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Definition: THORChain

A decentralized exchange (DeX) that enables cryptocurrency trades between blockchains. At time of launch in April 2021, THORChain supported Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Binance Chain and Tether.

Providers, Traders and Nodes
Users become THORChain liquidity providers by depositing their cryptocurrency into a pool and receiving a percentage of fees from traders who exchange assets. THORChain nodes (THORNodes) provide the cross-chain operation by running a node for each chain they support such as Bitcoin or Ethereum. Approximately three dozen nodes are in operation as of 2022 with more expected. THORNodes take turns earning revenue for one month.

The Native Crypto Is RUNE
Every deposit of an asset in a liquidity pool must be paired with RUNE of equal value. With a total supply of 500 million RUNE, traders pay RUNE to validators and liquidity providers. Validators must collectively post twice the amount of RUNE that exists in the liquidity pool for the privilege of being a THORNode.

RUNE is also used for governance where each RUNE equals one vote. THORChain uses an "incentive pendulum," whereby trading fees adjust between the liquidity providers and the node operators. See decentralized exchange.