Short Tail vs Long Tail Crypto Assets
The Problem with Short Tail Crypto Assets
There are some difficulties associated with using THORChain, however. In fact, in its current state, THORChain doesn’t bind all cryptocurrencies together at all. Instead, it actually limits the number of available assets which can pool with RUNE and thus access multichain swaps.
THORChain is excellent when it comes to supporting economically significant assets like BTC, ETH, and BNB, but long-tail assets cannot access THORChain's cross-chain liquidity unless they’re approved by the protocol. Not only does this make THORChain an unfair launch platform, but it also limits the liquidity available to investors. A solution to this problem is therefore needed: one which supports smaller, long-tail crypto assets and creates a fairer approach to launches. This solution is Thorstarter.
Introducing XRUNE
The Thorstarter protocol uses XRUNE as a settlement currency between new projects (IDOs) and THORChain's active pools. Thorstarter therefore acts as a horizontal layer for THORChain, leveraging its established network security and unique economic model to build the next generation of the RUNE ecosystem.
In this paper, we describe the components of the Thorstarter protocol as well as the use cases of XRUNE. We will also discuss XRUNE’s role in building the emerging ThorFi ecosystem in tandem with THORChain. In this way, we believe that the existing functionality of XRUNE can be used to power the next generation of ThorFi.
Last modified 3mo ago
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