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Becoming a Thorchain First Class Citizen

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@mistakili
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I finally became a first class citizen on Thorchain today by pooling my Rune. The caps were raised in the early hours of the morning and within 4 hours, around 1.5M worth of Rune liquidity had been provided (which was around $20M at the time) and the system was capped again.

I was asleep the last time caps were raised so I missed it as the threshold was reached in minutes.

So I pooled asymmetrically, meaning, unlike the usual 50:50 basis on most other popular DeFi platforms, on Thorchain, people are allowed to provide liquidity symmetrically and asymmetrically, which means one can supply 1 side of the liquidity in case they don’t want to sell half their Asset to make up for the other side of the pairing as depicted below.

So you can supply only BTC, only Rune or both. I supplied only Rune cuz it’s what I had and I wasn’t going to sell half of it to make up the other pair. I’m farming in the BTC pool, I’m betting that BTC will out perform Rune in the long run, this way, I’ll earn more Rune when the price of BTC goes up.

At the time I initiated the operation, BTC was about 54k, now BTC is $57k at the moment of writing this post, meaning if my calculations are right, I should be in the green alongside everyone who is farming in the BTC pool with Rune or BTC.

According to the image above, the BTC pool is the deepest, has most LP’s, 2nd highest volume, and high APY followed by the BNb pool.

The success of my bet is hedged on Bitcoins upward price movement in the next 100days. 100days because if I incurred impermanent loss during that time, the system is programmed to refund me as long as I pool for at least 100days which I plan to do.

I was reluctant in providing liquidity with my Rune’s at first because sometimes, holding might just be the better option (which I hope won’t be in this case)...whelps, I had to make up my mind in time before the system got capped again, in a couple of months we will see how this goes, however it goes, we live and learn....

If you want to learn more about Thorchain through the Thorchain LP universities YouTube videos, the link is right below the image.

https://www.youtube.com/channel/UC1DISL3mSTrasRHN_IzIGZg

Check out my other posts about Thorchain, how I began my whole journey of discovering the system and why I remain so stoked about the project.

Thanks for reading 🙏..

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