RUNEPool is live on THORSwap: A New Era of Diversified $RUNE Yield 🌱
Deposit $RUNE to Earn $RUNE by providing liquidity paired with blue-chip asset pools 🏖️
GM THORChads —RUNEPool is now live on THORSwap! ⚡Try here.
This ground-breaking new THORChain feature represents a significant milestone in optimizing liquidity provision and yield generation for RUNE holders.
To put it simply: You can now deposit $RUNE to earn more $RUNE 🔥
What is RUNEPool?
RUNEPool is a strategic feature of THORChain that enhances the liquidity of RUNE by distributing deposits across multiple Protocol Owned Liquidity (POL)-enabled pools. This approach not only diversifies risk but also maximizes yield potential.
When you deposit RUNE into RUNEPool, it gets distributed across various blue-chip asset pools, including BTC, ETH, BNB, AVAX, ATOM, BCH, LTC, DOGE, USDC, USDT and other major assets on the network. This diversification helps dampen the impact of impermanent loss while providing a stable yield.
Key Benefits of RUNEPool for Users:
- Enhanced Yield Opportunities: RUNEPool participants earn yields from all enabled pools, benefiting from a wide range of asset price movements.
- Reduced Impermanent Loss: Exposure to multiple assets in various pools mitigates the risk associated with impermanent loss typically seen in single pool dual LP positions.
- Leverage Incentive Pendulum: Large RUNE holders can use RUNEPool to take advantage of THORChain’s Incentive Pendulum, balancing the network’s economic state by switching between bonding and liquidity positions as needed.
How RUNEPool Works
RUNEPool operates in conjunction with THORChain’s Protocol Owned Liquidity (POL). When you enter RUNEPool, you effectively buy liquidity from POL, which then creates additional capacity for POL to deposit. This system allows your position to be exposed to multiple asset price fluctuations across various pools, providing a more stable and diversified yield vs a single dual LP.
Note, RUNEPool is different to Earn (THORChain Savers Vaults). Your position will still experience Impermanent Loss (IL) as prices fluctuate — but less than a position in an individual pool with high IL, since a RUNEPool position is diversified. The claimable RUNE balance is variable with the prices on the network. Claimable RUNE amounts will change as prices change on the network.
Key Features and Considerations:
- Minimum Duration: Initially, there’s a 90-day minimum deposit (lockup) period, based on the user’s last deposit. This period is adjustable through network parameters by THORChain Node Operators.
- Caps: RUNEPool is capped by the amount of Protocol Owned Liquidity on the network.
- Yield Generation: Participants earn yield from all enabled pools in the network.
- Withdrawal: The claimable RUNE balance is variable and subject to price fluctuations (i.e. potential Impermanent Loss).
A 2% fee will be deducted from your RUNEPool withdrawal profit. No Fee is charged if you exit without profit. No fee is charged for depositing to the RUNEPool.
How to Get Started
- Head over to app.thorswap.finance/runepool and connect your THORChain wallet.
- Choose an amount of $RUNE and click Deposit. A Transaction Confirmation prompt will appear. Verify then confirm.
Note: there is a minimum 90 day lockup period for RUNEPool deposits. If you have a previous RUNEPool position, this counter will be reset to 90 days.
3. As soon as the transaction is confirmed on the blockchain, you will start earning RUNE yield on your deposited RUNE!
4. To view your yield, return to the RUNEPool page and connect the associated THORChain wallet to check Redeemable amount and Earnings.
5. After 90 days from your last deposit, you are able to withdraw from your RUNEPool at any time, click on the withdraw tab to do so.
Powered by SwapKit
RUNEPool on THORSwap is made possible by SwapKit, a comprehensive toolkit that powers the entire THORSwap techstack. SwapKit not only provides easy integration of THORChain cross-chain swaps but also other functions including RUNEPool thanks to our battle-tested robust enterprise level infrastructure.
Read our dedicated SwapKit article to learn more.
Impact on THORChain Ecosystem
Looking ahead, RUNEPool serves multiple key purposes within the THORChain ecosystem:
- Increased On-Chain Liquidity: RUNEPool bolsters RUNE liquidity directly on THORChain, reducing reliance on centralized exchanges.
- Balancing Mechanism: Large RUNE holders can use RUNEPool to balance the network’s Incentive Pendulum, optimizing returns between security (node operation) and liquidity provision.
- Enhanced POL Functionality: An upcoming change to Protocol Owned Liquidity will allow POL to match Earn (Savers Vaults) deposits with RUNE, creating more capacity for RUNEPool.
It’s important to note that RUNEPool operates alongside existing features without affecting Dual Liquidity providers or Earn (Savers Vaults).
Conclusion
RUNEPool is a significant milestone for THORChain and THORSwap, offering a robust solution for enhancing liquidity and providing new yield opportunities for RUNE holders. Put your RUNE to work while supporting the THORChain ecosystem.
Give it a try today on app.thorswap.finance/runepool ⚡
Additional Resources:
- RUNEPool on THORChain — THORChain Blog
- RUNEPool — THORChain Dev Docs
- POL-enabled Pool List
About THORSwap
THORSwap is the leading multi-chain decentralized exchange (DEX) aggregator powered by SwapKit. Perform cross-chain swaps in a permissionless, trustless, and non-custodial manner.
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