Thorchain update - the current state of play for multichain, and other news

1 month ago
4 Min Read
768 Words

In this post I will look at recent updates and news regarding where Thorchain is up to on launching Live Multichain chaosnet, look at a report from a Swiss bank on Thorchain, and other developments and community updates on their way.

The last phase of testing before live multichain swaps and LP's is currently underway on Thorchain's latest test-net. This test-net covers three chains, with BTC, BNB, and the Thorchain itself running native RUNE.

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Source: Tweet from Thorchain Dec 5

The shift to native RUNE has been linked in with the multi-chain launch, and bedding down the move to having RUNE as a native asset on Thorchain (as opposed to being a Binance chain BEP-2 token currently) has taken some time. However things seem to be tracking well, and testing is up and running as I understand it.

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Recent article about Thorchain.

A few days ago, a research report about Thorchain was released by SebaBank. SebaBank is a Swiss Bank, that describes itself as...

... redefining finance for the new economy by building a pioneering technological bridge between the digital and traditional asset worlds.

In it's report, it looks at the basic design and structure of the Thorchain protocol, the competitive environment it operates in, and any threats to Thorchain's growth. They come to the following conclusion:

Considering that base-case, bullish, and bearish scenarios are equally likely, we arrive at RUNE’s expected fair value of USD 4.1

The Base case valuation of RUNE is $3.40, the Bullish case is $7.63 and the conservative value is $1.26, according to their methodology.

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Other chains looking to link to Thorchain.

Active development of links from other chains to the Thorchain network is progressing, with a growing list of chains working on joining. In most cases, these chains are developing to links themselves. The core Thorchain team are building the BTC, and subsequently the Ethereum links. Other chains are working on their own accord as the decentralized nature encourages community dev's to get involved.

According to Thorchain, the following chains are being actively worked on by community members to link to Thorchain:

  • Cosmos (ATOM)
  • Polkadot
  • Zilliqa
  • Monero/Haven
  • BitcoinCash
  • Solana

Bitcoin is complete, team will next focus on Ethereum.

THORChain quickly becoming the go-to for cross-chain liquidity.

Source for these quotes is this tweet

Something to note here is that a number of people in the twitter thread asked why BitcoinCash was in the mix - unsure what it would bring to the table. An interesting answer from A Thorchain community member Bitcoin Sage is particularly illuminating and goes to highlight the opportunities ahead of Thorchain:

It's got a $5.8B market cap. If only 0.1% of that would migrate to Thorchain it would mean $58M extra locked.
Increasing $RUNE's market cap by 3*58=$174M.
Still don't think it's worth it?

As a point of reference, RUNE's current market cap is $215M (at its current price around $1). If just 0.1% of BCH finds its way onto Thorchain, $0.80 gets added to the price of RUNE. Thats just one of a number of chains in the pipeline.

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Also looking at synthetics.

The other little tease that came out during the week revolved around Synthetics or pegged assets on Thorchain. You can see the Gitlab merge request. I personally don't really understand how this work yet, will have to read and try to absorb this in time. The best commentary on this I have found is this twitter thread by Thorchain community member Acrobatica

With a strong peg proposed by THORChain, it will be conceivable to create:

  • Stable coin – a crypto asset with pegged market value to some external reference (USD, EURO, gold)
  • Baskets and indexes – a portfolio of selected stable coins
  • Crypto ETFs – tracking the behaviour of participating crypto assets
  • Derivatives
  • Borrowing
  • Low cost swaps = HFT

The source of these quotes is the thread linked above. I don't get it yet, but it sounds exciting.

Bring on Multi-chain.

Thanks for reading, for more great Thorchain content, check the following links:

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