A decentralized liquidity protocol known as THORChain or RUNE enables multiple chains to allow users to trade tokens without the involvement of outside intermediaries and without the need for wrapped tokens. Although it offers liquidity, consumers retain complete ownership of their assets. We'll cover all you need to know about THORChain in this post, along with instructions on how to purchase RUNE coins on MEXC Global.
Application of RUNE
The native token of THORChain is called RUNE. It serves as the foundational token for trading with other supported assets. The use cases are as follows:
Threshold Signature Schemes (TSS) are used by THORChain, a layer 1 application built on Cosmos and Tendermint, to safeguard its asset vault. Two-thirds majority agreement is required for funds to enter or exit the primary TSS vault, and this agreement is provided by the layered Byzantine Fault Tolerance (BFT) consensus mechanism that Tendermint and TSS provide.
Liquidity pools also make it possible for asset exchanges on THORChain. These pools include assets that liquidity providers have deposited and are secured by a network of node operators. Liquidity providers place their assets in liquidity pools to create yield, which is made up of swap fees and system rewards. Anybody can raise the liquidity without the involvement of a third party. In truth, THORChain is also non-custodial because only the initial depositor is allowed to withdraw coins from the pool. Liquidity providers may also offer asset pools if they are tokens that the system supports.
By interacting with one another, independent node operators (THORNodes) assist in building the swapping network. For each swap finished, they will receive payment in exchange for defending the network. Before becoming a node operator, a user must offer a bond of RUNE. These bonds are employed as a form of security to ensure that node operators act in the best interests of the network. For the total bonded, the RUNE pooled size must be doubled.
This liquidity pool approach allows THORChain to determine the value of each asset in every other asset by comparing pool balances. To put it another way, THORChain acts as a vault manager, monitoring deposits and withdrawals and determining asset prices based on pool ratios. This encourages decentralized liquidity by getting rid of centralized intermediaries.
How can I purchase RUNE tokens?
To purchase RUNE on MEXC, take the following actions:
The native token of THORChain is called RUNE. It serves as the foundational token for trading with other supported assets. The use cases are as follows:
- Security. In order to guarantee security, node operators must bond twice as many RUNE as they supplied to a pool. The RUNE bonds are retained as collateral to ensure that the node operators act in the network's best interest.
- Governance. The asset or chain that token owners want to prioritize is up to them. They vote with their money to do this. For example, a pool with the greatest proportion of committed RUNE will be given preference.
- Asset for settlement. No matter how they are added to or subtracted from a pool, all assets have a 50% pairing with RUNE.
- Incentivization. Block rewards and swap fees serve as RUNE's means of paying liquidity providers and node operators on a set emission schedule. RUNE can also be used to pay for gas.
- There are eight decimal places in a Tor, the smallest unit of RUNE. RUNE aims to advance in the direction of a predictable, deterministic value. RUNE should have a market capitalization that is at least three times greater than the sum of all non-RUNE assets in the ecosystem's liquidity pools by design.
Threshold Signature Schemes (TSS) are used by THORChain, a layer 1 application built on Cosmos and Tendermint, to safeguard its asset vault. Two-thirds majority agreement is required for funds to enter or exit the primary TSS vault, and this agreement is provided by the layered Byzantine Fault Tolerance (BFT) consensus mechanism that Tendermint and TSS provide.
Liquidity pools also make it possible for asset exchanges on THORChain. These pools include assets that liquidity providers have deposited and are secured by a network of node operators. Liquidity providers place their assets in liquidity pools to create yield, which is made up of swap fees and system rewards. Anybody can raise the liquidity without the involvement of a third party. In truth, THORChain is also non-custodial because only the initial depositor is allowed to withdraw coins from the pool. Liquidity providers may also offer asset pools if they are tokens that the system supports.
By interacting with one another, independent node operators (THORNodes) assist in building the swapping network. For each swap finished, they will receive payment in exchange for defending the network. Before becoming a node operator, a user must offer a bond of RUNE. These bonds are employed as a form of security to ensure that node operators act in the best interests of the network. For the total bonded, the RUNE pooled size must be doubled.
This liquidity pool approach allows THORChain to determine the value of each asset in every other asset by comparing pool balances. To put it another way, THORChain acts as a vault manager, monitoring deposits and withdrawals and determining asset prices based on pool ratios. This encourages decentralized liquidity by getting rid of centralized intermediaries.
How can I purchase RUNE tokens?
To purchase RUNE on MEXC, take the following actions:
- Enter your MEXC account credentials, then select [Trade]. Select [Spot].
- To view the trading pairs that are accessible, enter "RUNE" into the search field. RUNE/USDT is a good illustration.
- Go to the [Spot] box by scrolling down. Enter how many tokens you wish to purchase. Open a Limit order, a Market order, or a Stop-limit order, as appropriate. Use a market order as an illustration. To finalize your purchase, click [Buy RUNE]. The purchased tokens can be found in your Spot Wallet.
