THORChain (RUNE) is a decentralized liquidity protocol that enables users to swap native cryptocurrencies across different blockchains—such as swapping real Bitcoin for real Ethereum—without the need for "wrapped" tokens or centralized intermediaries. Often described as a "cross-chain automated market maker," the network relies on the RUNE token as the universal settlement asset; every asset in the system is paired with RUNE in a liquidity pool (e.g., BTC/RUNE), which facilitates the swap between chains. To ensure the safety of these funds, the protocol utilizes a unique security model where node operators must "bond" (lock) an amount of RUNE significantly higher than the value of the assets they are protecting. This mechanism, balanced by the Incentive Pendulum, ensures that it is always more profitable for nodes to secure the network honestly than to steal the funds.
