Introduction to THORFinance (THORFi)

What Is THORFi?

THOR.USD/THOR.RUNE Minting and Burning Mechanism

THOR.RUNE (Native RUNE) must be burned to mint the algorithmic stablecoin, THOR.USD and vice versa: THOR.USD must be burned to mint THOR.RUNE. THOR.USD is backed by the liquidity of THOR.RUNE ensuring a 1:1 liquidity exchange for USD at all times.
The anchor price of 1 THOR.USD is determined by the median of the stablecoin pools — USDT, USDC, BUSD, and UST — within THORChain. There is a slip-based fee for minting and redeeming THOR.USD to prevent attack vectors and help to meter demand.
There are no LPs in the THOR.USD/THOR.RUNE pool. It is a virtual pool that exists to determine the mint/burn pricing and to allocate the swap fees that are collected to the THOR.USD Savings Vault.

Borrowing:

Collateralization Ratio (CR):

Debt

No Liquidations for Loans:

2 Different LP Collateral Types:

THORSavings Interest Accounts Vaults

2. Blue-Chip Savings:

As more users enter THORSavings vaults to earn interest on their assets, this burns $RUNE supply.🔥

Incentive Pendulum:

Net Effect of THORFi on RUNE Supply:

As utilization of THORFi increases, RUNE supply will continue to be burnt causing RUNE to become net deflationary. The THORChain tokenomics design continues to capture the value of quality L1 assets in combination with THORFi’s burning of RUNE’s supply. Ultimate value accrual. ⚡️

Resources:

LP University aims to educate users on how to optimally engage with the @THORChain Network

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LP University

LP University

LP University aims to educate users on how to optimally engage with the @THORChain Network

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