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THORChain Savers Vaults update: As of January 24th, 2025 THORChain Node Operators have voted to temporarily pause Savers operations (deposits and withdrawal) - more information here:
Following the default of the THORFi Lending and Savers (Earn) products in 2025, THORChain protocol has undertaken a multi-phase effort to restructure and resolve outstanding claims. For more context, please see: article and .
Previously, in order to earn yield on THORSwap, one must provide Liquidity to THORChain pools consisting of 50:50 Asset:RUNE.
By leveraging Savers Vaults, Earn allows users to deposit single side liquidity without the risk of Impermanent Loss and no exposure to $RUNE. Quite simply: deposit your idle assets and receive passive income.
Earn yield is powered by THORChain liquidity pools. Unlike a traditional liquidity deposit, you’re only taking the asset side, without exposure to $RUNE or impermanent loss. Traditionally, liquidity providers receive rewards each time assets are traded between the THORChain pools they are supplying liquidity. i.e. LP’s who supply BTC/RUNE receive rewards any time BTC is swapped to/from via THORChain.
In the case of Earn:
The BTC deposit is swapped to RUNE, and the RUNE is deposited in the pool to mint the synthetic BTC.
The synthetic BTC is backed by the liquidity pool and redeemable 1-to-1. This synthetic asset, representing a piece of the liquidity pool, earns a share of the yield that the pool generates from swaps. By taking on just the single side, the regular Asset:RUNE LPers take on extra price risk to RUNE and guarantee the redemption of the synths.
The earnings liquidity pools generate are split accordingly. The pool earnings reward the THORSwap Earn (single side) Saver with approximately 50% of what the dual-sided (Asset:RUNE) liquidity provider earns.
Your Earn deposit can be withdrawn at any time with no penalty. There is a slippage swap fee on entering and exiting, from the swaps to mint or burn your synthetic asset.
On withdraw, the process is reversed. Your synthetic asset is burned, and the equivalent claim on your native asset is withdrawn from the liquidity pool.
Note: Users have to pay slip fees when entering or leaving a savers vault. Large transactions in shallow pools will incur larger fees to save/withdraw.
is the new simple way to earn yield on your native crypto assets.
Your BTC goes into the liquidity pool to mint a which is 1-to-1 redeemable for native BTC.
To learn more about the potential risks associated with Earn (Savers Vaults), dive into this article:
Grassroots Crypto Full Mechanics Explanation-
Risk Analysis:
Earn native yield with THORChain Savers Vaults with no additional asset exposure or impermanent loss.