Introduction

• In This Analysis, You will read about offset emissions on Thorchain. I went through Thorchain and examined the relation between Swap Fees and Block Rewards.
• I was looking for an answer. How much swap volume does THORChain need to offset emissions?
• I analyzed Swap volume and fees in USD and Rune, also Swap fees and block rewards to find a proper answer. I tried multiple numbers and check the charts. What you will see is a final answer.

Analyzed by Hess - Reading Time Almost 7 Min.

Method

• The method was simple. For swap volume and swap fees, I looked into the Thorchain swap table. We have Swap volume in USD and Fees in USD and Rune. I calculated swap volume in Rune by dividing Swap volume in USD by Rune price.
• Also, We have a table for Block rewards. I summed block rewards+earnings to reach block rewards. Then multiplied to Rune price to approach block rewards in USD.

For the Final answer, I multiplied Swap fees 2x and 3x to see which one will offset the emission.

• All charts data are from January 2022.

Block Rewards and Swap Fees ( Current and Multiple 3x )

• As you can see, The current status is a little odd. Most weeks, The Block rewards in USD and Rune was higher than swap fees in Rune and USD.

Block Rewards in USD and Rune

• Block Rewards in Rune didn’t change over time but in USD had too many ups and downs. The weekly block rewards between March and May were higher than in other months. After May, By dropping in Rune price, The block rewards in USD decreased.

A Summary of the most important Findings:

• Since January 2022, The total swap volume is 9.9B US dollars and 2.7B Rune.
• 9.9B Swap volume generated 9.9M Swap Fees in USD and 2.4M in Rune.
• Nearly 43M In USD and 10M in Rune Block rewards were generated in January 2022.
• Most Blocks were generated Between March and May.
• Right now, The weekly block rewards in USD and Rune was higher than swap fees in Most weeks.
• I multiplied the Swap fees 2x but still, some days block rewards were equal to or higher than swap fees. Especially in Rune amount.
• But when I multiplied swap fees 3x, The Swap fees in Rune and USD were higher than block rewards.

Full Analysis

Swap Volumes and Swap Fees in USD and $Rune

Swap Volumes and Swap Fees in USD and $Rune multiplied 3x

• First, I multiplied Swap fees 2X, The volume in USD was higher than in block rewards but The Volume in Rune was equal to or near to block rewards. But then I multipled swap fees 3X, Both Swap fees in Rune and USD was higher than block rewards.

Conclusion

• I explained my theory and conclusion in the previous section. Thorchain needs 3x Swap volumes to offset emissions.

THANK YOU FOR READING!

All CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @hessaminanloo

:t-rex: Discord: hess#0890

:calendar: Analyze Date: 2022/OCT/05