How Does THORCHAIN Work? DEFI Explained

So what is Thorchain all about? How does it work? And how does it make it possible to swap between native assets across different blockchains? You’ll find answers to these questions in this video.
With billions of dollars in trading volume, decentralised exchanges have been gaining more and more traction. It’s not uncommon to see over $1B in daily trading volume on Uniswap alone.
Although protocols like Uniswap, Sushiswap or Curve are great when it comes to exchanging assets within the Ethereum ecosystem, they don’t support swaps between different blockchains.
To accommodate this problem, a common approach is to represent external assets in the form of wrapped or synthetic tokens on Ethereum. The most popular asset on other blockchains outside of Ethereum is of course Bitcoin. There are multiple ways of representing Bitcoin on Ethereum that allows it to be traded on decentralized exchanges. Wrapped Bitcoin, renBTC, sBTC to name a few.
Even though most of these approaches work fine, they usually make certain tradeoffs when it comes to either the custody or the security of the assets. If you want to learn more about it check out this video here.
What if there was a way of swapping native assets instead? For example, making a trade between Bitcoin on the Bitcoin blockchain and Ether on the Ethereum blockchain.
And this is exactly where Thorchain comes into play.
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[@Finematics]

❓ What do you think about ⚡Thorchain? Comment down below 👍 Hit the like button if you enjoyed this video 💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics 🐦 Follow Finematics on Twitter ► twitter.com/finematics 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/

[@wakematta]

You will explain pulsechain.com ?

[@Lolo-jq2df]

Finematics activates the subtitles so it lets me see it in Spanish

[@armageddonsports1386]

When Terra Luna video you promised weeks ago?

[@demirjyanilen2257]

Hello buddy, nice review heard about RAPTOR? Need to know your thoughts.

[@agoetz21]

Next video please... love all your videos... this is the best place to get info on the crypto system.

[@z3255032]

This is a better explanation than some of the Thorchain interviews 😂 u should just sell these videos to the project teams

[@Finematics]

hah thanks!

[@Shivtan]

@@Finematics please make a video on Solana Ecosystem

[@Lolo-jq2df]

@@Finematics Please could you talk about Ares Protocol? A decentralized oracle built with Substrate that will be a parachain in Polkadot and Kusama, is the only oracle in the Rococo tesnets and has the best technology to be the Polkadot chainlink. By the way, I love your content, excellent video

[@praszu]

Yeah just hire someone else to read this...

[@soulsearchingprojecx2833]

Seriously

[@wrlk636]

What an unbelievable amount of research you must have done. It's a wonder for anyone to be able to produce such high quality informative content!

[@Finematics]

Thank you! :)

[@Lolo-jq2df]

@@Finematics Finematics activates the subtitles so it lets me see it in Spanish please

[@lorizoli]

And with high quality animation too!

[@reszia]

I had the same thought. Just blown away by it.

[@Andrea-xq3qf]

My 60 year old brain only had to watch this twice. Thank you. Great work!

[@alexandergulgowski4603]

Excellent video. Thank so much

[@nickskywalker2568]

Thorchain definitely has its place in the top 10.

[@alexisgateau-begin2082]

Top 5 even

[@amiramnoamdoron]

top 50 ... there are better and more useful projects

[@brunisono9666]

more useful?? name 3

[@Proxy412ForToo0hh]

Excellent video as always. So much info packed into 20mins, you Sir have mastered the art. Looking forward to next episode. Cheers!

[@Finematics]

Thank you Sir! :)

[@miket4234]

the more i look into thorchain, the more i see it being a 100x crypto

[@dipeshsahota4901]

I think 50 to 90 usd is very realistic at some point once it's implemented

[@omarguerrero2814]

@@dipeshsahota4901 didnt aged well huh?

[@pitzalislen]

Detailed, yet understandable. Answered a few questions I had about the way Thorchain works. Thorchain is going to be a monster, it's so much better that the competition. Thanks Finematics, for a job well-done, and yes....I smashed the Like button and rang the bell!

