THORChain is a decentralized cross-chain mobility protocol based on Tendermint and COSs-SDK and utilizes threshold Signature scheme (TSS). There is no solution using hooks or wrapping assets, just determining how to move them in response to user actions.

The primary goal of THORChain is to resist centralization and reduce value capture by intermediaries, while promoting cross-chain mobility. THORChain only protects the assets in its vaults and guarantees that these assets are safe.

Cross-chain asset trading platform, unlinked, packaged asset solutions.

THORChain watches deposits, performs business logic (swap, add/remove liquidity), and processes outbound transactions. THORChain is primarily a leaderless vault manager that ensures that every stage of the process is Byzantine fault tolerant.

THORChain is a liquidity protocol based on Tendermint& Cosmic-SDK. It uses Threshold Signature Schemes to create a cross-chain transaction market without permission and without trust. THORChain's liquidity is also provided by liquidity providers, who can earn transaction fees and token incentives. There are four roles on THORChain: liquidity provider, convertor, arbitrageur and node operator. Node operators are responsible for keeping the network running and secure and are rewarded with RUNE tokens, but are also required to post a margin to prevent wrongdoing. At the technical level, there are three aspects that support the operation of THORChain: one-way state peGS, state Machine and threshold signature Protocol. It combines these three technologies, along with the incentive mechanism of RUNE tokens, to form THORChain's decentralized cross-chain exchange mechanism. One-way state anchoring Cross-chain state anchoring connects other main chains to THORChain. This mechanism does not lock assets, but only anchors the chain state, also known as one-way state anchoring. Each connected chain has a "Bifrost" module that handles details connected to that chain, such as chain configuration and transaction details. Once the synchronization is complete, the nodes monitor each vault address on the chain and if they see an incoming transaction associated with the monitored Vault address, they convert it to a witness transaction for THORChain. THORChain processes each observed transaction and collects signers. Once a majority of nodes agree to a particular transaction, it transitions from the wait state to the final state. Exchangers can trade as long as they have a corresponding liquidity pool. The assets in the liquidity pool consist of RUNE and other chain assets. Each asset in the pool has RUNE, which connects all the assets in the pool in a single continuous liquidity network to form a continuous liquidity pool. When a user exchanges two linked chain assets on THORChain, it does so in two pools, first exchanging the chain asset for RUNE in the first pool, then transferring the RUNE to the second pool, where the RUNE is converted into the target asset. THORChain's state machine The state machine handles completed transactions and execution logic, such as ordering transactions, calculating state changes, and delegating them to a specific outflow repository (Vault). Finally, txOUT entries are created and stored in key-vaule storage. Threshold signature Mechanism (TSS) The core reason for THORChain to adopt the threshold signature mechanism is security. The primary consideration of assets in the transfer chain is safety. With TSS, THORChain can provide a higher level of security and reduce risks when generating new addresses and signed transactions. After the final transaction is created, the signer downloads the transaction from the local copy and serializes it to the correct transaction for the target chain using the client of the respective chain. It is then sent to the TSS module that coordinates the key signature. The final signed transaction is broadcast to the respective chain.

Some uses of RUNE include: 1. Validators must mortgage RUNE to become part of the validator set, which has a lockup period to prevent disinterested attacks 2. All network transaction fees (distributed ledger for protocol changes) are paid with RUNE. Networks may need to charge fees for performing transactions, transactions, and cross-chain exchanges. 3. Collateral RUNE in a continuous liquidity pool (CLP) to earn liquidity fees 4. Block rewards for validation nodes are paid in RUNE

THORChain is a leaderless vault manager: 1.1-way State Pegs allow State synchronization from external chains; 2. State machine for coordinating asset exchange logic and entrustment redemption; 3. Bifrost Chain Client converts redemptions into chain-specific transactions; 4. Enable the TSS protocol for distributed threshold key signature.

The distribution of the original, pre-cast RUNE supply and the number of burnt runes are as follows: Service Nodes: 500 million (220,447,472 RUNE post-burn) Rewards Network Verifiers and Liquidity Contributors Operating Reserve (THORChain Corporation) : 130 million (65 million after burning) for employee incentives, other sales, and liquidity guided Community Reserves (RUNEVault) : 120 million (now 60 million) Teams and advisors: 100 million (now 50 million) Seed Investors: 60 million (now 30 million) Presale (private placement) Investors: 70 million Initial DEX Offering (IDO) : 7 million (out of 20 million offered in sale, 13 million unsold and later burned)

THORChain's unique automated market maker (AMM) mechanism is called "continuous liquidity pools" (CLP) to drive assets in and out of these pools. It is similar to the main characteristics of other AMMs, such as the increase in the size of the trade relative to the size of the pool of funds, the slip point increases; In contrast to Uniswap's XYK constant function model, the CLP model is composed of two assets, one of which is a RUNE token from beginning to end to avoid free loss. Another unique aspect is the slipping-point based liquidity charge. The scheme increases the fees charged by liquidity providers when the size of trades grows faster than the pool of funds. This effectively incentivises liquidity providers (supply) to actively seek out pools that show signs of growth in transaction size and volume (demand). That would make it more expensive for users who don't care about cost, while allowing smaller transactions to take place at a lower cost than most centralized exchanges. This is a feature that flat-rate AMM does not provide. In terms of liquidity, each pool is made up of RUNE and another asset. For security, the node binds RUNE to gain authority to authenticate the network. The total value of the node's assets is incentivized to be at least the same size as the total value of all pools pledged. This means that the total value of the RUNE bound and pledged will be three times the value of the non-RUNe assets pledged for liquidity. As the pledged assets increase, so will RUNE's value.

In ThorChain's design, RUNE tokens need to act as a settlement medium in the liquidity pool, pledging along with other tokens, so the number of non-Rune assets pledged in the liquidity pool needs to be matched by RUNE assets of the same value. At the same time, based on token design, only one-third of the supply of RUNE is otherwise reserved for liquidity pools, because the remaining two-thirds needs to be used for ThorChain Staking. Therefore, there is simple logic to valuing RUNE tokens otherwise: That is 3 times of the non-RUNE asset scale in the liquidity pool. As long as the non-RUNe asset scale in the liquidity pool keeps growing, RUNE's market value can continue to break upward.

Code base security risk, economic model vulnerability, continuous liquidity pool model vulnerability, development team omissions or malicious attack risk, hacker attack risk, etc.

THORChain is a decentralized trading platform that supports cross-chain transactions of assets on the blockchain of Bitcoins, Ethereum and Bitcoin. By building a liquidity pool on THORChain, any asset and RUNE token need to build a transaction pair, and then maintain the network operation through rotating nodes. As a node, you can gain node interests and transaction fees by pledging tokens, while any user can also pledge assets in the liquidity pool to earn transaction fees and RUNE token rewards. THORChain is regarded as the cross-chain version of Uniswap. Currently, it is bridging the bitenon chain and Ethereum. The project entry point is in line with the requirements of different public chain assets in the market, and has a certain market.

THORChain's suite of cross-chain switching protocols is just a small part of what it is building. It plans to design a protocol that covers all aspects of DeFi, lending and compositing services across various blockchains. In the short term, it will add support for Dogecoin (DOGE), Zcash (ZEC), and Monero (XMR) tokens. In addition, THORChain's funding sources have sufficient funds to ensure the long-term viability of the agreement. Once the mainnet goes live in the first quarter of 2022, token demand should increase, which should also benefit RUNE holders.