THORChain (RUNE) announces important developments in 2024

THORChain, a decentralized liquidity protocol, has released its comprehensive 2024 year-end and Q4 report, detailing the significant developments and strategic shifts that have occurred over the past year. According to Nine Realms, the report showcases a series of key metrics and developments aimed at enhancing the protocol’s efficiency and security.

Key metrics and financial overview

Throughout Q4 2024, THORChain reported total volume of $13.9 billion, with the highest 24-hour volume recorded at $334 million. However, total liquidity witnessed a decline, as it fell from $503 million to $259 million, a decrease of 48%. Liquidity fees collected amounted to $5.28 million, while affiliate companies’ profits amounted to $3.92 million. The report also highlighted a breakdown of LP’s profits, attributing 27.83% to liquidity fees and 72.17% to block rewards.

Swap methods and liquidity fees

The top swap methods in terms of USD volume included BTC<>RUNE, ETH<>RUNE, and BTC<>ETH, with BTC<>RUNE leading by over $2.6 billion. Likewise, the top tracks in terms of liquidity fees also saw BTC<>RUNE come out on top, achieving $956,030 in fees.

Integration and protocol improvements

In Q4, THORChain introduced several integrations, including Ledger Live via SwapKit, Bitget Wallet, and Gem Wallet. A notable change was the adjustment of the minimum swap fee to 8 basis points, doubling the double swap. This change aligns the broadcast swap slippage target with the minimum slippage fee.

Additional improvements to the protocol include the ability to specify multiple names on a swap note to distribute affiliate fees, representing a significant upgrade in revenue sharing capabilities. The incentive pendulum was also returned to its original form, now taking into account all RUNE from all nodes, which favored liquidity pools receiving 75% of all rewards in Q4 2024.

Strategic promotions and future outlook

THORChain has implemented several strategic upgrades, including reducing migration rounds to reduce gas costs, a 5% system income burn, and updating the Cosmos SDK v0.50 to facilitate future functionality. The introduction of the Cosmos upgrade module enables seamless hard forks to prevent consensus failure.

Looking to the future, THORChain plans to focus on enhancing its application layer, moving away from the core protocol layer to mitigate risks. Possible future developments include Solana chain integration and use of IBC to expand asset offerings within the application layer.

The report concludes by focusing on Active Yield improvements, with the aim of enhancing the liquidity provisioning experience by allowing yield to flow into various Tier 1 assets.

For the detailed report, visit the original source at Mediation.

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