What is THORChain and how does it work?

THORChain is a blockchain whose main job is swapping coins between different blockchains in one step, for example bitcoin on the Bitcoin network for ether on Ethereum. Users get the real coin on the destination chain, not a wrapped copy. RUNE, its native token, sits at the center of every trade.

What does THORChain do?

THORChain describes itself as a layer 1 blockchain and decentralized exchange for cross-chain swaps that needs no account or KYC. As of October 2026, its docs list connected chains including Bitcoin, Ethereum, BNB Smart Chain, XRP Ledger, Solana, Tron, Zcash, Dogecoin, Bitcoin Cash, Litecoin, Avalanche, Base and Cosmos Hub, plus several stablecoin pools. The docs note that individual chains are sometimes paused.

Most cross-chain tools are bridges that lock a coin and issue a stand-in token. THORChain works differently. It holds real coins in vaults on each connected chain and pays out native assets from them.

How do THORChain cross-chain swaps work?

Each pool pairs one asset with RUNE, such as BTC and RUNE or ETH and RUNE. Because RUNE is in every pool, the pools form one connected network of liquidity, similar in spirit to an automated market maker.

A BTC to ETH swap runs as a double swap:

1. You send BTC to a THORChain vault address and pay Bitcoin network fees.
2. The BTC pool swaps it into RUNE.
3. That RUNE goes into the ETH pool and comes out as ETH.
4. A vault sends the ETH to your wallet, with the outbound fee taken in ETH.

THORChain's docs say swaps typically confirm in about 5 to 10 seconds. Larger swaps move the pool price more, so they face more slippage, and that extra cost goes to liquidity providers.

What is the THORChain RUNE token used for?

RUNE does four jobs, according to THORChain's docs. It is the settlement asset for all swaps. It is half of every liquidity pool. It is the security bond for validators, who must lock more than 300,000 RUNE to become active. And validators and liquidity providers are paid in RUNE from network fees.

Vaults are controlled with a threshold signature scheme, where each validator holds only a fragment of the key and a supermajority must cooperate to sign. If a validator tries to steal funds, its bond can be slashed. The network aims for total bonded RUNE to be worth about twice the non-RUNE assets in pools, and validators rotate on a regular cycle so no fixed group stays in control.

What happened to THORFi and what is TCY?

THORChain once offered lending and savings products called THORFi. On January 23, 2025, these were suspended, leaving about $210 million of debt that could not be repaid. A community proposal converted each $1 of that debt into 1 TCY token, with a fixed supply of 210 million. TCY stakers receive 10% of system income, paid in RUNE. TCY carries no voting rights, and the docs state that recovery of the original value is not guaranteed.

For pool basics, see what is a DEX.