What THORChain is
THORChain is a blockchain built for one job: swapping native assets between chains that cannot talk to each other, such as Bitcoin and Ethereum. It is run by node operators who each bond RUNE, its native token, as collateral. The bond is worth more than the funds they collectively secure, so stealing would cost them more than it pays.
The nodes watch every connected chain and jointly control vaults: addresses on Bitcoin, Ethereum, Litecoin and the others whose keys are split between nodes with threshold signatures. No single operator can move the funds. Vaults rotate regularly as nodes join and leave, which is why the deposit address changes over time.
The result is that you send real ETH and receive real BTC at a Bitcoin address. Nothing is wrapped, and there is no custodian holding a reserve on your behalf.
Continuous liquidity pools and RUNE
Each asset THORChain supports has a pool that pairs it with RUNE. RUNE is the settlement asset: every swap between two external assets passes through it. Liquidity providers deposit into those pools and earn the fees.
Pools price trades with a continuous formula, like the AMMs on Ethereum, but the fee is not a fixed percentage: it grows with the size of the swap relative to the pool. Small swaps in deep pools are cheap; large swaps in shallow pools pay more. For large amounts, THORChain can split the trade into a streaming swap executed over several blocks to reduce that cost, and refund any part that cannot fill above your minimum.
How a swap works
Quote
THORNode returns the expected output, fees, timing, the current inbound address (the vault to pay), the memo to attach and an expiry. Below a recommended minimum, the route is refused because fees would eat the amount.
Deposit with a memo
On a UTXO chain you send coins to the inbound address with the memo in the transaction. On EVM chains you call THORChain's router contract, which forwards the funds to the vault with the memo and a deadline.
Observation and swap
Once the deposit has enough confirmations on its chain, the nodes record it and run the swap through the pools.
Outbound
A vault sends the output coin to your address. Large swaps wait an outbound delay scaled with their value, from minutes to over an hour, which gives nodes time to react to an attack.
The memo is the instruction THORChain follows. A swap memo has this shape:
=:BTC.BTC:bc1q…:limit:affiliate:bps
| Part | Meaning |
|---|---|
| = | Swap |
| BTC.BTC | Asset to receive: native bitcoin on the Bitcoin chain |
| bc1q… | Your destination address on that chain |
| limit | Minimum amount out; below it the swap is refunded |
| affiliate, bps | Optional interface fee, shown in the quote when present |
Fees and timing
| Cost | How it works |
|---|---|
| Liquidity fee | Grows with the size of your swap relative to pool depth. It goes to liquidity providers and replaces a fixed trading fee. |
| Outbound fee | Covers the network fee THORChain pays to send the coin to you, so it is higher on Bitcoin than on Dogecoin. |
| Source gas | Paid in the gas token of the network you deposit from. |
| Interface fee | Any ChainBridge affiliate fee is listed in the quote; the route says when there is none. |
Time depends on confirmations and on the outbound delay. A deposit from an EVM network is observed within a few minutes; Bitcoin blocks average ten minutes, so routes that touch Bitcoin are slower. The quote shows an estimated total, and the swap card tracks the transfer until the coins arrive.
What ChainBridge checks before you deposit
A wrong vault address is the most expensive mistake in a THORChain swap, so ChainBridge does not trust a single node with it:
- Two independent THORNodes. The vault, the router and the halt flags for your chain must be identical on at least two nodes run by different providers. If they disagree or one is unreachable, the quote stays visible but the deposit is not built.
- Known router. On EVM networks the router contract must be on a reviewed allowlist. A router upgrade blocks deposits until it is verified.
- Memo checked. The memo must pay the address you entered, in the asset you selected, with no unexpected fee recipient.
- Fresh and bounded. The confirmed vault list is reused for 30 seconds at most, the deposit deadline is capped at one hour, and trading halts on a chain stop the route.
Routes in ChainBridge
You can swap from these networks and assets to native BTC, LTC, DOGE and BCH:
| From network | Assets |
|---|---|
| Ethereum | ETH, USDC, USDT, WBTC, DAI |
| Base | ETH, USDC |
| BNB Chain | BNB, USDT, USDC |
| Avalanche | AVAX, USDC, USDT |
The reverse direction, from native BTC, LTC, DOGE or BCH to an EVM network, is quote only: ChainBridge does not connect Bitcoin-style wallets. Arbitrum, Optimism, Polygon and Linea are not THORChain chains. Same-chain swaps never go through THORChain; they use the aggregators.
Risks compared to wrapped tokens
| Aspect | THORChain native swap | Wrapped token (e.g. WBTC) |
|---|---|---|
| What you hold | The real coin in your own wallet | A token backed by a custodian or bridge |
| Trust | The bonded node set, during the swap only | The custodian, for as long as you hold it |
| Failure mode | Refund if the minimum is not met | Backing at risk if the custodian fails |
| Speed | Minutes to over an hour | Same-chain swap, seconds |
THORChain is not risk free. It suffered several exploits in 2021, it can halt trading on a chain during an incident, and shallow pools mean real price impact on large swaps. Your exposure lasts only while the swap is in flight, but size your first swaps accordingly. For the wider picture, see bridge security.