ThorChain contributors have declared that the network fully supports Dogecoin. Dogecoin holders will be able to participate in the burgeoning decentralized finance (DeFi) industry as a result of this.
ThorChain is a cross-chain liquidity protocol with a DOGE liquidity pool built-in. This pool is already operational.
ThorChain’s DOGE liquidity pool
Users on the site will trade their Dogecoins and receive a return on their investments via the DOGE liquidity pool. Dogecoin owners may also exchange the meme currency for any of the other digital currencies offered by the site.
DOGE owners can exchange their tokens for Bitcoin, Ether, Binance Coin, Bitcoin Cash, Litecoin, and some stablecoins. Other Binance Smart Chain and Ethereum assets will be enabled as well.
With the establishment of this pool, Dogecoin holders will become ThorChain liquidity providers. As a result, they will provide yields based on the methodology. As a result, thorChain customers can reduce their chances of experiencing the same losses as main risk liquidity providers.
Chad Barraford, the technical lead at ThorChain, remarked on this, stating,
For years, DOGE has stood still, while DeFi exploded in other ecosystems. Today that changes, as DOGE reaches a new level of self-sovereignty by being able to enter and exit without being KYC’ed.
ThorChain is working to recover from a series of hacks
Given the difficult months the protocol had in 2021, the addition of Dogecoin to ThorChain’s protocol is like a breath of fresh air. Chaosnet was hacked for $5 million in July 2021. Another Bifrost protocol compromise was discovered, but the network could recover thanks to its treasury reserve.
ThorChain had a strong fourth quarter in 2021. In October, the site reopened for Ethereum trading. Furthermore, THORSwap, a decentralized exchange, raised $3.75 million during a token sale.
The price of Dogecoin has not changed as a result of the news. Elon Musk, the CEO of Tesla, had previously indicated that the electric car maker would take DOGE as payment, resulting in a little gain. Nevertheless, in the last 24 hours, the currency has lost almost 1.8 percent of its value.