RUNEPool
Deposit $RUNE to Earn $RUNE by providing liquidity paired with blue-chip asset pools
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Deposit $RUNE to Earn $RUNE by providing liquidity paired with blue-chip asset pools
Last updated
Was this helpful?
THORChain RUNEPool optimizes liquidity provision and yield generation for RUNE holders.
To put it simply: Users can deposit $RUNE to earn more $RUNE.
RUNEPool is a strategic feature of THORChain that enhances the liquidity of RUNE by distributing deposits across multiple Protocol Owned Liquidity (POL)-enabled pools. This approach not only diversifies risk but also maximizes yield potential.
When you deposit RUNE into RUNEPool, it gets distributed across various blue-chip asset pools, including BTC, ETH, BNB, AVAX, ATOM, BCH, LTC, DOGE, USDC, USDT and other major assets on the network. This diversification helps dampen the impact of impermanent loss while providing a stable yield.
Key Benefits of RUNEPool for Users:
Enhanced Yield Opportunities: RUNEPool participants earn yields from all enabled pools, benefiting from a wide range of asset price movements.
Reduced Impermanent Loss: Exposure to multiple assets in various pools mitigates the risk associated with impermanent loss typically seen in single pool dual LP positions.
Leverage Incentive Pendulum: Large RUNE holders can use RUNEPool to take advantage of THORChain’s , balancing the network’s economic state by switching between bonding and liquidity positions as needed.
RUNEPool operates in conjunction with THORChain’s (POL). When you enter RUNEPool, you effectively buy liquidity from POL, which then creates additional capacity for POL to deposit. This system allows your position to be exposed to multiple asset price fluctuations across various pools, providing a more stable and diversified yield vs a single dual LP.
Note, RUNEPool is different to (THORChain Savers Vaults). Your position will still experience Impermanent Loss (IL) as prices fluctuate — but less than a position in an individual pool with high IL, since a RUNEPool position is diversified. The claimable RUNE balance is variable with the prices on the network. Claimable RUNE amounts will change as prices change on the network.
Key Features and Considerations:
Minimum Duration: Initially, there’s a 30-day minimum deposit (lockup) period, based on the user’s last deposit. This period is adjustable through network parameters by THORChain Node Operators.
Caps: RUNEPool is capped by the amount of Protocol Owned Liquidity on the network.
Yield Generation: Participants earn yield from all enabled pools in the network.
Withdrawal: The claimable RUNE balance is variable and subject to price fluctuations (i.e. potential Impermanent Loss).
A 2% fee will be deducted from your RUNEPool withdrawal profit. No Fee is charged if you exit without profit. No fee is charged for depositing to the RUNEPool.