ThorChain Pauses ThorFi Savers and Lending Programs for 12 Months
ThorChain has announced a 12-month pause of its THORFi Savers and Lending programs after discussions with community stakeholders. This decision aims to address volatility caused by un-throttled redemptions, hindering progress on the 2025 roadmap.
Key points include:
- ThorChain enables cross-chain asset swaps without wrapped tokens or centralized exchanges, using RUNE for transactions.
- The protocol is undergoing restructuring to enhance security and user experience.
- Inflation of RUNE’s supply and poor price action stem from mechanisms like validator rewards and the Savers program, which creates sell pressure upon user withdrawals.
- The plan includes a 72-hour discussion period followed by a six-month timeout for further economic changes.
- After six months, there are plans to tokenize lending and saver positions for early liquidity and present a restructuring plan for legacy holders.
Community members are debating more aggressive measures, such as forcing the closure of outstanding loans to mitigate risks associated with underperforming RUNE and inflated supply. The ThorChain team must navigate these challenges while maintaining stakeholder support.