THORChain 2023 Look Ahead
A look back at THORChain in 2022 and a look ahead at what’s to come
2022 was an exceptional year of development and growth for the THORChain protocol. Mainnet was achieved in June 2022 with four new integrations chains were added, Dogecoin, Terra, Cosmos, and Avalanche. Many new features were added including Synthetics and in-kind Savers setting it in a firm position for the year ahead. THORChain and its community also experienced challenges as the crypto turmoil of the year unfolded which included the removal of the Terra integration. Despite the turmoil, on every metric, the network experienced record growth over the course of the calendar year. Read the most recent ecosystem update for a more granular list of ecosystem updates.
THORChain brings something to the space that’s unique — truly decentralized, scalable cross-chain liquidity infrastructure. Its importance cannot be overstated. To the builders: continue to build from first principles. Think critically — question often. Have strong ethics. Verify, don’t trust. Finally, build unstoppable projects that will empower users.
In 2023 above all else the protocol will continue ensuring its goals of decentralization, minimal intervention, node orientated governance and maintain its high standards in security and code releases.
As a snapshot, 2023 will see:
- Completion of Planned Obsolescence
- Grow Savers and Deprecation of Impermanent Loss Protection
- Lending released, the last piece of THORFi
- Greater UX Improvements for Developers
- More wallet and interface integrations
- Expansion of the DEX Integration
Yearly Growth Metrics:
Available on https://thorchain.net/insights
Total Value Locked
Total Value Locked: 64.3m RUNE to 154.5m RUNE (+240%)
Total Value Pooled: 30.8m RUNE to 73.6m RUNE (+238%)
Total Value Bonded: 33.5m RUNE to 80.9m RUNE (+241%)
Swap Count
Unique Swappers Count: 357 swappers to 749 swappers (+209%)
Cumulative Swap Count: 1.1m swaps to 8.2m swaps (+745%)
New in 2022
In July 2022, an article “THORChain’s Next Phase” was published. Let’s recap what was accomplished since then:
Major Network Primitives
- Single asset yield on Layer 1 assets on THORChain, a massive success
Savers on 31 December 2022 (Compare To Today)
- DEX Aggregation allows a user to execute transactions utilizing multiple DEXs and liquidity sources with one signature, eliminating the need to make multiple swaps to trade low liquidity assets across blockchains
- Exchanges like THORSwap, Rango, XDEFI, and Defispot have built custom aggregators and routing APIs
- Support for Uniswap V2 + V3, SushiSwap, 1Inch, 0x, Kyber Network, Pangolin and Trader Joe. Any DEX can be integrated and anyone can create their own DEX aggregator routes.
- Multichain name service for use within THORChain, especially for affiliate payments on swaps
Blockchain Integrations
Wallet Integrations
New wallets have integrated with THORChain to provide its services to their users
- Cross-Chain Swaps and Savers
In addition to the other wallets, DEXs, and aggregators that utilize THORChain: AsgardEx, THORSwap, THORWallet, ShapeShift, XDEFI Wallet, Rango Exchange, Defispot, Lends, Decentralfi, Liquality Wallet, and Ferz Wallet.
What to Expect in 2023
There are many exciting new features, products, and integrations being worked on for 2023. Some are early in research phases and others are imminent. There is no guarantee of adoption for any listed feature — this list is just what is currently being worked on and considered. Anything on this list may change at any point. Features are delivered after comprehensive periods of testing and only at the behest of the nodes.
Wallet Integrations
- New wallets will integrate THORChain for swaps and yield
Exchange Integrations
- More DEXs will integrate with THORChain’s DEX Aggregator
- Centralized exchanges may begin using THORChain’s infrastructure and aggregator
Synth Cap Raise & Protocol Owned Liquidity (POL)
- Synthetic assets are currently capped at 30% the total pool depth
- The synth cap will be raised to 50% before POL is activated (pending vote)
- POL will help maintain a safe synth utilization ratio to allow Savers to scale
New Blockchain Integrations
- Binance Smart Chain is the next chain to be integrated, currently in early development
- Other chains may be integrated after a successful node vote
Deprecation of Impermanent Loss Protection (ILP)
- ADR-005 has been passed and ILP will be removed for new deposits
- After block 9450000, new liquidity providers will not be eligible to receive ILP. Depositors before the cutoff will be grandfathered forever.
- Savers with no RUNE exposure removes the need to protect new LPs against impermanent loss
Lending and Borrowing
- No Liquidations, No Expiration, No Interest
- The innovative lending design can be found here
- Overcollateralized lending
- User can provide any supported Layer 1 asset as collateral and receive any asset as debt
- Feature still requires extensive testing and a final node vote
Order Books
- The orderbook design can be found here
- Open orders are held as synthetic assets in a new module
- Orders are automatically executed when the specified price limit is hit
- Orders are executed peer-to-pool instead of peer-to-peer
- Feature still requires extensive testing
Perpetuals Contracts
- Research/design phase — design considerations can be followed here
- Feedback welcomed
UX Improvements for Developers
- Nine Realms and the Core Team are working diligently to make the THORChain integration experience as simple as possible for new and existing wallets and DEXs
- Improved Developer Documentation
Source : [THORChain 2023 Look Ahead](medium.com/thorchain/thorchain-2023-look-ahead-c1488da2c238) by Nine Realms - THORChain by Nine Realms / January 31, 2023
