LPU THORChain Updates (Jul 2023)

In this series, LPU aims to give regular condensed “state of THORChain” updates. Enjoy!

1. Best Effort Refunds for Deposits into Retired Asgard Vaults

On 2-Jul, a refund was executed, on a best effort basis, for a deposit Tx sent to a retired Asgard Vault: https://viewblock.io/thorchain/tx/A899361FBCA7B37BBDD609AD83B2A6D1864C5E967D36C2B80BCC3BB0024DEFAF

This will only be possible if 67% of nodes are still active for the specific Asgard vault, limited to the last 500k THORChain blocks (approximately 34 days). Also, this feature is only for gas assets deposits.

2. Streaming Swaps

On 7-Jul, v1.115 was rolled-out, bringing an exciting feature called Streaming Swaps. Read here for details. Devs took some time to test the feature on Stagenet, before raising ADR 010 on 23-Jul. On 26-Jul, after no dissenting votes were received, the feature was enabled on Mainnet.

First streaming swap transaction: https://viewblock.io/thorchain/tx/D7612777A110B666D9C29DF410CEA5A328592FA9B3BFC72B6CE9223E81C321C8

3. Completion of Killswitch

BEP2 & ERC20 $RUNE are no longer upgradable to native $RUNE, starting block 11,756,000, which was passed sometime on 18-Jul-2023. Killswitch was started on 19-Jul-2022, when BEP2 & ERC20 $RUNE started losing value linearly, from 1:1 vs native RUNE to 0:1 after one year. Current supply of $RUNE is now around 486m. Reference: https://medium.com/thorchain/upgrading-to-native-rune-a9d48e0bf40f

4. Preferred Assets for Affiliates

In v1.116, Preferred Assets for Affiliates were enabled. This means interfaces can collect their affiliate fees in any asset they want. THORChain will accumulate the affiliate fees, then auto swaps and pays out once the value is 100x greater than the outbound fee for that chain (so only 1% lost on gas). This improves the flexibility and eases the integration process for the interfaces.

https://twitter.com/thorchain/status/1681477740447559680

5. Clear Pending Liquidity

Pending liquidity happens for symmetrical deposits where only one side (whether RUNE or Asset) was successfully added. In the past, users will not enjoy any yield, while protocol still has to secure the pending liquidity. Starting from v1.116, the protocol will auto-convert pending liquidity deposits into an asymmetrical LP position, seven days after a pending liquidity was received (without completion of the deposit of the other asset). Users will start to receive yield from their LP, and the pool depths will be deepened.

6. Treasury LP Rebalancing

On 26-Jul, THORChain Treasury started executing some rebalancing of LP positions. Treasury will withdraw from BEP2-BTC, ETH & BUSD LP positions (without claiming any ILP); then execute streaming swaps to native BTC, ETH & ERC-20 USDC respectively; and then finally re-enter into native BTC, ETH & ERC-20 USDC LPs. This is in response to the sunset of BUSD redemption (as announced by Binance/Paxos) and reduced focus on BEP2.

Feel free to hop into the TC University Discord to chat about this, or any other THORChain questions that you may have.

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