Introducing the $THOR Incentive Pendulum & 5x Staking Boost 🔥

Olympus Pro bonds kickstart the new $THOR Incentive Pendulum and 5x boost to single-sided $THOR staking

We are now introducing our very own incentive pendulum to adjust incentive rewards to ensure THORSwap’s longevity and sustainability.

The Olympus Pro partnership is a major step for THORSwap’s long-term sustainability. With liquidity owned, guaranteed and stabilized by THORSwap, we can now adjust incentive rewards for better long-term alignment.

$THOR Incentive Pendulum Explained

$THOR pool is over-efficient

The $THOR pool on THORChain is currently the 2nd deepest pool on the THORChain network with $43M of liquidity. Currently sitting at the 7th most 24 hour volume of nearly $500k, which makes this pool over efficient!

Incentive Pendulum Adjustments

The following adjustments will be made to the THOR Incentive Pendulum:

  1. HUGE increase (Up to 5x!) in single-sided $THOR staking yields
  2. Users acquire discounted $THOR via Olympus Pro Bonds which helps THORSwap acquire liquidity
  3. Responsibly reduce THOR-RUNE LP/farming emissions to a more sustainable level

5x boost to $THOR single-sided staking

We will be gradually increasing single-sided staking rewards by 5x! This is where the game theory comes in hence (🔱,🔱)!

Own liquidity in the THOR-RUNE pool

ETH.RUNE bonds on Olympus Pro allow THORSwap to start acquiring liquidity in the THOR-RUNE pool. After acquiring ETH.RUNE, we will then upgrade it to Native Rune (retiring ETH.RUNE) and deposit the Native RUNE into the THOR-RUNE pool. As pool deposits rebalance, this essentially purchases THOR with RUNE, thus creating a deflationary effect on $THOR.

Reducing LP/Farming emissions

Currently, the daily block rewards are 160,800 $THOR tokens which when added to the pool are rebalanced and auto-compounded directly. This daily inflation plus the auto-rebalancing creates sell pressure by essentially selling half the $THOR block rewards for $RUNE, a sub-optimal use of block rewards.

With a 5x boost to single-sided THOR staking, current LP’ers can asymmetrically withdraw THOR to enjoy the new rewards boost!

THOR and RUNE are positively correlated and coupled with sustainable yield makes it a flourishing pool! The more liquidity THORSwap owns then the more deflationary THOR becomes. Protocol owned liquidity (POL) means the protocol will be more stable, secure, and sustainable and helps bring more utility to THOR.

In Summary

Think of this as THORSwap’s own incentive pendulum, the balance between staking incentives and demand for Olympus bonds.

About THORSwap

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

THORChads DAO

The home of the THORChad Metaverse, where the community can interact with creative projects like NFTs and games. THORChads.com will act as a creative launchpad, supporting new creative community projects with marketing, dev support, and more.

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