain asset, a liquidity pool of that specific asset needs to be available on #Thorchain.
To enable users to swap a certain asset, a liquidity pool of that specific asset needs to be available on #Thorchain.
3./ For example, if you want to swap native $ETH for native $BTC there are 2 liquidity pools needed. The first one is $ETH / $RUNE, the second one is $BTC / $RUNE. As you can see, both are paired against $RUNE. This is the case for every asset on @THORChain.
1/ A new class of users will emerge in the THORChain ecosystem. The network will have network products, and network users. And those new users will be massive. To see this development, let’s unroll the story of developers, node operator and LP depositors first.
2/ Developers are building towards Mainnet. The current beta version is Multi-chain Chaosnet. Expect chaos as it gets battle hardened. Bugs which couldn’t have been found in a testnet environment are showing up. They are getting fixed.
3/ I have talked with a number of new developers just joining the ecosystem who consistently praise the strength of the development effort, the quality of the code and responsiveness to issues as they arise.
1/ @THORChain $RUNE
-Thorchain aims to be the cross chain back-end for the entire crypto space
-Multi-Chain Chaosnet went live on Apr 13th and uncapped Mainnet coming soon
-Major wallets and exchanges already integrating Thorchain for cross-chain swaps
-ThorFi is coming...
-Thorchain aims to be the cross chain back-end for the entire crypto space
-Multi-Chain Chaosnet went live on Apr 13th and uncapped Mainnet coming soon
-Major wallets and exchanges already integrating Thorchain for cross-chain swaps
-ThorFi is coming...
2/ Here is a multi billion mcap protocol that many people (including myself until recently) have been sleeping on. But once you understand what Thorchain is doing and where it’s heading, it’s hard not to feel bullish. This is a top 10 project in the making.
So what is Thorchain?
So what is Thorchain?
3/ The simple explanation is that Thorchain is a cross chain asset exchange protocol. Call it a multi chain Uniswap, where you can swap between assets such as $BTC, $ETH, $BNB or $LTC natively in a fully decentralised manner and without the need for wrapped assets.
1/ Thorchain raised its cap on it’s Multi-Chain Chaosnet (MCCN) LPs from 750k to 1.5M RUNE. Within several hours, the LPs quickly hit the new cap.
2/ Here’s a before / after breakdown of the impact:
nonRUNE TVL: $112M, 128
deterministic value: $336M, 384
in-network RUNE: 32.1M, 33.0
market price: $16.70, 18.70
baseline: $10.47, 11.64
speculation: $6.23, 7.06
spec %: 37, 38
nonRUNE TVL: $112M, 128
deterministic value: $336M, 384
in-network RUNE: 32.1M, 33.0
market price: $16.70, 18.70
baseline: $10.47, 11.64
speculation: $6.23, 7.06
spec %: 37, 38
3/ Thornchain increased the LP cap by a trivial number of RUNE - 750k. The nonRUNE TVL increase by 14% almost immediately, and the baseline price (which is determined by the nonRUNE TVL) jumped 11%.
# The Second Dimension of @THORChain’s Liquidity Black Hole: THORSynths
How synths work, why they matter.
# TLDR how it works:
Deposit $RUNE to mint a #THORSynth, like thorBTC. Pool thorBTC with RUNE and get access to LP rewards from fast&low cost synth swaps.
How synths work, why they matter.
# TLDR how it works:
Deposit $RUNE to mint a #THORSynth, like thorBTC. Pool thorBTC with RUNE and get access to LP rewards from fast&low cost synth swaps.
# TLDR implications:
- captures unused RUNE and filters value back to deterministic price
- becomes a potent DeFi platform in itself
- augments liquidity virtually, and more
Full detail below 👇
- captures unused RUNE and filters value back to deterministic price
- becomes a potent DeFi platform in itself
- augments liquidity virtually, and more
Full detail below 👇
# Minting & Redeeming
Synths are created by depositing $RUNE. No external asset like BTC is deposited to mint synths.
This is exciting for early chads who've grown into $RUNE heavyweights.
Synths are created by depositing $RUNE. No external asset like BTC is deposited to mint synths.
This is exciting for early chads who've grown into $RUNE heavyweights.
1/ Volumes on global derivative markets are some large multiple of global spot markets - maybe 20X by my SWAG reckoning. Crypto futures are wildly successful products. The options side is developing. Also, there is the whole push to DeFi.
So what about Derivative DeFi?
So what about Derivative DeFi?
2/ Sounds like a reasonable investment thesis. I have bought several projects in this space and see them working hard to develop out product offerings that attract volume as scale.
3/ In the real world, derivative market places can be siloed because customers guarantee margin obligations and the brokers underwrite the customers. The promise of cash to settle up margin is sufficient.
