THORSwapPrice

(THOR)

THORSwap is a decentralized exchange (DEX) that leverages the THORChain network to facilitate cross-chain swaps of native assets. It enables users to trade cryptocurrencies across various blockchains directly, without requiring wrapped assets or centralized intermediaries. Operating like a similar multi-chain platform, it connects diverse liquidity pools using THORChain's native utility token, RUNE. THORSwap provides a permissionless, trustless, and non-custodial trading experience for digital assets.

THORChain serves as the foundational decentralized liquidity protocol enabling cross-chain transactions, with its native token, RUNE, incentivizing liquidity providers and securing the network. In contrast, THORSwap is a decentralized exchange application constructed atop THORChain. It offers a user-friendly interface for asset trading and liquidity provision. THORSwap's native token, THOR, is primarily utilized for governance, staking, fee discounts, and revenue sharing specifically within the THORSwap platform.

The THOR token is an ERC-20 utility and governance token for the THORSwap platform. Its utility encompasses several key functions. Users can stake THOR to acquire voting rights (vTHOR), earn revenue shares, and access other platform perks. Stakers also participate in governance by voting on proposals concerning fee structures, new features, and upgrades. Additionally, staking THOR (vTHOR/uTHOR) can provide users with significant fee discounts on THORSwap services, potentially up to 100%, with small swaps remaining free for all. A portion of the platform's revenue is also shared with THOR stakers and liquidity providers.

THORSwap incorporates audited smart contracts and a non-custodial design, ensuring users maintain control of their private keys. Its decentralized architecture, built on THORChain's node network, enhances security and resilience. However, like any DeFi platform, inherent risks exist, such as smart contract vulnerabilities. The platform has encountered security challenges, including a past incident involving a social engineering attack on a founder's wallet. It also temporarily paused operations due to concerns about illicit funds, emphasizing the complexities of cross-chain protocols. While THORSwap commits to preventing misuse, these events highlight the necessity of strong user security practices and ongoing industry vigilance.

To use THORSwap, users typically connect a compatible wallet like XDEFI, Ledger, Trezor, or MetaMask. For swapping, users select assets and recipients; THORSwap then utilizes THORChain's liquidity pools to facilitate native asset swaps across various blockchains. For liquidity provision, users can supply assets to pools, usually pairing a native asset with RUNE. This can be done symmetrically (equal value of both assets) or asynchronously (one asset, which is then rebalanced within the pool). Liquidity providers earn a share of the swap fees generated by the platform.

Fees on THORSwap are influenced by liquidity pool depth and deposit size; generally, deeper pools and smaller deposits incur lower fees. A base 0.45% fee is applied to all swaps, with portions allocated to liquidity providers, protocol development, and reserve assets. Additional fees apply for on-chain withdrawals from THORChain. Users can also obtain fee discounts by staking the THOR token on the platform.