RUNE Crypto News – THORChain’s Strategic Upgrades and Network Enhancements in 2024
RUNE Crypto News – THORChain, the decentralized liquidity protocol, has published its 2024 year-end report, providing an in-depth overview of its performance, advancements, and strategic upgrades. The report, compiled by Nine Realms, covers key developments that have shaped the protocol’s progress, emphasizing improvements in liquidity, integrations, and network security throughout the past year.
Key Metrics: USD Volume and Liquidity Trends
In Q4 2024, THORChain reported a total USD volume of $13.9 billion, with the highest recorded 24-hour volume reaching $334 million. Despite these strong trading volumes, the protocol experienced a significant decline in total liquidity, which fell from $503 million to $259 million, marking a 48% decrease.
A breakdown of liquidity fees revealed that THORChain collected $5.28 million in fees, while affiliate earnings amounted to $3.92 million. The report also detailed the distribution of liquidity provider (LP) earnings, with 27.83% of the earnings attributed to liquidity fees and the remaining 72.17% coming from block rewards.
Swap Routes and Liquidity Fee Insights
The report also provided insights into the top swap routes by USD volume. The pair BTC<>RUNE led with over $2.6 billion in volume, followed by ETH<>RUNE and BTC<>ETH. Similarly, when it came to liquidity fees, the BTC<>RUNE route dominated, generating $956,030 in fees.
These findings underscore the continued popularity of RUNE as a central asset in THORChain’s liquidity ecosystem, illustrating its pivotal role in maintaining the network’s liquidity flow.
Integrations and Protocol Enhancements
In Q4, THORChain introduced several new integrations and made notable updates to improve the user experience. Among the new integrations were Ledger Live via SwapKit, Bitget Wallet, and Gem Wallet, which further enhanced the protocol’s accessibility and usability for a broader audience. Additionally, THORChain implemented an important adjustment to the minimum swap fee, increasing it to 8 basis points (bps), which was doubled for a double swap. This change aligns with the protocol’s goal of reducing slippage and streamlining swap fees.
One of the most significant protocol upgrades was the introduction of the ability to specify multiple thornames in a swap memo, a feature aimed at enhancing affiliate fee distribution. This improvement marked a key milestone in revenue-sharing capabilities, allowing more efficient tracking and allocation of rewards.
Furthermore, THORChain made an important decision to revert the incentive pendulum to its original form, which now considers all RUNE from all nodes. This adjustment positively impacted liquidity pools, ensuring they earned 75% of all rewards in Q4 2024.
Strategic Upgrades and Future Outlook
Throughout the year, THORChain continued to focus on enhancing the efficiency and security of its network. A number of strategic upgrades were executed, including the reduction of churn migrate rounds, which helped lower gas costs. Additionally, the introduction of a 5% system income burn helped to optimize network economics.
The Cosmos SDK v0.50 upgrade was also a major milestone, facilitating the integration of new features and future functionalities. The introduction of the Cosmos Upgrade Module was a game-changer, enabling seamless hard forks that would prevent consensus failures and increase the overall stability of the protocol.
Looking ahead, THORChain plans to focus on further developments in its App Layer, shifting away from the core protocol layer to mitigate potential risks and vulnerabilities. One of the most anticipated upgrades involves the integration of Solana, which is expected to significantly expand the protocol’s ecosystem. The use of IBC (Inter-Blockchain Communication) is also planned to broaden the asset offerings within the App Layer, providing users with access to a more diverse set of assets across multiple blockchains.
Active Yield Improvements and Layer 1 Assets
A key highlight of THORChain’s future roadmap involves improving active yield generation. The protocol aims to enhance the liquidity provision experience by enabling yield streaming to various Layer 1 assets. This will allow liquidity providers to earn rewards from a broader range of assets, further strengthening THORChain’s appeal as a versatile decentralized liquidity protocol.
Conclusion: Building a More Efficient and Secure THORChain Network
The 2024 year-end report reflects THORChain’s continued commitment to enhancing the protocol’s security, efficiency, and user experience. With significant updates such as the minimum swap fee adjustment, new integrations, and Cosmos SDK upgrades, THORChain is positioning itself to further solidify its position as a leading decentralized liquidity protocol.
As the network looks toward 2025, the integration of Solana and expanded support for Layer 1 assets suggest a bright future for THORChain, one focused on enhancing liquidity provision and cross-chain interoperability. With ongoing strategic upgrades, the protocol aims to not only maintain its competitive edge but also provide enhanced value to its users and liquidity providers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment