Introduction

What is Thorchain?

Thorchain, which is built on the Cosmos blockchain, is a decentralized liquidity protocol that specializes in cross-chain connectivity. Thorchian allows traders to swap tokens between different networks. The native token of the Thorchain blockchian is RUNE all liquidity pools on Thorchain are RUNE - (L1 asset) pools. To be a validator on the Thorchain network a validator needs to post a bond of millions of dollars worth of RUNE. The value of the RUNE bonded by validators remains higher than the value of the assets held on the network to ensure aligned incentives with the liquidity providers.

How does Upgrading RUNE Work?

Upgrading is rune is the proses of buring ETH.RUNE or BNB.RUNE to mint Native rune on the Thorchain blockchain.

Methodology

We will look at the amount of RUNE upgraded over time from BNB and ETH and we are looking to see a change in the amount of rune being upgraded.

RUNE Upgrade Metrics

Conclusion

Since the start to 2022 there has been two huge spikes in the upgrading of RUNE from BNB/ETH to Native these spikes occurred in january and June of 2021 and both times over 50 Million RUNE was upgraded in a single day which at current price is over $100 Million. Only a very small percentage of the RUNE upgraded was ERC20.