Step into the captivating world of “Crypto Insights,” an illuminating blog series brought to you by Venionaire’s pioneering Tigris Web3 team. Venture into the frontiers of the Web3 landscape and decentralized finance (DeFi). We unveil the freshest blockchain innovations and unveil the hidden treasures nestled within the heart of the Tigris Web3 fund portfolio.
THORChain’s Streaming Swaps: A DeFi Revolution
Welcome to another enlightening edition of “Crypto Insights,” an illuminating series brought to you by Venionaire’s Tigris Web3 team. In this edition, we’ll delve into the thrilling realm of the Web3 space, shedding light on the groundbreaking blockchain innovations that are shaping the future of finance. Today, we’re excited to unravel the captivating stories of two prominent players in our Tigris Web3 fund portfolio: THORChain and THORSwap. These dynamic entities have ignited the crypto realm with surging trading volumes, propelling their native tokens to remarkable heights. As these projects continue to garner attention with soaring trading volumes and noteworthy price movements, let’s journey into their worlds and unveil the reasons behind their success.
Tackling DeFi Challenges
Decentralized Finance (DeFi) in general offers many advantages over Centralized Finance (CeFi). However, one of its major problems since its inception has been operational and technical risks. Those risks relate to a variety of wrappers, bridges, and smart contracts necessary. These are needed due to a lack of native cross-chain interoperability and multiple inefficiencies. These inefficiencies arise due to high trading fees, transactional costs, and high slippage because of shallow liquidity. As a result, larger traders and funds like us rely more on Centralized Exchanges, Brokers, and OTC trades than we as DeFi and Web3 “natives” would prefer.
At Venionaire, we’re dedicated to harnessing the potential of DeFi, and in our quest for optimal swap paths, we’ve immersed ourselves in a myriad of Decentralized Exchanges. Among these, THORChain and THORSwap stand tall, embodying the innovation and efficiency we believe in. In the vast expanse of the Web3 universe, THORChain and THORSwap have emerged as shining stars. These dynamic technologies have gained significant momentum within our Tigris Web3 fund portfolio. That makes them more than just investments – they’re a testament to our foresight and believe in this revolutionary landscape.
THORChain’s Galactic Rise
THORChain, a pivotal component of our portfolio, has captured the attention of many as it introduces a decentralized paradigm shift to finance (DeFi). Besides the capital efficiency of THORChain due to its Continuous Liquidity Pool model and its strong tokenomics, which creates natural demand for RUNE, THORChains native token, we were equally bullish on the planned development Roadmap. One of these planned features recently hit the ground running, secretly revolutionizing Decentralized Finance. Addiitonally, it led to a small (but at this stage probably temporary) bull run for both RUNE and THOR tokens.
Powered by cutting-edge blockchain technology, THORChain disrupts traditional financial models by enabling and facilitating direct peer-to-peer interactions. Its decentralization empowers users to transact autonomously, bypassing intermediaries and fostering transparency. In simple terms, it enables users to engage in financial activities without relying on intermediaries like banks. This DeFi approach unlocks unprecedented opportunities for users to take control of their financial autonomy and foster transparency. Our investment in THORChain aligns seamlessly with our ideals of autonomy and transparency, amplifying our enthusiasm for its growth. As of now, THORChain stands at a remarkable +55%. While we are acutely aware of the pronounced volatility inherent in the crypto sector, we are fortunate to have seasoned experts within our team adept at navigating these fluctuations.
THORSwap’s Ascension in the Crypto Realm
In the symphony of DeFi and complementing THORChain’s ascendancy, we find THORSwap. This is an essential and harmonious counterpart in our Tigris Web3 fund portfolio. THORSwap contributes to the DeFi ecosystem by providing a platform for seamless asset swapping. Unlike before, where a single swap had to meet all liquidity needs at once, streaming enables the distribution of liquidity needs across multiple moments. This allowes arbitrageurs to rectify prices during the swap. It leads to more precise price execution with much lower slippage. Simultaneously, it circumvents multiple in- and outbound chain gas fees from splitting into several manual transactions.
Imagine being able to trade various tokens effortlessly, all while enjoying the security and efficiency of blockchain technology. This innovative approach not only enhances convenience but also empowers users to participate in a borderless global financial landscape.
Why We’re Enthusiastic About These Technologies
Our unwavering belief in the Web3 revolution for sure drives our investment choices. THORChain and THORSwap embody our commitment to autonomy, transparency, and innovation and contribute to enabling users taking over control. With these technologies users can modify sub-swaps over time using two parameters, based on their intent of either price or time optimization:
- Swap Interval: This determines the time gap between sub-swaps. It is measured in THORChain blocks, each approximately 6 seconds long. This interval allows arbitrage opportunities between sub-swaps, keeping pools continuously balanced. This prevents capital shortages during swaps.
- Swap Count: Users can specify how many sub-swaps should occur within the original swap amount. More sub-swaps result in smaller swap sizes for each leg, minimizing slippage in each sub-swap.
This approach enhances THORChain’s capital efficiency without altering Total Value Locked (TVL). For instance, a Streaming Swap with a count of 10 makes the sub-swap/pool ratio ten times better than a single large swap, effectively enlarging the pool’s appearance. Similarly, a Streaming Swap with a count of 100 makes the pool seem a hundred times larger.
Unlocking High-Volume Trades and Cost Savings
Streaming Swaps facilitate larger trades on THORChain and allow substantial traders to pay as low as 5 basis points in liquidity fees. That makes THORChain more appealing for sizable on-chain trades. This change aims to attract a broader user base, particularly those trading over $100k. Trades with $1m plus in value were completed within 2 hours, with lower transaction costs compared to major Centralized Exchanges. As fund managers, we’re thrilled to attest that this groundbreaking feature seamlessly enhances our operations on-chain. It liberates us from reliance on external intermediaries, and concurrently unlocking substantial cost savings.
As passionate advocates of the Web3 revolution, it’s no surprise that we’re invested in these groundbreaking technologies. THORChain and THORSwap mirror the ideals we hold dear – autonomy, transparency, and innovation. By investing in projects that align with these values, we contribute to the transformation of traditional finance into a more accessible, efficient, and decentralized system. As these projects flourish, they reinforce our dedication to transforming traditional finance into a more accessible, efficient, and decentralized entity.
Increased Volume proving early product-market fit
We are not the only ones happy to use Streaming Swaps. Presently, fees surpass block rewards, highlighting THORChain’s increased activity. Introducing Streaming Swaps strategically attracts users who typically trade larger amounts, securing THORChain’s position as a leading swap route. The main direct DEX and User Interface built on THORChain, THORSwap saw a massive increase in Trading Volume as well as revenue generated. THORSwap’s native token THOR was able to capitalize on that with a price increase of roughly 300% since the introduction of the Streaming Swap feature. With an innovative lending product lurking around the corner, we stay bullish, and we stay invested in both THORChain (RUNE) and THORSwap (THOR).
Embracing the Future
Our journey exemplifies the commitment to exploring, understanding, and investing in the future of finance. These technologies are more than just financial assets. They embody a movement that challenges the status quo and embraces the potential of decentralized systems. Our involvement with these projects reflects our dedication to pushing the boundaries of what’s possible in the ever-evolving Web3 landscape.
Our Tigris Web3 fund portfolio stands as a testament to our unwavering dedication to progress, innovation, and transformative change. Join “Crypto Insights” again for more exciting revelations from the world of Web3, where possibilities are endless, and the future is now. If you are interested in learning more about our other portfolio investments, our strategy, and the Tigris Web3 Fund in general, contact us at email@example.com.