THORChain Reaches $10 Billion: The Cost of Security for Bitcoiners
Date: 2024-03-30 Author: Henry Casey Categories: BLOCKCHAIN
Historical moment
THORChain has reached a total monthly trading volume of more than $10 billion. However, a debate has flared up among Bitcoin maximalists about the safety of the platform for borrowers.
Bitcoin maximalists are divided on the security of THORChain. Mathematician and Bitcoin investor Fred Krueger supported the platform, calling it "real", while Bitcoin analyst Dylan Le Clair expressed doubts.
THORChain (RUNE) provides interest-free loans against crypto assets such as Bitcoin and Ether, with no fixed terms or liquidation. The latest protocol update reduced the collateral requirements from 400% to 200%.
Risks and Disadvantages
Analyst Chris Black noted two main risks of the THORChain lending model: the possibility of protocol exploitation and changes in terms by a centralized provider. The protocol has already suspended its network twice due to potential security vulnerabilities. Despite the challenges, THORChain continues to evolve, providing innovative solutions in the world of decentralized finance (DeFi)
