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Alisa Davidson
Published: December 23, 2024 at 2:09 am Updated: December 23, 2024 at 2:09 am
Edited and fact-checked:
December 23, 2024 at 2:09 am
In Brief
THORChain’s V3 update introduces smart contract functionality, Cosmos ecosystem advancements, and IBC compatibility, enabling innovation, risk mitigation, and cost-effective cross-chain integration.
Decentralized liquidity network, THORChain announced the launch of its V3 update, introducing changes and unveiling new opportunities for future growth.
This update brings THORChain in line with the latest advancements in the Cosmos ecosystem. Notably, the integration of smart contract functionality—now supporting the CosmWasm module—enables developers to create and deploy smart contracts directly within the network. This fosters innovation within smart contracts while also mitigating associated risks by compartmentalizing them. Additionally, the update paves the way for compatibility with the Inter-Blockchain Communication (IBC) protocol. By enabling THORChain to monitor IBC-compatible chains through Bifrost, it becomes more cost-effective to incorporate new chains.
Another key enhancement stems from the adoption of Cosmos SDK v0.50. THORChain has transitioned its consensus layer from Tendermint to CometBFT, bringing improvements in performance, security, and scalability to its consensus mechanism. Furthermore, the inclusion of Cosmos’ standard MsgSend functionality facilitates smoother integration with the broader Cosmos ecosystem.
How V3 Is Set To Transform THORChain?
The Rujira App Layer stands as a cornerstone feature of THORChain’s V3 update, emerging from the integration of prominent decentralized finance (DeFi) projects—Kujira, Levana, Fuzion, Unstake, and Wink—under the Rujira Alliance. This strategic collaboration combines previously fragmented DeFi tools into a unified ecosystem, allowing developers to create decentralized applications directly utilizing THORChain’s liquidity pools.
This integration unlocks a wide array of decentralized finance DeFi offerings, including order books, perpetual futures, non-fungible tokens (NFTs), launchpads, money markets, and a liquidation platform—all of which operate on THORChain’s foundational layer. By incorporating CosmWasm support, developers gain the ability to deploy sophisticated and high-performance smart contracts, fostering greater functionality, innovation, and composability. These smart contracts from the Rujira Alliance will gradually be transitioned and implemented on THORChain, with rollouts planned for Q1 and Q2 of 2025.
The Rujira App Layer also offers a flexible deployment environment that will progressively evolve into a more permissionless framework. This ensures scalable and user-friendly application development for diverse use cases. Developers will have access to an extensive design system, declarative data handling, and chain abstraction, streamlining the building process.
Furthermore, in terms of economic impact, the Rujira App Layer is designed to share 50% of the fees it generates with THORChain, thereby contributing to THORChain’s overall revenue. Additionally, because the Rujira layer relies on THORChain’s base layer pools, it is expected to drive increased swap volumes within those pools, enhancing overall ecosystem activity.
THORChain is a decentralized cross-chain liquidity protocol that leverages the Tendermint consensus engine, the Cosmos-SDK state machine, and the GG20 Threshold Signature Scheme (TSS). Functioning as an independent Layer 1 decentralized exchange (DEX), THORChain is built on the Cosmos SDK and designed to facilitate seamless cross-chain transactions.
Over the past three years, THORChain has experienced consistent growth, establishing itself as a foundational infrastructure for decentralized swaps. It has been integrated into widely used platforms such as Ledger Live, Trust Wallet, and OKX, showcasing its utility and reliability. The protocol has also begun deploying its originally envisioned THORFi features, including synthetics, savers, and lending, achieving significant traction and success in these areas.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
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