Threadcast link:
@khaleelkazi/re-leothreads-2fs6bg8d7
Link to recording:
https://x.com/khalkaz/status/1912266051712364630
Speakers
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Diving Into ThorChain Bonds: Securing the Network and Scaling the App Layer
In this Chain Chatter episode, Kenton, an experienced crypto asset manager and ThorChain enthusiast, provided valuable insights into the current state of ThorChain's bonding process and the exciting developments around the upcoming app layer.
Bonding Trends and Network Security
Kenton shared that bonding on ThorChain has been going exceptionally well, with the network reaching near all-time highs in terms of the number of nodes and the total amount of RUNE bonded. This growth has occurred despite the broader crypto market downturn, indicating strong underlying demand and confidence in the protocol.
A key focus of the discussion was the importance of maintaining and increasing the level of bonded RUNE to ensure the network's security. Kenton emphasized that the more RUNE that is bonded, the harder it becomes for potential bad actors to coordinate an attack on the protocol. He explained the concept of the "economic security" provided by the bonded RUNE, where node operators have more to lose than gain from attempting to steal assets.
Navigating the App Layer and Scaling Considerations
The conversation then shifted to the upcoming ThorChain app layer, which is expected to introduce new features and functionalities to the ecosystem. Kenton expressed excitement about the potential of the app layer, particularly the possibility of enabling features like perpetual futures trading. However, he also highlighted the need to carefully balance the growth of the app layer with the security of the core ThorChain protocol.
Kenton discussed the recent debates around potentially increasing the security cap, which limits the total amount of assets that can be held on ThorChain. While he acknowledged the arguments for removing the cap entirely to allow for unlimited growth, he cautioned that this could introduce new risks and vulnerabilities. Instead, Kenton suggested exploring options to gradually increase the cap, while maintaining robust security measures.
Rune, TCY, and the Future of ThorChain
The discussion also delved into the relationship between RUNE and the recently introduced TCY token, which was created to compensate users affected by the ThorFi incident. Kenton praised the TCY solution as a fair and pragmatic approach to addressing the issue, noting that it provides a reasonable path for affected users to potentially recoup their losses.
Kenton discussed the potential interplay between RUNE and TCY, suggesting that the two tokens may trade in a relatively synchronized manner, with TCY potentially offering a more accessible yield opportunity for some users. He also explored the idea of ThorChain potentially implementing open-market buybacks of TCY in the future, which could help the protocol recapture a portion of its revenue.
In conclusion, this engaging discussion provided valuable insights into the current state of ThorChain, the importance of bonding and network security, and the thoughtful approach being taken to scale the protocol while maintaining its core principles. Kenton's expertise and passion for the project shone through, offering a comprehensive understanding of the challenges and opportunities facing ThorChain as it continues to evolve.