THORChain climbs 34% after the activation of synthetic assets
The price of the native asset for the cross-chain decentralized exchange THORChain (RUNE) soared 34% in one day following the activation of synthetic assets on the network.
At the time of writing, the price had reverted to a 21% gain in the past 24 hours to settle at $5.27.
Cryptosynthetics or synths are tokens derived from other digital assets that are pegged to the value of the underlying collateralized asset such as Bitcoin (BTC) or Ether (ETH). In THORChain’s variant, the project chose to back up its synths with 50% of the underlying asset and 50% in RUNE. The activation went live earlier today and synthetics such as sBTC and sETH can now be traded on the network.
THORSwap Finance Underline the benefits of synthetic assets via a March 10 blog post, noting that “synths have great utility for traders and arbitrageurs as they can be traded almost instantly and at a fraction of the cost compared to native L1 swaps” .
“In the future, this will allow THORChads to also gain performance with synths through crates and provide other exciting THORFi utilities,” the post adds.
The activation went live earlier today and synthetics such as sBTC and sETH can now be traded on the network. The price of RUNE reacted positively, rising over 20% to settle at $5.27.
Earlier this week, the team outlined its roadmap moving forward, as it pledged to make “decentralized liquidity 10x” greater than centralized. After ticking off the synths on the list, other important future milestones include decentralized finance (DeFi) – dubbed THORFi in this case – services such as lending and savings.
Thorchain Records $40M Volume On Synths Launch Day
A good start
Bullish $RUNE pic.twitter.com/rgJPu4MFeI
— $RUNE Ranger (@TheRuneRanger) March 10, 2022
Another notable point of interest will be the highly anticipated mainnet launch on THORChain which is nearing completion but still does not have a specific launch date. As Cointelegraph previously reported, RUNE’s recent surge, which also saw it rise over 48.4% in the last 14 days, can also be linked to the full integration of Terra (LUNA) into the THORChain protocol earlier this month.
Chad Barraford, lead developer of THORChain, also underline the prominence of synths freshly launched via Twitter earlier today, suggesting that trading volume on the network may soon increase:
“Trading with synthetics on THORChain has half swap fees, making swaps cheaper, gas fees cheaper and faster for traders. You can make near instant transactions at high volume.
