The integration of ATOM and THORChain Mainnet is now live for trading, marking a key milestone in achieving the multichain future. The integration bridges the Cosmos ecosystem to the native asset liquidity on THORChain.
ATOM can now be exchanged for various blockchains, including BTC, ETH, DOGE, BNB, LTC, and BCH. ATOM’s integration with THORChain Mainnet has been built on a common ground where both the partners share a goal of facilitating decentralization and interoperability. While THORChain aims to achieve an interoperable multichain future, Cosmos looks to implement Internet for Blockchains. Both the visions align closely with each other, strengthening the integration further.
Cosmos has an application-specific blockchain, making it an ecosystem where blockchains can communicate with each other through IBC, short for Inter-Blockchain Communication Protocol. Cosmos offloads decentralized applications on their blockchains to allow them to communicate.
The process not only frees up the block space and reduces the cost in terms of transaction fees. A total of 265 dApps and services are present in the Cosmos ecosystem. Some of them include Osmosis, Secret Network, and Juno Network.
ATOM is currently the staking token of the ecosystem. New blockchains will soon be able to use the Cosmos Hub for its security, adding more value to the staking token.
The integration has marked another successful completion of the roadmap driven by the community, sticking to the timeline to ensure that all goals are met with no delay. It has enabled IBC-enabled assets to connect to various native assets through THORChain.
Liquidity of over $2 million has been accumulated since the integration went live. A single L1 was an option. It could have been built at the earliest through ZK-Rollups; however, off-loading on their blockchains proved to be more efficient as it saves cost in transactions and enhances communication.
The update was shared with the community by THORChain, a settlement layer that facilitates swaps between seven chains, namely Ethereum, Bitcoin, Binance Chain, Litecoin, Dogecoin, and Bitcoin Cash.
Approximately $381.4 million is the registered Total Value Locked in the network, with a daily trading volume of $31.8 million. RUNE secures THORChain, the value accrued based on many assets deposited in the network. Anyone can use THORChain to swap the native assets between any supported chain.
The mission is to connect the crypto economy so users can move their assets throughout the economy without relying on a central intermediary. A feature that works well for THORChain is Impermanent Loss Protection.
Under that feature, THORChain protects the liquidity providers against impermanent loss after 100 days with no additional risk compared to holding both paired assets.
The custody of funds is always maintained by those who swap their assets, giving them full control, including directly from a hardware wallet. Funds of liquidity providers are secured by open source code while maintaining their solvency, visibility, and verifiability.