Category: NFT News

Thorchain Loans Spike With Weekly Flows Of $100M

By Published On: March 19, 20243.2 min readViews: 1680 Comments on Thorchain Loans Spike With Weekly Flows Of $100M

Lending on the decentralized liquidity protocol has skyrocketed more than threefold in the past week.

Traders are rushing to take out zero-interest loans on Thorchain after the cross-chain liquidity protocol lifted its collateral limit.

There is now $120 million in ETH and BTC collateral on the protocol, compared with $36 million before the cap was lifted.

On March 8, Thorchain announced it would burn 60 million of the protocol’s native RUNE token, worth $500 million at today’s price. The move opened up an additional $160 million worth of collateral capacity for ETH and BTC — or roughly 2,000 BTC and 36,000 ETH.

Investors have deposited 1,005 BTC (or $67.3 million), up from 400 BTC on March 8, according to NineRealms, an institutional liquidity protocol for Thorchain. Meanwhile, there is now 15,279 ETH (approximately $53 million) locked up for loans, a 400% increase.