THORChain is following through on the plan to restore solvency to the network.
Earlier this week, the THORChain team outlined a plan to get the network back up and running. This involved a series of node updates as well as a three-phase proposal to purchase enough ETH to restore the pool to pre-exploit levels.
The first two phases of that plan are now complete. 1,400 ETH has been purchased using USDC from the treasury, and with the help of Cream's Iron Bank and Andre Cronje, a $2.7 million dollar loan has been secured by way of collateralizing RUNE from the treasury.
This allows the treasury to obtain enough ETH to rebalance the pools without needing to sell RUNE on the open market. It is also an impressive demonstration of the power of decentralized finance and builders working together to utilizing DeFi native protocols to solve problems.
The Iron Bank loan will be paid back over time as the price of RUNE recovers. It is over collatoralized at 150% to avoid liquidation.
The final phase of making the network whole is the gradual process of depositing treasury RUNE back into the pools, slowly lifting the LP share value back to pre-exploit levels while avoiding unfavorable price action. This can be done after trading resumes, as it requires arbitragers to assist in the balancing process.
The network is currently in the process of upgrading to v0.62.1, which will enable trading on the non-Ethereum chains. The following 0.63.0 update will include the much needed autonomous insolvency detection feature, and will allow Ethereum chain trading to resume.
