Thorchain, a decentralized cross-chain liquidity protocol, has announced a new feature called Streaming Swap, which allows users to swap assets across different blockchains without waiting for confirmation times. According to Thorchain, this is the first time such a feature has been implemented in the crypto space, and it could revolutionize the way people trade and exchange cryptocurrencies.
Streaming Swap works by allowing users to lock up their assets in a smart contract and specify the swap rate, duration, and frequency of the swap. For example, a user can lock up 10 ETH and swap it to BTC at a rate of 0.1 ETH per BTC every week for 10 weeks. The user will receive 0.1 BTC every week until the swap is completed or canceled.
The benefits of Streaming Swap are manifold. First, it reduces the risk of price volatility and slippage by averaging out the swap price over time. Second, it eliminates the need for users to monitor the market and execute swaps manually. Third, it creates new opportunities for arbitrage and liquidity provision by allowing users to stream their assets to different pools and chains.
Thorchain claims that Streaming Swap is the first of its kind in the crypto space and that it will open up new possibilities for decentralized finance. The feature is currently live on the Thorchain testnet and will be deployed to the mainnet soon. Users can try out Streaming Swap using the ThorSwap interface or the Asgardex desktop app.
Streaming Swap works by using Thorchain’s native RUNE token as a bridge between different blockchains. Users can deposit any supported asset into Thorchain’s liquidity pools and receive RUNE tokens in return. Then, they can use these RUNE tokens to swap for any other supported asset on any other blockchain, without having to wait for the confirmation of the first swap. The second swap is executed instantly, and the user receives the desired asset in their wallet.
Thorchain claims that Streaming Swap has several advantages over traditional swaps. First, it reduces the latency and risk of swapping assets across different blockchains, as users do not have to wait for multiple confirmations or deal with network congestion. Second, it increases the liquidity and efficiency of Thorchain’s pools, as users can access any asset on any chain with a single swap. Third, it enables new use cases and opportunities for traders and arbitrageurs, as they can take advantage of price differences and market movements across different chains.
Thorchain says that Streaming Swap is currently live on its Chaosnet, a public testnet that simulates real-world conditions and incentives. Users can try out the feature using various assets such as Bitcoin, Ethereum, Binance Coin, Litecoin, Bitcoin Cash, and more. Thorchain plans to launch Streaming Swap on its mainnet in the near future, after ensuring its security and stability.
Thorchain is one of the leading projects in the cross-chain space, aiming to create a decentralized and trustless network that connects all blockchains and enables seamless value transfer. Thorchain leverages a novel consensus mechanism called Threshold Signature Scheme (TSS), which allows nodes to sign transactions without revealing their private keys or compromising security. Thorchain also uses a unique economic model that rewards liquidity providers with fees and incentives, while penalizing malicious actors with slashing and bonding mechanisms.
Streaming Swap is a major milestone for Thorchain and the crypto space as a whole, as it demonstrates the potential of cross-chain technology and innovation. Thorchain invites users to test out Streaming Swap on its Chaosnet and provide feedback and suggestions for improvement.