Thorchain ($RUNE) launched Thor Lending on August 21.

Shape shift CEO Erik Voorhees defended it as an open-source, Mathematical Regulation approach, and gave a shilling many times.

https://twitter.com/ErikVoorhees/status/1693703620645339158

An also Some twitterians said $RUNE Lending is similar to Luna.

Lending with no liquidation, no maturity, no interest, let's see how this is possible.

What is THOR Lending?

Lending Process, Source: LP University

<aside> ⚖️ USERs: Put Collateral, Get Lending, Get right to claim 1 BTC whenever they want Lending: Get Collateral, Give Loan, Use remains to burn $RUNE, have to repay 1 BTC to user when they claim

</aside>

When a user deposits 1 BTC into the protocol, they can borrow a certain amount of assets based on the collateral ratio (CR). CR represents the proportion of the user's deposited assets in relation to the borrowed amount.

The portion of the deposited assets excluding the loan amount is used for burning $RUNE. In other words, in the example provided above, the collateral asset, which is 1 BTC, is immediately used for $RUNE burning and is not kept separately. According to the figure above, the user borrowed 10k, which is equivalent to 50% of the collateral asset. At this time, the CR is 200%, and a total of $5k RUNE was incinerated because the remaining $10k excluding the loan amount was used for incineration. (Minimum CR is 200%, up to 500%)

According to the figure above, the user borrowed 10k, which is equivalent to 50% of the collateral asset. At this time, the CR is 200%, and a total of $5k RUNE was incinerated because the remaining $10k excluding the loan amount was used for incineration. (Minimum CR is 200%, up to 500%)

Alongside the executed loan, the user obtains the right to receive back 1 BTC upon future repayment. This right is recorded on the THOR chain in terms of the stable asset unit called TOR. TOR is not a tradable asset and cannot be transferred. It can only be used as a means to record debt.