THORChain Preps Major Expansion With Monero

THORChain is on the cusp of a significant milestone with the integration of Monero, a leading privacy-focused cryptocurrency. The primary keyword, THORChain preps major expansion Monero, highlights the project's ambitious plans.

Introduction to THORChain and Monero Integration

Developer Chad Barraford confirmed that the chain client for $XMR, built by contributor Boone, passed simulation testing. This milestone paves the way for the integration of Monero on THORChain's mainnet in approximately 1-2 months.

Technical Solution and Privacy Features

The main challenge was observability, as $XMR is a privacy chain. The solution involves creating a single Asgard vault dedicated to Monero with all active validators as members. This is viable because Monero uses Frost cryptography, which is more efficient than the GG20 scheme THORChain currently uses on other chains.

Key Technical Details

• The implementation of memoless transactions was required due to the 16-byte limit imposed by Monero.
• The use of artificial intelligence tools has significantly reduced the time and cost of producing new chain clients.

Expansion Plans and Protocol-Owned Liquidity

THORChain version 3.18 will incorporate the protocol-owned liquidity mechanism, which will redirect a percentage of system revenue toward pools with the highest fee ratio relative to their depth. Newer and smaller pools, such as those for Solana, Zcash, Monero, and $TAO, will receive the largest share of capital, estimated to be around $200,000 per month.

Key Takeaways

• THORChain is integrating Monero on its mainnet in 1-2 months.
• The protocol-owned liquidity mechanism will generate approximately $200,000 monthly.
• Zcash ($ZEC) aims to reach mainnet before the end of April.
• Bittensor ($TAO) is being developed in parallel with Monero.

Frequently Asked Questions

What is the expected timeline for Monero's integration on THORChain's mainnet?

The expected timeline is approximately 1-2 months, following the completion of stagenet and chaosnet testing phases.

How will the protocol-owned liquidity mechanism benefit newer pools?

The mechanism will redirect a percentage of system revenue toward pools with the highest fee ratio relative to their depth, providing newer pools with a larger share of capital.