Posts

Thorchain weekly update - Episode 2

avatar of @jk6276
25
JK
@jk6276
·
·
0 views
·
5 min read

Welcome to this weeks highlights as I see them from the world of Thorchain. If you missed it, Episode 1 covered the closure of Runevault, The BTC testnet, Erik Voorhees, and the prospect of a RUNE ERC20 token. Lets dive in to this weeks news.

Price of RUNE.

Happy to report this week that the "numbers go up". In fact, it has been a fantastic week for RUNE, with the last seven days starting at around 35c, and currently sitting at around 60c.

Source: [Crypto.com](https://crypto.com/price/thorchain)

Now, I'm no charting expert, but that looks like an uptrend this week. 60c seems to be and important level at the moment, and it will be interesting to see if it holds around here, keeps pushing higher, or retraces offering another cheap entry. I can say that many in the Thorchain community are extremely bullish, to the point that actual liquidity added to the LP's has decreased by roughly 3 million RUNE, as many LP's remove their stake to try and avoid Impermanent Loss. This has had the effect of shifting the incentive pendulum in favour of the remaining LP's, which suits me just fine.

The Thochain Bot on twitter shows the effect of this swing in the pendulum, with the following stats:

The Nodes are getting bigger.

Despite the pendulum swinging in favor of LP's, nodes continue to steadily increase the amount Bonded in the network. Bonds act as security, and underwrite the assets in pools. Nodes churn regularly, to keep the network fresh, and up to date, and standby nodes compete to become active. As I write this, the first node with over 1 million RUNE bonded is waiting to churn in. That's RUNE worth $600,000 bonded to secure that nodes place in the system. Being a node is a lucrative venture, and with the network growing, the time is approaching where the teams target of nodes having 1 million RUNE each bonded is approaching.

More interest from Erik Voorhees.

Yesterday, I made a post about Erik Voorhees being a high profile fan of the project. Since then, he has been in the Telegram group, and even jumped in to answer a question from a newcomer:

Now as @khaleelkazi said in a tweet, Erik knows a thing or two about swaps, and seeing his continued activity in and around the community is making me feel more and more that perhaps the suggestion I made in last weeks post is true, that he is looking to add Thorchain liquidity to his Shapeshift service.

Bugs caused small delay for Multi Chain testnet. (MCTN)

During the last week, the chain experienced some issues related to a node that was trying to run as a "bare metal" node. This means they were building their node on their own infrastructure, rather than using a cloud service like AWS (where most nodes are running) Some issues and problems with the setup cause bugs to be found, and delayed slightly the MCTN. The team reached out to the node operator, and assisted with the fix so that funds were recovered from that node and network churning could resume. Bug fixes and code updates have since been rolled out based on this experience to prevent future issues. This is another example of the reason "Choasnet" has been set up in this way, and also a reminder that risks do exist still for node operators and LP's, but also a justification for the measured way the team is scaling up the project.

MCTN is imminent:

MCTN will open for public testing any day now. Here is an example of a RUNE - BTC swap transaction, Source Thorchain Telegram: https://t.me/thorchain_org/154335

LP incentive in the RUNE/BTCB pool.

With the closure of Runevault, the team are planning to add direct incentives for LP's to add to pools. This week they have chosen the BTCB pool to incentivise. On top of the normal fee income, and RUNE block rewards entering the pool, they are also adding 100K RUNE directly, in effect gifting the LP's in this pool. 25K has already been added, and another 75K will find its way into the pool this week. This will further boost the APR experienced on this pool. Obviously the teams short term focus is on the native BTC integration, and many RUNE holders are hesitant to trust the Binance chain wrapped version (BTCB), preferring to wait till native BTC is on line. This incentive may shift a few to add in now, and may cover the Impermanent Loss some LP's are experiencing.

How's my personal stake going?

So, now for the fun part. The price increase in RUNE has certainly made this weeks figures nice to look at. I'm in two pools, with RUNE/BTCB being the majority of my funds, and RUNE/ETHBEP2 being the remainder.

My current overall stake

Breakdown of performance on each pool.

Note that despite the big jump in RUNE price this week, I am still comfortably ahead on the LP vs HODL comparison. That means that the dreaded Impermanent Loss everyone is afraid of is being outweighed by the fee income and block rewards being earned.

Total currently of + 23.61% in USD terms over the last two weeks - winning.

So there you have it, just a few highlights from a very busy week for the thorchain community.

If you don't know what Thorchain is, here are a few links for your research:

Thorchain weekly update - Episode 1

If you are a member of the Thorchain community reading this, and would like to join in the conversation, or find a home for your own Thorchain or crypto relaed content, joining LeoFinance is as simple as creating an account via metamask. Visit https://leofinance.io/ , click on get started, and in seconds you can create a free account and get started.

Posted Using LeoFinance Beta