Stablecoins Arrive on THORSwap Earn 💰🌱

Introducing new THORChain Savers Vaults: USDT, BUSD, and USDC (Ethereum & Avalanche).

4 min readAug 31, 2023

Nine months ago, THORSwap Earn introduced DeFi users to native single-sided yield with no impermanent loss, thanks to the innovation of THORChain Savers Vaults.

Now, THORSwap Earn expands the list of supported assets to another much requested category: Stablecoins!

Just like depositing and stacking native $BTC, now you can simply deposit USDT, BUSD, or USDC and earn in the same fashion. Remember, with THORSwap Earn, Impermanent Loss and additional $RUNE exposure are things of the past.

Dive in and start earning 👉 app.thorswap.finance/earn

Stable Savers Vaults

Traditionally, earning yield as a Liquidity Provider required committing to THORChain pools with a 50:50 Asset:RUNE ratio. With THORSwap Earn, you can now earn effortlessly on your Stablecoin assets. THORChain Savers Vaults remove the risk of Impermanent Loss and $RUNE exposure.

Quite literally: park your Stablecoins and watch them grow!

Currently supported Stablecoins include:
$USDT (Ethereum ERC20)
$BUSD (BEP2 BNB Beacon Chain)
$USDC (Ethereum and Avalanche ERC20)

These are all anchor assets for TOR (THORChain’s internal USD-pegged settlement asset). In the future more Stablecoins will be supported by THORSwap Earn.

How does it work?

THORChain liquidity pools and trading volume remain the yield source for Savers Vaults. However, instead of a regular liquidity commitment, you’re only dealing with the Stablecoin side. This results in avoiding any $RUNE exposure or Impermanent Loss.

Traditionally, liquidity providers receive rewards each time assets are traded between the THORChain pools they are supplying liquidity. i.e. LP’s who supply USDC/RUNE receive rewards any time USDC is swapped to/from via THORChain.

In the case of THORSwap Earn:

Your USDC goes into the liquidity pool to mint a synthetic USDC which is 1-to-1 redeemable for native USDC. The USDC deposit is swapped to RUNE, and the RUNE is deposited in the pool to mint the synthetic USDC.
The synthetic USDC is backed by the liquidity pool and redeemable 1-to-1. These synthetic Stablecoins, representing a piece of the liquidity pool, earns a share of the yield that the pool generates from swaps.
By taking on just the Stablecoin single side, the regular Asset:RUNE LPers take on extra price risk to RUNE and guarantee the redemption of the synths.

The earnings liquidity pools generate are split accordingly. The pool earnings reward the THORSwap Earn (single side) Saver with approximately 50% of what the dual-sided (Stablecoin:RUNE) liquidity provider earns.

Your Earn deposit can be withdrawn at any time with no penalty. There is a slippage swap fee on entering and exiting, from the swaps to mint or burn your synthetic Stablecoins. On withdraw, the process is reversed. Your synthetic Stablecoins are burned, and the equivalent claim on your native Stablecoins are withdrawn from the liquidity pool.

Note: Users have to pay slip fees when entering or leaving a Savers Vault. Large transactions in shallow pools will incur larger fees to save/withdraw.

How to Get Started

Head over to app.thorswap.finance/earn and connect your wallet.
Choose your preferred Stablecoin — USDT, BUSD, or USDC — and specify the amount you wish to deposit. Depending on the asset and slippage, the UI will provide an estimation of how many days it will take to “break even” (earn back the initial slippage fee).
For Avalanche and Ethereum you will first need to approve the USDT/USDC.
Click Deposit. A Transaction Confirmation prompt will appear. Verify then confirm.
As soon as the transaction is confirmed on the blockchain, you will start earning Single Sided Yield on your deposited Stablecoin!
To view your yield, click the My Positions tab to check Earned and Total Earn performance:

Additional Resources

THORChain Docs: https://docs.thorchain.org/thorchain-finance/savings
Under the Hood: Single Sided Yield & Protocol Owned Liquidity — LP University
Yield Bearing Synths and POL — GrassRoots Crypto

Wrapping Up

THORSwap’s commitment to the bedrock principles of crypto remains unwavering. The arrival of Stablecoin Earn is another large step in offering alternatives to centralized Crypto savings services. The downfall of Celsius and BlockFi have proven the need for a decentralized offering to those who seek to go truly Bankless.

Another reason why THORSwap is #BetterThanCEX 👌

Onwards! 💪

About THORSwap

THORSwap is the leading multi-chain decentralized exchange (DEX) aggregator powered by THORChain. Perform cross-chain swaps in a permissionless, trustless, and non-custodial manner.