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THORChain Surpasses $10B Monthly Volume Amid Bitcoin Safety Debate

THORChain’s liquidity protocol provides local asset swaps on several blockchains.It gives interest-free loans in return for well-known crypto assets such as Ether and Bitcoin.

Claudia Fischer

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THORChain Surpasses $10B Monthly Volume Amid Bitcoin Safety Debate

THORChain, a decentralized liquidity forum, has recently made a significant development. As per the reports, the cumulative per-month trading volume of the platform has gone beyond $10B for the 1st time, making history. Nonetheless, BTC maximalists are polarized on the provision of sufficient safety to likely borrowers.

THORChain Touches $10B in Monthly Volume

The company shared a post on its official X account on the 27th of this month to disclose the respective development. The firm declared this as a landmark. Runscan’s statistics say that the protocol has spiked beyond the $10.26 spot.

thorchain post

 This is the initial month for THORChain to witness that point in trading volume. Following that disclosure, the Bitcoin maximalists started a debate in a series of posts and comments. They discussed the likely pitfalls and security of THORChain for BTC investors who pursue interest-free loans on the platform.

Fred's response

Fred Krueger, a Bitcoin investor, and mathematician, took to X, expressing willingness to pay the price for THORChain’s credibility. According to him, Bitcoiners can safely bet on the protocol’s Bitcoin-backed loans. They can reportedly get more through liquid funds.

Bitcoin Maximalists Stay Divided in Debate for Safety on the Platform

Nevertheless, Dylan Le Clair (a Bitcoin analyst) argued against Krueger’s views. Clair mentioned that a BTC collateralized loan based on the altcoin exchange rate offering 0% interest changes the risk.

Also Read: Decentralized Finance (DeFi) Surges and Hits New Yearly TVL Peak in 2023

 In this respect, he added, a person is shorting tail without knowing its quantification. THORChain’s liquidity protocol provides local asset swaps on several blockchains. It gives interest-free loans in return for well-known crypto assets such as Ether and Bitcoin. Moreover, it does not implement static expiry dates or liquidations.

As included in the most recent upgrade of the protocol it slashed collateral requirements for ETH and BTC. Hence the collateral requirements have dipped from the previous 400% to the new 200%. This permits the consumers to borrow 50% of the cumulative value of the submitted assets.

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