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In conclusion, it has been demonstrated that BUSD has been the dominant stablecoin in THORChain since the beginning of 2022. However, since the incorporation of synthetic forms of USDC and BUSD in the platform, USDC has seen a major adoption rate among the swappers owing to its synthetic form. Although there were fluctuations in the overall number and volume of swaps in the first six months of the year, the trend of swaps in THORChain has been quite similar to the movements of the whole crypto market.
Overall, the volume, the number of swaps, and the number of USDC and BUSD swappers have been almost equal for both swapping from and swapping to these two tokens since the beginning of 2022. The number of swappers swapping to these tokens was slightly higher than those who swapped from them. The amount of each of these metrics was low in January and February, and they hugely increased from March to the early days of May, before the Terra crash. After that, their trend has been downward as the whole crypto market slides to lower levels. Interestingly, while the number of swappers and the volume of swaps have decreased, the number of swaps increased, especially in June. This indicates that although the number of users has gotten lower, their engagement increased and the platform has seen higher user activity in the last month.
THORChain is a decentralized cross-chain liquidity protocol that operates as a Layer1 cross-chain decentralized exchange (DEX). It does not peg or wrap assets and simply determines how to move assets in response to user actions. THORChain is primarily a leaderless vault manager which secures the assets in its vaults and has economic guarantees that those assets are safe. Its key objective is to be resistant to centralization and capture whilst facilitating cross-chain liquidity.
THORChain synthetic assets are primitives for both higher-order financial features, as well as fully-secured, fully-backed synthetic assets that can be sent anywhere in the Cosmos IBC ecosystem. THORChain synthetics are unique in that they are 50% backed by their own asset, with the other 50% backing being provided by RUNE. This is achieved by using pool ownership to collateralize the synth, which ensures always-on liquidity and pricing.
The token analysis of swaps from and to USDC and BUSD combined has demonstrated that BUSD is by far the dominant stablecoin on THORChain. The daily trend is quite similar to the overall trend of swaps since the beginning of the year. It is worth mentioning that the presence of USDC in swaps has become more significant since the middle of March, and while it has still had a lower share compared to BUSD, it has had a positive trend in terms of usage.
The breakdown of swaps into two existing asset types of USDC and BUSD on the THORChain ecosystem, it has been indicated that the primary asset form has had a higher share of swaps in all metrics since the beginning of 2022. The synthetic assets were incorporated into the platform since the middle of March and they registered a significant amount of swaps both in number and in volume until the end of April. Their trend has been downward since then, except the number of swaps which saw an increase in the middle of June.
The comparison of different asset types of USDC and BUSD has shown that while the swap rate of BUSD among the swappers has been the highest, the synthetic BUSD has had the highest volume rate among them. It should be noted that the difference between the two forms of BUSD is not too significant and the data have demonstrated that it is the most used stablecoin on the platform. On the other hand, the dominant form of USDC has been its synthetic one, and since its launch in mid-March, it has accounted for a large share of swaps. Time-wise the synthetic form of BUSD was only dominant in March and April. Apart from that, the increase in the volume and number of synthetic USDC swaps reached a level in which it surpassed the daily rate of BUSD in June. Since then, the swap and volume rate of the synthetic form of USDC and the primary form of BUSD has been almost equal.
