After THORChain launched a Ponzi-like lending mechanism in August last year, RUNE was destined to spiral upward in the context of a bull market/flooding liquidity:

Using RUNE as the transmission medium for the entire collateral lending process, it essentially uses "DEX (THORSwap) + Terra-like mechanism (RUNE-THOR stable currency module)" to complete the lending process:

The collateral (BTC) is first converted into RUNE on THORSwap, then minted into THOR through the RUNE-THOR stable currency module, and then THOR is converted into ETH to complete the process of lending ETH with BTC as collateral.

In this way, during the entire process, a large amount of RUNE will be minted into THOR due to borrowing needs, which means that as long as the amount of THORChain borrowing increases, RUNE will be destroyed in large quantities → push up the price of RUNE to achieve a "sustainable" improved version of LUNA/UST (RUNE/THOR ) Tiyunzong.

After the launch of THORChain lending on August 21, in less than 5 months, the total lending scale exceeded 40 million US dollars. Judging from the price performance of RUNE, it also exceeded 11 U from 1.6 U, an increase of 7 times~#rune #thorchain