THORChain’s RUNE has surged about 37% to $5.56 following the launch of synthetic asset trading on the protocol.
The platform’s DEX, THORSwap, which enables users to earn a yield and provide liquidity has equally jumped 11% in the same period.
Developers say that synthetics are expected to boost the protocol usage and TVL and to generate more revenue for liquidity providers.
Synthetics are expected to increase the demand for RUNE within the protocol and spur liquidity providers’ appeal for the underlying assets.
Synthetic assets are the on-chain representation of other assets supported partly by cryptocurrencies and partly by RUNE. The assets enable users to hold and transact base assets faster and affordably.
THORChain allows users to run trustless trading and token swaps in multiple digital assets, including Bitcoin and Ether, through RUNE.
RUNE allows the exchange of one token to another in a decentralized environment without the need for smart contracts.