Did you know that Dogecoin holders can now use THORSwap to swap their coins for native Bitcoin, Binance Coin, Ethereum, and even stablecoins? THORChain now supports Dogecoin which is great news for its community because of opens up the coin to new and exciting DeFi capabilities.
For those who have never heard of THORChain; it is a Cosmos-based Blockchain protocol for swapping crypto-assets like Ethereum and Bitcoin across Blockchain networks. It has been described as the DeFi bridge for Ethereum, Bitcoin, and more.
DOGE on THORChain
Starting this week, THORChain users will be able to earn yields on their DOGE or even swap DOGE using the non-custodial decentralized exchange (THORSwap).
In simple terms, this means that users can now exchange/swap DOGE in exchange for native assets such as BTC, ETH, LTC, BNB, and even stablecoins such as USDT, USDC, and BUSD. The best part is that all these swaps between THORChain assets can be completed in one step without having to bridge, swap, or peg assets.
According to a THORChain developer, a liquidity pool has been established for DOGE. This pool will enable DOGE liquidity providers to earn yields on their deposits from trading fees. DOGE liquidity providers will have impermanent loss protection based on the period of each deposit just like all the other liquidity providers. Reportedly, as of Jan 19, the DOGE pool had almost $4 million in liquidity and was yielding up to 15% APY for liquidity providers.
THORChain’s technical lead, Chad Barraford, claims that the integration gives DOGE a new level of self-sovereignty where its users can enter exit the market free of KYC regulations. This new DeFi capacity changes the asset’s fundamentals as a store of value and a medium of exchange. THORSwap and THORChain have both shown exemplary performance in the recent past.