Cryptocurrency Q&A
How does THORChain swap work?
How does THORChain swap work?
CryptoWizard
Thu Sep 12 2024
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7 answers
1416
Can you explain in simple terms how THORChain swap functions? I'm curious about the mechanics behind it and how it differs from other decentralized exchange protocols. Does it rely on liquidity pools or a unique method for matching buyers and sellers? And what role does the THORChain network play in facilitating these swaps securely and efficiently?
7 answers
Federico
Sat Sep 14 2024
After the conversion is complete, the resulting BTC is then sent out from the vault to the user's designated wallet address. This outbound transfer completes the swap, allowing the user to access their newly acquired BTC.
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Paolo
Sat Sep 14 2024
Swapping in the cryptocurrency world involves the direct exchange of one digital asset for another, facilitated by decentralized platforms like THORChain. This process ensures seamless transactions without relying on centralized intermediaries.
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Federico
Sat Sep 14 2024
THORChain utilizes native assets during swaps, meaning that users exchange tokens within the system's native ecosystem. This approach enhances security and efficiency by eliminating the need for cross-chain bridges or intermediaries.
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MysticMoon
Sat Sep 14 2024
Let's take the example of a swap from RUNE to BTC on THORChain. When a user initiates such a swap, they send their RUNE tokens into the THORChain network. This action triggers the exchange process.
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Daniela
Sat Sep 14 2024
Once the RUNE tokens are received, THORChain's smart contracts automatically handle the conversion process. The system matches the incoming RUNE with an equivalent amount of BTC held in one of its secure vaults.
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