[@Finematics]

thanks! :)

[@mcmerry2846]

A monster that worths almost $0

[@adrienharrison]

Nicely done. I think it deserves a part 2 to share a little more detail but excited for THORchain and RUNE nonetheless. Would be most interested in a video explaining what are the biggest missing pieces in DeFi, explaining what the use cases would be, and them explaining who/what organization is trying to solve it. In this case it was briefly mentioned that THORchain fills a big missing piece in DeFi because it solves the problem of not having native cross chain transactions. So having you explain what those other big missing pieces are would be interesting too

[@morgangrice6350]

A big one is that it enables native asset holders to generate yield in a non-custodial way. This is appealing to to those long term HODLer's who are sitting on dormant funds to put them to work without giving up key ownership and without KYC etc. Then there is the privacy coin integration side of things which make it all so appealing again. Thorchain is one of the most if not the most important crypto development of late. Very exciting stuff.

[@Rompelarueda]

@@morgangrice6350 absolutely the most important one for the time being.

[@tmtcapital7130]

@@morgangrice6350 but thorchain doesn’t offer lending products yet ?

[@chatjibpt]

@@tmtcapital7130it has now 😅

[@yvonh]

You're a brilliant learner and a brilliant teacher ! A double edge sword !

[@diyanslavov7401]

Thank you for the work you put in, it really helps people. I am sure you are in no shortage of ideas for videos, but something that I might find useful is to understand what sort of tools, tactics and websites you use to research a given product. I would really appreciate that. You are one of the few youtubers that actually provides in-depth analysis.

[@b00gi3]

This is an amazing series. Thank you for the introduction.

[@pierrevvr]

Great one as always bro!

[@nikolasologub1657]

Masterpiece! Very educational and objective! 👏👏👏 Thank you!!!

[@Finematics]

thanks!

[@iphgfqweio]

GIGA BULLISH!!!! thx cinematic

[@pcl5636]

Thanks so much man! love your vids

[@Finematics]

You're welcome. Thanks for watching! :)

[@drewfriestedt1832]

So glad you did this video!! Awesome job!

[@Finematics]

thanks!

[@agoetz21]

Been waiting two weeks for a new video. Thanks for this. Love all your videos. I now feel a lot smarter now. ....more input johnny 5 is alive...cant wait for the next one. 😃

[@cryptoanbu]

Best explanation!!! Love your vids

[@Finematics]

thank you! 💛

[@GoldenDragon1999]

Love your content bro, seriously!

[@Bravelycold]

Learned about thorchain thanks to your video, I have to read the papers but from the video this seems as an incredible project I will probably like to invest in. Thanks for the quality content!

[@cryptoaddict6715]

Amazing content!!! I will forever be a follower!! Thank you!!

[@Finematics]

Awesome! Thank you!

[@jameschoi5318]

You are one of the first sources I look to for crypto information. Thanks for the good video as always!

[@aiwen6942]

Amazing content. I agree with other comments suggesting the Thorchain team should just license this video 😃. It would be interesting to hear your take on how Thorchain compares to other cross-chain protocols. I'm thinking about Dfyn in particular, but maybe there's others as well.

[@christophersmith4976]

Most clearly explanation ever. Thank for your research and video. I save my time for discover all these projects. I'm you patreon 😉

[@Finematics]

Awesome, thank you!

[@MultiBenny68]

The BEST on KZbin. Simple

[@shamilrullah8917]

This man is superb, Thanks for thorchain explanation.

[@harvharry9099]

Much appreciated for the work you put in 🤗

[@Finematics]

thank you!

[@lochrandoherty9218]

This was extremely informative.

[@alexschneider7474]

Always learn something new when I come here!!

[@Finematics]

great to hear!

[@benediktmeuer7423]

Was waiting for that video :)

[@Ikilledthebanks]

Down day, your content made it better. Some of us are here for the tech and the gains.

[@Finematics]

thanks!

[@Mrbeastifed]

This channel is amazing. Have been a subscriber since 50K subs and that wasn't even that long ago.

[@guknj]

Nice!

