Exploring Thorchain - Providing liquidity and my journey so far

in LeoFinance3 years ago (edited)

Exploring Thorchain

If you found out about Thorchain on my account, I’ll be so glad, and if you discovered Thorchain from other sources, nice, I’m even happier. The same way I’m all excited about Hive, Leo, Cub, is the same way I’ve become with Thorchain over the time, recognizing the solution it offers with its unique set of features.

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Today makes it the 22nd day I started to provide liquidity on Thorchain, and things seem to be going amazingly well. If you’re reading my blog about Thorchain for the first time, you really need to read this post.

But could it be me being high on shots of optimism so I can sleep at night?Lol

Why not be the judge.

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I provided liquidity asymmetrically in the Rune:BTC pool(I explained what this means in the post in that link), my bet was that Bitcoin would outperform Rune in the next 3 months which will potentially yield me some extra Runes plus fees and everything seemed to be going just well till Elon Musk happened and Bitcoin came tumbling down.

As you know, the entire market came tumbling down right behind it...Rune wasn't spared, it dropped from 20$ to 6$ yup! And guess what? I bought it all the way down, I ran out of fiat when it entered single digit price levels.....it hurt.

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Bitcoin chart from May 9 skyfall

It was obvious there was no way Rune was going to survive such dump from bitcoin, it implied that everyone providing LP in the Rune:Btc pair would be hit most, as the system had to be selling Rune off to balance the Bitcoin side as Bitcoin and other pairs dumped away...

I’m presently suffering some interesting impermanent loss, but due to how Thorchain is set up, all the IL’s I incurred will be refunded as long as I remain in the pool for 100 days which I plan to, so I’m pretty much covered. Plus it’s still the 1st month so Bitcoin most likely still has some interesting moves to make.

Also, irrespective of Bitcoins mooning, Thorchains unique economics, combined with its attractive speculative characteristics which is better explained in this post titled Deterministic Value and How we can Use it to Predict Price Action in the Future ,..

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..was put to test and Rune became one of the tokens with the quickest recovery from the Bitcoin dump, as it picked up and touched 13$ proving the mechanics simply works, moreover, the entire crypto situation was bound to correct itself at some point, especially as the Elon Musk debacle subsided

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In the mean time, many interesting things have also been going on within the Thorchain ecosystem, liquidity pools have expanded, different wallets can now be used to access the swap protocol and it is super easy too.

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Thorchain also got some major publicity from the live interview that took place on Yahoo Finance with the Lead dev of Thorchain, C. Berraford and Zack Guzman from Yahoo Finance a day ago.

At the time of writing this post, Thorchains trade volume peaked at $40M under the capped liquidity as the Bitcoin liquidity continues to deepen at around $20M on the MCCN with an APY of 16% in the Bitcoin pool.

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From what I’m seeing, Thorchain is not slowing down and has every tendency to be the number one decentralized AMM and cross chain swap protocol. People ask me if it’s too late to invest in Rune, I think it’s still very early to get involved.

Kindly share your thoughts with me.

If you’d like to know about Thorchain through my lens, I suggest you read the following posts.

https://hive.blog/hive-167922/@mistakili/usdrune-bounced-off-usd9-still-extremely-underpriced-still-extremely-bullish

https://hive.blog/hive-167922/@mistakili/thorchain-mccn-goes-live-after-3-years-bitcoin-at-new-ath-bnb-quarterly-token-burn-incoming

https://hive.blog/hive-167922/@mistakili/setting-up-thorchain-wallet-with-trust-wallet-raisethecaps

Thanks for reading

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Wow, so you're in the full on Main-net staking, not BEP?

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Yep...I’m in the main net

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People ask me if it’s too late to invest in Rune, I think it’s still very early to get involved.

I intend asking before arriving at the above statement. To be honest Thorchain pops up every now and then on my feed either here or Twitter but I haven't had the urge to give it a look.

Great to see your enthusiasm over this project. I've got to check this out.

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You remember how I was always on about Leofinance in the early days, I feel exactly the same way about Thorchain and even more confident in the project. Do check it out

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Rune has been really nice to me. THORChain is a great project

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I read your post about your experience on it, you’re about to love it even much more