Today's was the official start of on boarding Luna and UST on Thor Chain. For those who do not know this was many months if not years in the making. The demand for use of UST has risen over the past year and continues to thrive in 2022. Rune allows holders of Terra coins to now be able to swap into other native assets outside the Terra ecosystem. Not to say this was not feasible before but now it is can be done with DEX such as Thor Swap.
Importance of Native Tokens
There are many chains that will accept blue chip coins such as BTC, ETH, LTC, BNB and so forth. Yet there has always been a sticking point with these assets. That is in order to move a specific coin from one chain to another the coin itself will need to be wrapped or modified in order for a specific chain to recognize.
Yet over on Thor chain it operates different. Instead of having to convert different forms of the same token all investors have to do is swap in Rune, native token of Thor chain, to switch between assets. Best part is the assets are in their native form. That means blue chip tokens such as BTC, ETH, LTC, and so forth are stored as actual tokens of their respective chain and that Thor chain recognized as such.
The major benefit of doing this is the holder of the tokens remain original owner of the tokens. The assets do not change in order to be stored on Thor. In addition to having be able to trade native assets the investors are able to swap assets through different chains without having to use any form of bridging. Thor swap is were investors can swap in one native token to another by selling their token for Rune and swapping Rune for a different native token.
Multi-chain Opportunities?
From a bigger picture users of Thor chain has the opportunity to hold multiple native assets on one wallet and be able to use it for all sorts of purposes. Whether farming in pools to play to earn there are a host of use for all the different coins that Thor is now able to accept.
The future looks bright for Thor as they further expand their reach to other chains. As of now there most popular chains are BTC, BNB and ETH, but with today's connection to Terra and many others to follow one can imagine how much interconnections of native tokens there can possibility be on Thor chain.
Conclusions
The most exciting parts of cryptocurrency are yet to come. Imagine one chain having a way to yield farm stable coins at 19.5% APY and holders of BNB can swap out of them to stable coins to yield the 19.5% and swap back to BNB all with ease. This is one opportunity that can be possible with Thor chain.
Over two years ago Thor chain had shared their plans to the public.
Not only arbitrage opportunities but better options for Defi uses by having ties to multiple chains due to being able to hold chains' native tokens in one single place through Thor chain.
Looking forward to post more protocols on Thor Chain and its use in the near future. For now one of the better opportunities is to provide liquidity over on Thorswap to yield Thor tokens and a portion of the trading fees for those using the Terra swaps.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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