The price of THORChain native token RUNE rose 34%. This rise is attributed to the activation of synthetic assets in the network. Crypto synthetic assets are known as derivative tokens of other digital assets pegged to the value of the underlying collateralized asset such as Bitcoin (BTC) or Ether (ETH).
In the case of THORChain, the project chooses to support half the underlying assets and the other half synthetic assets in RUNE. Earlier today, synth activation went live; As a result, synthetic crypto assets such as sBTC and sETH are now available to trade on the network.
THORSwap Finance pointed out the advantages of synthetic assets in its blog post. “It has greatly benefited investors and arbitrageurs as real-time and low-cost transactions can be made compared to local first-tier transactions,” the article states.
"With the safes to be created in the future, it will be possible to generate returns on synthetic assets and produce THORFi solutions through THORChads"
THORChain core developer Chad Barraford noted the importance of newly launched synthetic assets via Twitter earlier today and suggested that transaction volume on the network could increase.
THORChain is a decentralized liquidity protocol that allows users to easily exchange their cryptocurrencies between various networks, without losing ownership of their assets in the process. Thanks to THORChain, users can exchange their holdings with other assets in a permissionless environment without having to rely on order books to provide liquidity.
According to the statement made by the official representative of THORChain, the platform has no CEO, founder and manager. Instead, development of the platform is organized through Gitlab. On top of that, the people working on the project remain largely anonymous. The official representative of THORChain states that this secrecy is preferred to "protect the project and ensure decentralization."