The Birth and Vision of THORChain

Since 2018, the concept of THORChain emerged from a visionary team participating in the LBankDexathon competition. They envisaged a decentralized financial landscape where asset liquidity would no longer be confined to individual blockchain networks but could freely traverse major cryptocurrency ecosystems like Bitcoin and Ethereum. THORChain's core objective is to create a cross-chain liquidity solution that eliminates reliance on centralized trading platforms or third-party intermediaries, thus opening up new possibilities for the DeFi space. It enables direct cross-chain swaps and fosters growth in various crypto assets for its participants.

The Unique Advantages and Innovative Features of THORChain

THORChain stands out among cross-chain solutions with its distinctive ability to facilitate native asset swaps across Layer 1 networks without asset wrapping. This characteristic simplifies trading processes, empowering users with a direct, transparent, and trustless price discovery mechanism. Here are the key advantages of THORChain:

1. Seamless Cross-Chain Trading: Users can directly exchange native assets between multiple blockchain networks, such as BTC, ETH, LBK, and LUNA.

2. Permissionless Participation: Anyone can engage in trading on THORChain without registration or cumbersome procedures; simply send transactions to the THORChain network for execution.

3. Liquidity as a Service: THORChain ensures users have access to liquidity whenever needed, allowing idle assets (like BTC and ETH) to be instantly converted into earnings.

4. Impermanent Loss Protection: Participants in THORChain's liquidity pools receive up to 100% IL protection under specific conditions (e.g., if deposited for over 100 days), mitigating risks.

5. Freedom to Enter and Exit: There are no lock-in periods for funds in THORChain pools, enabling users to withdraw their assets at any time as per necessity.

6. Incentivized Security Maintenance: Node operators stake RUNE as collateral to secure the network and earn transaction fee rewards, fostering anonymity and decentralization principles.

RUNE: The Cornerstone and Multifaceted Token of the THORChain Ecosystem

RUNE serves as the pivotal native token at the heart of the THORChain project, playing a crucial role both technically and in terms of economic incentives and governance mechanisms. Here are the four main functions of RUNE:

1. Settlement Asset: Acting as a bridge currency across all liquidity pools, RUNE facilitates seamless and efficient inter-chain swaps for any asset entering THORChain. To participate in cross-chain exchanges, assets must form equivalent value pairs with RUNE in liquidity pools (e.g., each BTC pool requires an equal value of RUNE). This design ensures smooth interoperability between different blockchain assets.

2. Network Security: To ensure the security and stability of the network, node operators need to stake twice the value of non-RUNE assets they add to liquidity pools as collateral. This binding mechanism disciplines node behavior and provides a safety net for the network.

3. Community Governance and Priority Setting: RUNE holders can influence the direction of the THORChain ecosystem by voting on proposals through providing liquidity to specific pools. Pools with the most RUNE investment receive higher priority, enabling the community to actively decide which assets or chains get more development resources within THORChain.

4. Incentives and Fee Payments: RUNE rewards liquidity providers and participants operating nodes, who earn from block rewards and transaction fees generated during swapping. Furthermore, RUNE is used to pay operational fees, referred to as "gas fees," within the network.

Notably, RUNE's design is highly refined, with its smallest unit, the Tor, divisible up to eight decimal places for precision. It aims to maintain stable and predictable market capitalization. According to THORChain's economic model, the market cap of RUNE is targeted to be at least three times the total value of non-RUNE assets it supports, solidifying its central position in the cross-chain ecosystem.

Simple Steps to Buy RUNE on LBank

To purchase RUNE on a crypto exchange like LBank, follow this straightforward procedure:

1. Log in and access trading: First, ensure you're registered and logged into your personal LBank account. Click the 'Trade' option at the top of the page to enter the trading interface.

2. Search for and select the RUNE trading pair: In the search bar located on the right side of the screen or within the trading area, type "RUNE". The system will display all trading pairs related to RUNE. For instance, RUNE/USDT indicates that you'll be buying RUNE using USDT.

3. Spot Trading Process: In the 'Spot' trading section, locate the RUNE/USDT pair. Here, input the quantity of RUNE you plan to buy. For beginners or those seeking quick execution, it's recommended to use a market order, which means your order will be executed at the current market price.

4. Confirm and buy RUNE: After entering the desired amount of RUNE and choosing a market order, click the 'Buy RUNE' button to submit your order. Once the trade is successful, the purchased RUNE will instantly be credited to your LBank spot wallet, ready for viewing, management, and further transactions.

With these steps, you can easily purchase RUNE on LBank and add it to your investment portfolio. Always stay informed about market movements, make cautious decisions, and manage risks wisely.

Conclusion

Since its inception, THORChain has disrupted the decentralized finance (DeFi) landscape with its groundbreaking cross-chain liquidity solution. The team has achieved seamless interaction between major crypto ecosystems like Bitcoin and Ethereum by creating a trustless Layer 1 native asset swapping network, eliminating the need for third-party intermediaries. Notably, it has made significant strides in mitigating impermanent loss and enabling free entry and exit from liquidity pools.

RUNE, as the bedrock and multifaceted token of the system, plays a crucial role in settlement, security, community governance, and incentive structures. Looking ahead, THORChain is poised to push the boundaries of innovation within DeFi. As its technology matures and its applications broaden, it aspires to provide global users with an even more convenient, efficient, and secure experience for asset management and exchange.