THOR has proven itself worthy here on Earth in the latest bull run.
However, instead of coming down to earth from outer space,
THORChain and the RUNE token is headed on a rocket straight to the bright side of the crypto moon.
THOR is proving itself worthy to yield farmers and across virtual meetups everywhere.
It has come to save DeFi's liquidity issue.
And today, I'm going to tell you how.
Let's get it!
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Welcome to BitBoy Crypto! The largest crypto channel on all the Interwebs.
My name is Ben.
Everyday on this channel, I show you how to make money in crypto.
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If you're interested in THORChain, you can find it on Binance.com.
You can check out Binance by visiting the Binance.com link on bitboycrypto.com/deals.
In today's video, we're going to explore how THORChain is helping solve one of the largest issues
in the now over $40 billion DeFi market.
One of the major pain points facing decentralized exchanges is they do not have sufficient liquidity.
What this means is they don't have enough on the books
to supply the necessary funds on a transaction.
On a stock exchange, if you sell this much stock,
the exchange has to have a certain amount of cash to execute the sale.
There's a paradox.
You have the traders frequenting exchanges where they don't lose value due to slippage,
yet the same exact traders provide the liquidity in the first place to prevent the slippage.
As an answer to this issue,
THORChain is creating a continuous liquidity pool
where assets are available that grant traders the opportunity to access liquidity
without the need to find another buyer or seller.
This minimizes slippage and thus makes traders happy.
As slippage is minimized, yield farmers will get the price they expect.
To remember slippage, think of it like this.
If it's cold and icy in the morning when the yield farmers are out there milking the DeFi cows,
they want to minimize their slippage.
The liquidity issue is what THORChain is helping to solve.
But what is slippage?
Say you're patiently waiting for ETH to rally into a bull run like you're a good little HODLer.
You search ETH prices to find it has a current spread of $1,950.15 to $1,950.20.
You put in your ETH order and anticipate it to be filled at $1,950.20.
Volatility induces sudden market swings in the few seconds before the exchange is over,
leaving your estimate to be incorrect.
The price you currently receive is $1,950.20 and the slippage is 10 cents.
It's a discrepancy between the estimated price and the price you expected 10 cents cheaper.
Remember though,
farmers want low slippage.
The variety of transactions in the digital asset economy only further complicates the confusing existence of slippage.
As each has its own specific set of laws to work by,
slippage differs on each trade.
While an exchange has an unlimited amount of liquidity,
it's easy to fulfill percentages of the order until greater rates are added to your order.
So what makes THORChain so uniquely positioned to solve one of DeFi's biggest issues?
What's super cool about THORChain and the RUNE token is that for it to be successful,
other tokens have to be as successful too.
That's right, this type of mechanism promotes a spirit of community
that's not common in crypto.
Sometimes, there can be a maximalist attitude in certain camps though.
Bitcoin
But the truth of the matter is that, in crypto, there's enough of the moon pie to share with everybody.
It's actually the point of DeFi,
opening access to financial markets for everyone.
THORChain relies on the success of everyone as it provides a universal solution to DeFi slippage issue.
That was at the core of why THORChain was created in the first place.
It's becoming DeFi's go-to for cross-chain liquidity.
So far, the project has finished its integration with BTC.
Now, it's moving on to Ethereum.
Then it will move to provide cross-chain liquidity for other projects like Solana, Polkadot
and, we're seeing now, Binance Smart Chain.
By the way, if you haven't already watched my video about Polkadot and why it could 13X soon,
you can do that by clicking above.
Going back to THORChain,
these guys have been attacking these issue for several years now.
In 2018, the THORChain project was built on the assumption
that there was a weakness in the usage of centralized exchanges
to move crypto assets between separate blockchains.
The long-term remedy was to provide noncustodial markets better known as decentralized exchanges.
The THORChain team then set out to create an autonomous blockchain
like a bridge to external networks and thereby allow cross-chain transactions
similarly to a DEX.
When 2021 rolls on and DeFI becomes even more mainstream,
we shall see if THOR is able to carry it even further.
DeFi farmers and now mainstream investors alike
are going to want to save every single dollar they can in crypto.
There will especially be some penny-pinching come tax season.
More on tax season tomorrow.
Saving on the price of trades will be music to the ears of crypto enthusiasts everywhere.
So, what's the potential for the project in terms of its price?
Well, the RUNE token has definitely exploded recently and gone parabolic,
then there does have to be a pullback at some point.
But I still do believe there is upside of it to go this year.
I definitely think RUNE can easily get to $25 per token at some point in 2021,
most likely around October.
So that's it for this video.
What do you think?
Will THORChain unite all of DeFi and the entire digital asset economy
with a solution for the age-old slippage issue?
Will RUNE skyrocket in value while providing more accurate buy orders for DeFi farmers?
Make sure to drop those comments down below and your price predictions.
That's all I got.
Be blessed.
BitBoy out.