What is THORCHAIN ?

Overview

THORChain is an independent blockchain built using the

Cosmos SDK that will serve as a cross-chain decentralized
exchange (dex)

It uses an automated market maker (AMM) model that

resembles the first iterations of Bancor (BNT) or Uniswap
where THORChain’s native token (RUNE) is the base swap pair.

This model allows traders to move between different asset

pools using RUNE as a somewhat hidden intermediary.

It also rewards liquidity providers (LPs), those that deposit

or “stake” assets on either side of a liquidity pool, with a
portion of trading fees.

It uses an AMM model to facilitate cryptoasset swaps an

independent crytonetwork that aims to enable the exchange
of assets across disparate blockchain in a non-custodial
manner.

Its protocol features a cross-chain features a cross-chain

bridge system (knows as the Bifrost Protocol) to connect
different chains.

THORChain also uses an adapted version of Bancor’s “smart

tokens”, which it calls Continuous Liquidity Pools (CLPs), to
facilitate the exchange of assets.

The key difference is that CLPs reward users for

contributing to the liquidity in each pool.
THORChain features a native token, RUNE, that owners can
use to participate in the network or add to a liquidity pool.