$RUNE could be one of the biggest gainers in the next bull cycle.

Why do you say that? Read on to find out. 👇

This topic is for learning reference only and does not constitute any investment advice!

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1、Thorchain

Thorchain is an L1 blockchain designed to meet the specific requirements of cross-chain liquidity and facilitate instant exchange between two blockchains.

Thorchain is known for its cross-chain swap capabilities, enabling seamless swaps between BTC and ETH.

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2、RUNE

RUNE is Thorchain’s native asset, and RUNE derives its value from assets stored on the Thorchain network.

For every $1 of non-$RUNE assets, liquidity providers deposit $3 worth of $RUNE in the liquidity pool, and anyone can deposit liquidity and receive rewards from trading fees.

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3. The Flywheel (Flywheel Effect) Earn rewards from node bond RUNE supply ➡️ (current APY: 15 %) ➡️ Liquidity providers deposit crypto assets (3:1) ratio ➡️ Earn transaction fee rewards (current APY: 15 %) ➡️ Increased demand for cross-chain swaps ➡️ Increased demand for Thorchain lending ➡️ Increased demand for $RUNE.

(Form a positive cycle)

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4. ThorFi - Lending Protocol ThorFi - The new lending protocol has been a hot topic in the past few days.​

It is unique in that it allows users to deposit native collateral (such as Bitcoin) and generate debt. Regardless of the assets, this debt is always expressed in U.S. dollars and is called TOR.

Here’s the kicker: All loans come with 0% interest, no liquidation, and no maturity date. You can also go short on the U.S. dollar and long on assets such as Bitcoin.

It’s safe to say that ThorFi lending will ultimately drive more demand for $RUNE, attracting more DeFi people on the lending platform.

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5. On-chain insights

◾️TVL（30D）：+15.62%

◾️Token volume (30D): +72.41%

◾️Staking（30D）：+54.21%

6. Potential long-term risks of $RUNE

If you understand the $Luna/$ust destruction/minting mechanism, you will understand. $RUNE's lending plan is similar, but the details have been optimized and can essentially be understood as a perpetual call option.

For example: an investor deposits 750 $BTC (30,000 USD) through the loan program. 15 million $RUNE ($1.5) was burned - this will definitely affect the short-term price trend (upward). On the contrary, when redeeming, you also need to mint and sell $RUNE or stablecoin USD to exchange for the $BTC deposited by investors through loans. (fall)

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7. Conclusion Due to the economic design of $RUNE, as long as the demand for borrowing continues to increase, its deterministic price set at 3 times the market price will also increase. This dynamic will intensify as the market becomes aware of $RUNE.

There is some risk, but it also comes with huge gains, but this death spiral doesn't have to happen. I invested a bit of $Rune myself (albeit a small percentage of my net worth), but I hope for the best. As a result, be prepared for the worst as well.

I hope this topic is helpful to you, 🙏Thank you for your likes and support👍