THORSwap Earn is here 🌱
Earn native yield with THORChain Savers Vaults with no additional asset exposure or impermanent loss.
THORSwap Earn has arrived! We’re proud to usher in a new era of single-sided yield, powered by THORChain’s latest innovation: Savers Vaults ⚡
It’s as simple as depositing $BTC and earn $BTC. With THORSwap Earn, there’s no longer additional $RUNE exposure compared to traditional LP, therefore no Impermanent Loss.
Try THORSwap Earn today 👉 app.thorswap.finance/earn
What is THORSwap Earn?
Previously, in order to earn yield on THORSwap, one must provide Liquidity to THORChain pools consisting of 50:50 Asset:RUNE.
THORSwap Earn is the new simple way to earn yield on your native crypto assets.
By leveraging Savers Vaults, THORSwap Earn allows users to deposit single side liquidity without the risk of Impermanent Loss and no exposure to $RUNE. Quite simply: deposit your idle assets and receive passive income.
Where is the yield coming from?
THORSwap Earn yield is powered by THORChain liquidity pools. Unlike a traditional liquidity deposit, you’re only taking the asset side, without exposure to $RUNE 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 BTC/RUNE receive rewards any time BTC is swapped to/from via THORChain.
In the case of THORSwap Earn:
- Your BTC goes into the liquidity pool to mint a synthetic BTC which is 1-to-1 redeemable for native BTC.
- The BTC deposit is swapped to RUNE, and the RUNE is deposited in the pool to mint the synthetic BTC.
- The synthetic BTC is backed by the liquidity pool and redeemable 1-to-1. This synthetic asset, representing a piece of the liquidity pool, earns a share of the yield that the pool generates from swaps. By taking on just the 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 (Asset: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Your Earn deposit can be withdrawn at any time with no penalty.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 asset.
On withdraw, the process is reversed. Your synthetic asset is burned, and the equivalent claim on your native asset is withdrawn from the liquidity pool.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 deposit with THORSwap Earn Savers Vault and earn Yield
- Visit app.thorswap.finance/earn and connect your wallet. You can deposit any gas asset such as $BTC, $ETH, $ATOM, $AVAX, $BNB, $DOGE, $LTC, $BCH and earn yield.
2. Once your wallet is connected, select the asset and the amount you want to deposit.
3. Confirm the Transaction Confirmation pop up that appears.
4. As soon as the transaction is confirmed on the blockchain, you will start earning Single Sided Yield (SSY) on your deposit . Note that the APR will be approximately half the APR of a regular LP, e.g If the $BTC LP is earning 4% APR, a single sided deposit in the savers vaults will be earning around 2%.
Yield APR in the UI will be arriving soon after launch of THORSwap Earn, we’re also updating THORYield to support this feature (Mobile first, WebApp to follow).
Download THORYield for iOS or Android here.
Additional Resources
Docs: https://gitlab.com/thorchain/thornode/-/issues/1342
Twitter Space #41 — https://www.youtube.com/watch?v=pY-ad2PXYDI
Feature Runthrough + Demo — https://www.youtube.com/watch?v=qL0pzGm2uMU
Twitter Space #42 — https://www.youtube.com/watch?v=1yF-HSnm-pY
Grassroots Crypto Full Mechanics Explanation- https://www.youtube.com/watch?v=Up2-arSzH5
Risk Analysis: https://twitter.com/CBarraford/status/1591871984589496321
Conclusion
After the launch of our DEX Aggregator — THORSwap Earn represents the next step in our vision to take Cross-chain DeFi to the next level. We’re proud to now highlight two crypto holy grails on our menu:
We believe the launch of THORSwap Earn significantly increases the accessibility of our services to broader Crypto users. By removing exposure to Liquidity pair assets — users no longer need to hand over funds to centralized services to earn real yield on $BTC and other top short-tail assets.
Recent events have highlighted the value of permissionless, trustless systems that respects user privacy and self-custody. We will continue buidl-ing to a high standard that respects the core ethos of crypto. We’ll never compromise, so you will never have to settle.
Onwards! 💪
About THORSwap
THORswap is a multi-chain DEX Aggregator built on THORChain’s cross-chain liquidity protocol and the flagship interface for all THORChain services. Perform permissionless cross-chain swaps right from your own self-custodied wallet. Learn more at https://thorswap.finance.
Twitter: https://twitter.com/thorswap
Discord: https://discord.gg/thorswap
Website: https://thorswap.finance
THORSwap App: https://app.thorswap.finance
THORSwap Docs: https://docs.thorswap.finance
Telegram Announcement: https://t.me/thorswap_ann
Community YouTube: https://www.youtube.com/THORSwapCommunity
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