Just Alvin
January 10, 2025 06:26
THORChain's 2024 year-end report highlights major developments, including new integrations, liquidity changes, and strategic upgrades to enhance the network's efficiency and security.
THORChain, a decentralized liquidity protocol, has published its comprehensive year-end 2024 and Q4 report, detailing important advances and strategic moves that have taken place over the past year. According to Nine Realms, the report reveals a series of key metrics and improvements aimed at increasing the efficiency and security of the protocol.
Key Metrics and Financial Forecasting
Throughout Q4 2024, THORChain reported a total USD volume of $13.9 billion, with the highest 24-hour volume recorded at $334 million. However, the total liquidity saw a decline, falling from $503 million to $259 million, representing a decrease of 48%. Liquidity fees collected amounted to $5.28 million, and related earnings reached $3.92 million. The report also pointed to a breakdown of LP earnings, with 27.83% due to liquidity fees and 72.17% to blocking awards.
Change routes and liquidity fees
Top swap routes by USD volume included BTCRUNE, ETHRUNE, and BTCETH, with BTCRUNE leading at over $2.6 billion. Likewise, the main routes through fees saw BTCRUNE's liquidity at the forefront, generating $956,030 in fees.
Protocol integration and enhancement
In Q4, THORChain introduced several integrations, including Ledger Live via SwapKit, Bitget Wallet, and Gem Wallet. A notable change was the change in the minimum swap fee to 8bps, doubling for a double swap. This change aligns the flow swap discount target with the lowest discount fee.
Other protocol improvements include the ability to specify multiple lots in a swap note for linked fee distribution, marking a major upgrade in revenue sharing capabilities. The incentive pendulum has been returned to its original form, now considering all RUNE from each node, preferred liquidity pools to earn 75% of all rewards in Q4 2024.
Strategic Updates and Future Outlook
THORChain made several strategic updates, including a reduction in churn migration cycles to lower gas costs, a 5% system revenue burn, and an upgrade to Cosmos SDK v0.50 to support future functionality make it possible. The introduction of the Cosmos Update Module allows for seamless hard forks to prevent consensus failure.
Looking ahead, THORChain plans to focus on enhancing its App chain, moving away from the basic protocol layer to mitigate risks. Future developments include the integration of the Solana chain and the use of IBC to expand asset offerings within the App Layer.
The report concludes with an emphasis on active product developments, aimed at enhancing the liquidity provision experience by allowing product flow to various Tier 1 funds.
For the detailed report, visit the original source on Medium.
Image source: Shutterstock
