DOGE Gets DeFi Yields And Swaps From THORChain

THORChain is a decentralized blockchain technology that allows users to transfer digital assets between different blockchains free access to cross-chain liquidity. THORChain was placed 63rd among the top 100 cryptocurrency projects by market capitalization on January 10th. Dogecoin (DOGE) now has support for the cross-chain liquidity network built on Tendermint and Cosmos SDK, adding a new set of decentralized finance (DeFi) features to the popular meme coin. THORSwap now allows Dogecoin enthusiasts to exchange their favorite meme coin for native, ETH, BTC, BNB, and stablecoins. This is a significant step forward for the meme coin, and it may be useful. The coin has remained on the sidelines as the DeFi ecosystem developed, but now that it is part of THORChain, it has a new degree of sovereignty and DeFi capabilities. It would also alter the asset’s fundamentals as a store of value and medium of exchange. The first-ever DeFi protocol link to the standalone DOGE blockchain network has been delivered by THORChain, which has thrilled Dogecoin (DOGE) users. Diamond-handed investors wishing to reap more harvests from their stacks through a permissionless DOGE liquidity pool can now do so thanks to this new feature.

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Dogecoin clients can now trade DOGE for different currencies or acquire yields on their DOGE holdings through THORSwap, a multi-chain DEX aggregator based on THORChain’s cross-chain liquidity convention and the #1 connection point for all THORChain administrations like THORNames and synthetic assets. THORSwap at present backings cross-chain L1 trades between 20+ crypto resources, including DOGE, across 5+ blockchains in a decentralized and non-custodial way. Practically speaking, this implies that clients can trade DOGE for local assets like Ether (ETH), Bitcoin (BTC), Binance Coin (BNB), stable coins  (Tether, USD Coin, and Binance USD), and Litecoin (LTC). 

Devoid of the need to wrap, peg, or bridge assets, any transactions between THORChain assets, such as DOGE, can be executed in a single step.

A liquidity pool for DOGE has been created, according to the THORChain developer. DOGE liquidity providers can earn yields on their deposits through trading fees thanks to the liquidity pool. The DOGE liquidity pool is where users store their DOGE tokens on the system. A part of the trading fees received from each exchange is paid to fund providers or users who deposit funds in the liquidity pool.

Like every other THORChain liquidity provider, depositors have impermanent protection against loss that is influenced by the time each deposit is held. The developer also stated that the DOGE pool had around $4 million in liquidity as of January 19, 2022, and that liquidity providers were earning up to 15% APY.

The connection enables DOGE “a new degree of self-sovereignty,” according to THORChain’s technical lead, Chad Barraford, by allowing users to enter and exit the market without having to comply with Know-Your-Customer (KYC) rules. Dogecoin’s expanded Defi capability, according to Barraford, “changes the fundamentals of the asset as a store of value and as a means of trade.”

Over the years, the THORChain network has seen significant expansion. THORChain raised $3.75 million from a private token sale in October. SSectorCapital, Nine Realms, IDEO CoLab Ventures, and OxVentures, among others, were among the venture capital firms that supported the sale. The network’s activity peaked in November 2021, with a total value locked (TVL) of over $400 million. Cross-chain exchanges were becoming more popular at the time. In 2022, growth climbed even more, which is impressive given that it was hacked numerous times in 2021. The network suffered considerable losses as a result of two major cyber attempts, but it was able to recover its operations thanks to its treasury fund.

Dogecoin (DOGE) is an ironic digital currency in light of a Shiba Inu dog image that became far-reaching on the web. The meme coin was at first settled as a parody of other digital currency projects that were being presented at that point, yet it developed to reputation in mid-2021when numerous persuasive individuals, including Elon Musk, tweeted about its advantages on various occasions. DOGE turned into an adequate type of installment for Dallas Mavericks tickets and, all the more as of late, Tesla items because of this interaction. With a market capitalization of $21.8 billion, it is currently positioned eleventh as far as absolute market capitalization.

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