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RE: Testing THORChain Lending

in LeoFinance • 9 months ago

They'd just rather keep my ETH or BTC I am sure. I'm just trying to figure out what a typical move would look like. So you don't get your collateral back as the same token? You get it back as RUNE? Maybe I should just go play around with the platform a bit and see if having eyes on it makes more sense!

9 months ago in LeoFinance by
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     9 months ago (edited) 

    I didn't explain it very well in this one but I did in my other posts.

    • The collateral you send them is dumped for Rune.
    • This Rune is then destroyed.
    • Your loan is measured using an internal non-tradable stable-coin called TOR.
    • They note on their ledger that they owe you back X collateral (BTC.BTC or ETH.ETH).
    • When you pay back the TOR loan (using any token) they create Rune to pay you back.
    • The maximum amount of RUNE possible is 500M (circuit breaker).
    • Several mechanics in the Thorchain ecosystem burn Rune.

    You do need to test it out yourself it will make more sense.