Single Chain Chaosnet is Shutting Down
Trading on single-chain chaosnet has been halted, effectively shutting down BEPSwap, the Binance Chain decentralized exchange interface built on THORChain technology.
With no more economic incentive to continue to provide liquidity and run nodes, BEPSwap liquidity providers will withdraw tokens and operators will shutdown their servers. This is the final step before the developers perform a "ragnarok", where funds that are remaining in the system will be returned to their original wallets.
THORChain is composed of two major elements: its theoretical economic design (the incentive pendulum), as well as the technical challenge of cross-chain swaps.
BEPSwap provided a proof-of-concept DEX and allowed THORChain's economic game-theory to be validated in the wild. The network proved to be incredibly stable, and processed $5 billion in volume over 750,000 swaps during its 9 month lifespan.
5,000 liquidity providers and 36 node operators participated in the network, consistently earning double-digit APY.
Liquidity providers and node operators are expected to migrate to multi-chain chaosnet as quickly as the pool caps and node churns allow. A graceful transition from SCCN to MCCN is a delicate process due to the incentive pendulum requiring a balance between the amount of tokens pooled and bonded.
As was the case with BEPSwap, once a certain threshold is reached, the caps can be completely lifted once the total value locked is great enough to maintain stability without intervention.
The primary requirements for transitioning from chaosnet to mainnet:
- Over 40 active nodes
- 30 million RUNE bonded
- 15 million RUNE pooled
- 5 chains are stable
- Nodes have been granted mimir control
Read more about the transition from chaosnet to mainnet on Medium.