THORChain is a Layer-1 protocol that enables seamless cross-chain swaps without the use of wrapped assets. Allowing native assets to be directly exchanged across different blockchains eliminates the need for centralized exchanges, such as Coinbase, and provides users with a truly decentralized trading experience. The protocol uses continuous liquidity pools (CLP) paired with its native token, RUNE, to maintain liquidity, while dynamic fee adjustments ensure efficiency based on each pool's liquidity depth.
THORChain's decentralized infrastructure has become a go-to backend solution for Web3 wallets, enabling cross-chain asset swaps directly within their user interface. These integrations allow wallets to retain users while offering a streamlined, secure trading experience. By serving as neutral, censorship-resistant swap infrastructure, THORChain not only facilitates efficient liquidity movement but also generates revenue for the protocol through two different fees. Swaps through the pools are charged a liquidity fee based on the slip the swaps cause. This swap fee goes to the LPs and nodes. Meanwhile, affiliates (like wallets) can charge an additional affiliate fee that is a basis point amount of the swap size.
Integrations and Affiliates
THORChain's revenue model centers on its function as a decentralized cross-chain liquidity network, primarily generating income through transaction fees and liquidity provision. A significant portion of THORChain's revenue comes from swapping fees. When users exchange one asset for another via THORChain, a fee—typically a small percentage of the transaction amount—is charged. This fee is shared between the network's liquidity providers and node operators. The fee structure is designed to be competitive, ensuring affordability for users while providing adequate rewards for participants. Currently, the minimum swap fee is eight basis points for a single swap (BTC -> RUNE) and 16 basis points for a double swap (BTC -> ETH).
As of Q4 2024, THORChain has achieved a cumulative trading volume exceeding $80 billion, reflecting its growing role in the decentralized finance ecosystem.
These fees are distributed among the network's stakeholders, including liquidity providers (LPs), node operators, and RUNE token holders. Over time, liquidity fees are expected to stabilize at 50% of total income as a portion of collected fees is reinvested into the reserve. This reinvestment strategy ensures continuous block rewards, securing the platform's longevity. Beyond compensating nodes, liquidity providers, and the core development team. THORChain also generates notable revenue for wallets and other affiliates that integrate the protocol into their token-swapping features. In 2024 alone, the protocol has generated approximately $20 million through this use case.
THORChain's consistent network activity can be attributed in part to its ongoing pursuit of new integrations with wallets, exchanges, and custodial services. Rather than interacting directly with THORNodes, most users access THORChain's capabilities through these third-party platforms, which help broadcast transactions to the network.
To that end, ThorChain is steadily expanding its ecosystem by integrating with a range of wallets and DeFi platforms, looking to leverage its non-custodial, native asset-swapping technology. Wallets such as Ledger, Trust Wallet, OKX, and Ctrl, alongside aggregators like ShapeShift, LiFi, and Jumper, now support native RUNE functionality and enable seamless cross-chain swaps powered by THORChain. Decentralized exchanges like OpenOcean and Rubic are also utilizing the technology. THORChain’s ultimate vision is to become the foundational layer of DeFi, seamlessly powering liquidity and cross-chain transactions across wallets, interfaces, and aggregators—so effortlessly that users remain unaware of its backend operations.
To incentivize these integrations, wallet developers can add an affiliate address and set a custom fee rate, allowing them to earn affiliate fees for each transaction processed through their platform.
These affiliate fees serve as a sustainable revenue stream for wallets integrating with THORChain, with fees being seamlessly included in each swap. Wallets have the flexibility to set their own fee structure—such as Trust Wallet, which charges 70 basis points per swap—creating opportunities for consistent income while providing users with decentralized trading features.
Another critical feature of THORChain’s infrastructure is its affiliate fee mechanism. Wallets and interfaces participating in the network can specify the asset in which they prefer to receive affiliate fees. For example, a wallet may request payouts in USDC on Ethereum. The protocol accumulates these affiliate fees until the total reaches 200 times the gas fee required for a transaction on the specified blockchain. Once this threshold is met, the protocol transfers the accumulated fees directly to the wallet interface. This system minimizes transaction overhead while ensuring efficient fund distribution.
Some of THORChain’s most prominent new and existing integrations include:
- Ledger
- Trust Wallet
- THORSwap
- THORWallet
- ShapeShift
- Xdefi
- Asgardex
- OKX Wallet
- ZenGo
- BitPay
- And more
By integrating THORChain’s infrastructure, these wallets provide users with seamless trading functionality directly within their interfaces, bypassing the need for centralized exchanges. By reducing dependency on centralized intermediaries, the protocol strengthens user security and promotes a neutral, censorship-resistant trading environment.
Trust Wallet
In 2023, Trust Wallet introduced in-app cross-chain swaps through its integration with THORChain. This update eliminates the need for fiat onramps or direct interaction with complex cross-chain protocols, allowing users to conduct seamless swaps across multiple blockchains directly within the Trust Wallet app. Thus far, the Trust Wallet address has collected $9.2M+ in fees from its THORChain partnership and is the leading affiliate by volume in 2024.