[@Finematics]

Thanks!

[@juliegaribaldi]

I'm back in the lecture hall! But LOVING IT!

[@mdoerkse]

Very interesting and super informative, thank you!

[@chilltunes6209]

Love you videos finematics! Instantly liked and looking forward to more. I want to know more about Defichain, cosmos, sol, kusama, Ada, Theta, and anything you think is under the radar

[@Finematics]

Awesome! More to come :)

[@lherfel]

Great Video as always.

[@bkkavila8029]

I like the depth of the video at the same time if one wants only high level understanding that's also achieved by this video.

[@xrendezv0usx]

Great content man keep it up!!

[@Finematics]

thanks!

[@greentrades6120]

The best crypto youtuber for explanation. Thanks Finematics!

[@Finematics]

thanks!

[@sirnawaz]

Awesome explanation. Loved it. Could you also make a video on Injective Protocol?

[@Leoninmiami]

great video!!

[@dextermichaels7067]

Thank you for the great video! Can you do one on alternative DLT like Hedera Hashgraph?

[@SidharthMiddela]

Fantastic explanation

[@Finematics]

thanks!

[@Shah_Met]

Great video

[@Finematics]

Thanks!

[@omidrone1949]

Mate love your stuff! Double check 10:40 when you say 5000 nodes and write 50,000

[@Finematics]

Good catch! Should be 50,000

[@floater5850]

You are a good teacher🙂

[@Finematics]

thanks!

[@arnauds3161]

Really great illustrations and very informative :) I'm curious on how you create the drawings, what tools are you using for this ?

[@betatesports7480]

Doodley is cool

[@thorstenhirsch]

Can you explain TSS in more detail, please? How does it differ from MPC?

[@khangvutien2538]

Excellent informative video. 1. I wonder how the Thorchain team can remain anonymous if they started from a Binance hackathon? 2. It could be handy if people move massively out of a blockchain. I hope there is a stability mechanism.

[@aromax504]

Better than Netflix Prime

[@Finematics]

hah thanks!

[@mitch3990]

Ive learned more on this channel about crypto than anywhere else

[@Finematics]

great to hear!

[@mgratiel]

Love your content, could you look into Swingby? Seems a very advanced bridge solution similar to this.

[@timschierenbeck2758]

Thank you so much for your great work!

[@Finematics]

Thanks for watching! :)

[@donjuan3296]

Thorchain is a top 10 for sure.

[@MisterCylinder1]

Great video as usual. Cool that crosschain swaps are somehow possible, but it seems too complicated long-term. It will be much more efficient to trade and integrate everything into protocols on EVM compatible chains or layers.

[@TZVnt]

Maybe you find it too complicated to understand, but the protocol works just like uniswap.. You swap one token for the other, that’s it

[@lherfel]

thanks again : )

[@yshkol]

Thank you for a great video. i think the only thing missing here is how the $rune price simulator based on the TVL

[@kevinburke3941]

The amazing thing about this channel is that a lot of this information you cannot find anywhere else unless you do some serious digging

[@limvinc]

Love your videos. Can you cover DFYN?

[@Leonard22Bailey]

Great video. Would love to see you explore the Terra ecosystem, along with its suite of stablecoins and its Luna token.

[@toritsejuajuyah1499]

Love your explanations. It gives us a better understanding of blockchain industry. Can you please breakdown the difference between APY and APR? Thanks.

[@Finematics]

thanks! APY includes compounding and APR doesn't

[@mrigank8822]

Best crypto channel ever

[@Finematics]

Thanks!

[@johannesott3299]

I like video, explains it well and it's functions too. I tried use thorchain but as yet don't know how. After this video I will look it over again. Thank you. Q: on the usability of BTC Vs Eth, defi sector... Is it not likely that BTC market dominance should go down below 30%. Gold as BTC is compared to is relatively small in compare to the whole financial market. No?

[@florian1054]

Could you please make a video on how to use Harmony One ?

[@thecryptoaggregator2505]

Any chance of an explainer on the Terra ecosystem?

