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RE: Testing THORChain Lending

in LeoFinance11 months ago (edited)

I didn't explain it very well in this one but I did in my other posts.

  • The collateral you send them is dumped for Rune.
  • This Rune is then destroyed.
  • Your loan is measured using an internal non-tradable stable-coin called TOR.
  • They note on their ledger that they owe you back X collateral (BTC.BTC or ETH.ETH).
  • When you pay back the TOR loan (using any token) they create Rune to pay you back.
  • The maximum amount of RUNE possible is 500M (circuit breaker).
  • Several mechanics in the Thorchain ecosystem burn Rune.

You do need to test it out yourself it will make more sense.