Introduction

Methodology

Results

Conclusions

THORChain synths are also cheaper to exchange than layer-1 assets while having a 50% reduction in swap fees when swapping asset to synth, synth to asset or synth to synth. But, perhaps its main selling point on offer is an uncomplicated and more lucrative way to yield farm. THORChain also has in its pipeline the capability for synth holders to earn a return by simply locking their assets in a vault. This makes the process approachable to newer participants, as they would no longer need to understand the concept of liquidity pools and the risks of impermanent loss.

The train of thought for this analysis is:

1. Identify Synthetic asset mints: by address, synth type & blockchain
2. Identify which addresses have swapped (burned) the same synths that they have synthed
3. Identify which addresses have staked the synths that they have synthed
4. Merge all the information and analyze

Thorchain is a decentralized liquidity protocol that specializes in cross-chain connectivity, allowing traders to swap tokens between different networks.

THORChain synthetic assets are primitives for both higher-order financial features, as well as fully-secured, fully-backed synthetic assets that can be sent anywhere in the Cosmos IBC ecosystem and they will always retain the guarantee they can be redeemed for the underlying. THORChain synthetics are unique in that they are 50% backed by their own asset, with the other 50% backing being provided by RUNE. This is achieved by using pool ownership to collateralise the synth, which ensures always-on liquidity and pricing.

In this dashboard we will leverage Thorchain data tables within Flipside's repository, specifically:

• thorchain.swaps
• thorchain.stake_events

Synthetic Assets are created by adding Rune to a pool (or swapping from an asset into RUNE, then adding that) for a synthetic asset of that pool. This is known as Minting.

The analysis time frame are the last 365 years.

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