Learn Crypto : THORChain THORChain is a permissionless cross- | Cryptoverse

Learn Crypto : THORChain

THORChain is a permissionless cross-chain decentralised exchange (DEX). It is a layer-1 network created with the Cosmos SDK. It also validates transactions using the Tendermint consensus process. The primary purpose of THORChain is to provide decentralised cross-chain liquidity without the requirement for assets to be pegged or wrapped. Pegging and wrapping add risk to the process for multi-chain investors.

THORChain functions as a vault manager, monitoring deposits and withdrawals. This contributes to the creation of decentralised liquidity and the elimination of centralised middlemen. RUNE is THORChain's native token, which is used to pay transaction fees as well as for governance, security, and validation.

The Automated Market Maker (AMM) model of THORChain employs RUNE as the basis pair, which means you may swap RUNE for any other supported asset. In some ways, the project functions similarly to a cross-chain Uniswap, with RUNE serving as a settlement and security asset for liquidity pools.