[@kelleclark4521]

Could you do a video on TEAL and Algorand? Binge-worthy videos!

[@juzkrej]

Thanks for the hard work and sharing this with us! How would this compare to other cross-bridging technologies? For example, Stargate Finance that is built on top of LayerZero? If you could do a similar type of video explaining Stargate Finance and another video of analysing the pros and cons between different cross-bridging technologies would really be great! I think 2022 could be the year of the cross-bridge and multibridge wars! (besides the stablecoin wars)

[@tcr333]

Thorchain is the future of money markets. Massive potential and in accumulating slowly

[@competitiveprogramming7766]

that some deep research

[@m.r.9493]

Excelent video!! Congrats! Do you think it is safe to provide liquidity on the thorchain with a big amount you can not afford to lose?

[@hermitvvv6031]

@@user-vc1uy1wt3c SCAM

[@overbet56]

Will the 1M Rune bonding requirement still hold when Thor goes -> main net? Also do you think it’s possible Uniswap or other primarily ERC-20 platforms develop the ability for cross chain swaps in the near future?

[@lucashunter4738]

truly huuuuge.... viva the revolution

[@CriptoWilly]

Thanks

[@CriptoWilly]

really

[@samgrg2632]

Finally I found a guy who really does research and speak.Not like 3 coins 3 millions😅

[@tylermoore4388]

If you could explain the Litentry cross chain aggregated identity project that’d be awesome

[@mooibro644]

have you produced video on Internet Computer? If not please. Thanks.

[@mooibro644]

@@user-vc1uy1wt3c OK Sir.

[@mhuberbreiten]

Best Crypto

[@rr.lt3]

Thank you Finematics, really love your clear explanations 👏👏👏 Thorchain is a future of crypto world ⚡⚡⚡

[@DonutMafter]

Can you make a video on Defichain? They make Defi on Bitcoin but I don’t quite understand it

[@Finematics]

Maybe, but there is a lot of other topics with higher priority at the moment

[@skinoxaesthetics1714]

Could you do a video on RAMP coin ;)

[@Hassaan911]

Can you make a video how Hydra Chain works? Thank you in advance.

[@XRaveTube]

Love these videos. What software do you use for the animation?

[@TheVictorfs10]

Videoscribe

[@RA-mh7tk]

Please do a video on how Harmony ONE scaling works, please 🙏

[@JB-ll8fp]

Can you plz do a video on ATOM or LUNA?

[@christopherdobrinski9669]

u should call the channel. Harvard Crypto.. great stuff

[@Finematics]

hah thanks!

[@tybvx.1505]

This channel is awesome!

[@Finematics]

Thanks!!

[@Shivtan]

Please make a video on Solana Ecosystem

[@NoTableNoFun]

$RUNE #RAISETHECAPS!

[@drakostreet]

Satoshi? Is that you behind Finematics?

[@Jesse-ly8nl]

Hi Finematics, I can't seem to find the official Discord server for ThorChain - could you please link it?

[@ksiadzgrzesiu69]

Next video about HBAR please how does it work? I don’t want to have comparison about that and blockchain because it’s always subjective. Maybe in the different video. Cheers bro

[@NotraNaum]

XHV is coming soon to Thorchain as well, their xUSD private stablecoin is gonna be a game changer.

[@morgangrice6350]

This

[@paktra6629]

You need to cover Chainflip and do a comparison between Thorchain and Chainflip.

[@mohamoudosman]

Your videos are awesome, can you make one on Wanchain, is the world's premiere decentralised blockchain interoperability solution!

[@mohamoudosman]

They have also have a layer 2 solution for Ethereum, and decentralized bridges to btc, eth,xrp,bsc,eos, soon dot,

[@aaronleviyahalom8538]

What the liquidity of thorchain?

[@Exparda1]

Does anyone know if RUNE concept is similar to ADA coin where they try to link all coins tgt?

[@sid1920]

ADA doesnt link all coins together though..

[@justwalk411]

Thorchain is the future! ⚡ Collect RUNE and move it to the moon! 🚀🌖