THORChain — Streaming Swaps - What is iT?

8 months ago (Edited)

Hey All,

Off lately we have been seeing ThorChain native $RUNE making big strides and it stands out completely with the introduction of Streaming Swaps which is already in action and Lending is also about to come IN pretty shortly. Where all the major crypto tokens were falling $RUNE was in green and today as well it is 10+% up and is trading for $1.60+ and is ranked as #78 coin as per coingecko tracking system.

The Thorchain protocol allows one to Swap between blockchains directly from your wallet directly and eliminates the need of Centralized Exchanges (CEXs). In this post I will try to explain and talk about Streaming Swaps the recent addition to the Thorchain kitty.

THORChain — Streaming Swaps - What is iT?

In a nutshell the Streaming Swaps break up one swap into multiple sub-swaps that are executed over a period of time. It is said that the Streaming Swaps are similar to Time Weighted Average Price (TWAP) trade, limited to a 24 hour period.

THORChain is sets to achieve the following with Streaming Swaps::

Swaps with real Layer 1 assets — including Bitcoin
Entirely transparent, on-chain, open source, & with no oracles or other 3rd party dependencies
With secured and highly liquid synthetic assets for faster finality
At the best price execution for almost any trade size

The above image clearly explains Streaming Swaps with an example. Where one user wants to trade his $BTC for $ETH and is looking for best rate which means as much lower slippage as possible. Also at the other end user is willing to wait and is in no RUSH for the trade to happen instantly. Therefore the Thorchain protocol is in position to break up the trade into smaller parts to swap over a couple minutes and get the best rates for its users. Right now the Streaming Swaps is also enabled on THORWallet DEX which is the only non-custodial wallet to swap native crypto assets across chains. I have been using the THORWallet DEX for quite sometime now and have my $RUNE recent investment sitting here. The Streaming Swap was launched on 1st August 2023 and I saw this news by thedefiant where they stated that the largest ever swap of 3150 ETH for 2,482,348 RUNE, worth roughly $3.65M, was made on 15th Agust, 2023 and we continue to see larger volumes traded. To be honest, I haven't tried the streaming swaps as I had already swapped my major $BTC for $RUNE before the streaming swaps was launched. But I do look forward to leveraging this feature of Thorchain in near future. Cheers

Have Your Say on Thorchain - $RUNE - DEX?

Are you invested in $RUNE? Did you hear about this news on THORFi Lending? Can $RUNE hit $5+ mark from here? Are platforms like @Lends_so, @BrokkrFinance, @THORSwap fully DEX? Can we consider funds on these platforms SAFE? Are they PURE DEX as claimed? Would love to hear your thoughts around it in the comment box below? Cheers