THORChain's Q3 2024: New Developments and Strategic Shifts

THORChain has released its Q3 2024 ecosystem report, detailing significant developments and strategic shifts within the network, according to Nine Realms. The period from July to September 2024 saw the introduction of new features such as RUNEPool, a dual liquidity primitive, and a network hard fork that upgraded the Cosmos SDK version.

Key Developments in Q3 2024

Among the noteworthy changes, THORChain implemented a minimum swap fee and introduced a RUNE burn mechanism to enhance system income. The network is also focusing on de-risking the base layer by pausing new loans and reducing the Savers program's size. This move aims to prepare for the new App Layer, which will allow external teams to deploy smart contracts leveraging THORChain’s liquidity.

THORChain's development teams are also integrating the Base and Solana chains, connecting to the Inter-Blockchain Communication (IBC) protocol, and improving the liquidity providers' experience.

Performance Metrics

During Q3 2024, THORChain recorded a total USD volume of $8.17 billion, with the highest 24-hour volume reaching $284 million. The network saw a 12% increase in total liquidity, growing from $259 million to $289 million. Liquidity fees collected amounted to $6.37 million, while affiliate earnings totaled $3.22 million. Liquidity provider earnings consisted of 39.55% from liquidity fees and 60.45% from block rewards.

New Integrations and Enhancements

THORChain has expanded its ecosystem with new integrations, including OKX via SwapKit, Zengo, and Li.Fi for Bitcoin swaps. The network also introduced support for Bitcoin Taproot addresses.

Strategic Shifts and Roadmap

Looking ahead, THORChain is pivoting towards the App Layer to de-risk the base protocol. This shift is intended to simplify the base layer and enhance security while supporting new protocols. Notable future integrations include the Base and Solana chains, with the latter requiring significant architectural changes due to its unique encryption type.

THORChain also plans to leverage IBC to bring in additional assets, enhancing liquidity and network connectivity. The introduction of bridge assets will allow for more seamless token transfers and integrations with CosmWasm smart contracts.

Further developments include the Ethereum Router V5 upgrade and ongoing governance proposals, such as increasing the maximum number of bond providers per node and adjusting the outbound delay for transactions.

As THORChain progresses, it continues to focus on enhancing its offerings while maintaining a strong security posture, positioning itself as a robust player in the decentralized finance space.