THORChain’s infrastructure addresses key user concerns by offering unparalleled convenience and security. Its approach eliminates the need for account signups or holding funds on exchanges, significantly reducing custodial risks. Key benefits include:
- Native Asset Support: Users can swap native assets directly on their respective chains, avoiding reliance on synthetic or bridged tokens.
- Privacy Protection: THORChain does not collect or store personal identifying information, ensuring user privacy.
- End-to-End Transparency: All swap transactions are publicly visible on the blockchain.
- Decentralization: Fees are distributed among THORChain liquidity providers and node operators, reinforcing the network's decentralized and censorship-resistant structure.
The integration allows Trust Wallet users to perform cross-chain swaps involving BTC, ETH, and Binance Smart Chain (BEP20) assets, addressing the complexities of bridging assets and reducing dependence on fiat onramps. By embedding cross-chain swap functionalities directly into the wallet, the integration provides a streamlined user experience, eliminating the need for users to navigate the often risky process of bridging assets. This enhances asset flexibility by enabling users to swap native assets across different blockchains without relying on wrapped or bridged tokens, which typically carry additional custodial risks.
Trust Wallet now provides a wide array of swap functionalities tailored to different user needs:
- THORChain Swaps: Users can swap BTC, ETH, BSC, DOGE, and AVAX assets natively through THORChain’s infrastructure.
- 1inch Swaps: Leveraging 1inch, Trust Wallet supports interchain swaps across eight EVM-compatible chains, including Ethereum, BSC, Polygon, and Avalanche. Users can swap tokens like ETH or BNB with their corresponding ERC-20 or BEP-20 assets directly within the app, avoiding the need to connect to external dApps.
Ledger Live
Ledger Live is a leading cold storage hardware wallet that has also partnered with THORChain to introduce native cross-chain swaps within its application. This integration marks a significant milestone for Ledger, as it is the first instance of the platform incorporating a DeFi protocol to facilitate direct blockchain-to-blockchain swaps. Users can now trade assets across networks without leaving the Ledger Live app, enhancing convenience and security for cryptocurrency management. This integration bridges a significant gap in the user experience by offering decentralized, cross-chain swap functionality within a trusted hardware wallet ecosystem. It combines THORChain’s advanced DeFi capabilities with Ledger’s reputation for robust security, empowering users to conduct swaps with minimal friction.
Other benefits of utilizing THORChain for swaps include self-custody and reduced slippage. Ledger Live eliminates reliance on third-party exchanges by leveraging THORChain’s non-custodial and cross-chain liquidity protocol. This reduces exposure to risks associated with centralized exchange failures or security breaches, providing users with a secure and decentralized swapping solution. Additionally, THORChain minimizes slippage and prevents malicious activities such as frontrunning and miner extractable value (MEV) exploitation. These features are particularly advantageous for high-value transactions involving assets like Bitcoin.
The integration initially supports swaps for a range of major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), Dai (DAI), and Wrapped Bitcoin (WBTC). Additional ERC-20 tokens are slated for future inclusion, further expanding the app’s functionality. All swaps occur directly within the Ledger Live desktop app, eliminating the need for users to leave the platform, undergo KYC processes, or create new accounts.
OKX
OKX Wallet is a decentralized multi-chain wallet supporting over 60 networks and utilizing THORSwap for cross-chain swaps. Available as a browser extension and compatible with iOS/Android through WalletConnect V2, OKX Wallet currently supports Avalanche and Ethereum on mobile. By integrating OKX Wallet with THORSwap, users gain access to a versatile multi-chain wallet alongside a leading decentralized cross-chain exchange, creating a seamless experience for navigating the Web3 world.
Additionally, the OKX Wallet does not store seed phrases, private keys, or passwords, nor does it transmit them to external servers. This ensures THORSwap users can transact securely and confidently using OKX's robust security measures.
With this integration, THORSwap provides compatibility with seven browser extension wallets, two hardware wallets, keystore, and WalletConnect v2.0-compatible wallets on mobile. This broad compatibility is designed to streamline your cross-chain swapping experience, making it as straightforward as possible.
Zengo
Zengo, a leading self-custodial wallet known for its innovative approach to eliminating seed phrase vulnerabilities, also launched an in-wallet swap solution powered by THORChain. Zengo distinguishes itself as a pioneer in self-custodial wallet technology, utilizing institutional-grade multi-party computation (MPC) rather than traditional seed phrases to secure user wallets. This approach eliminates the risks associated with seed phrase management, such as phishing and unauthorized access. The wallet’s multi-chain support spans Bitcoin, Ethereum, Polygon, Arbitrum One, Optimism, Base, Dogecoin, Tezos, and thousands of other cryptocurrencies, making it a versatile tool for crypto users.
The integration of THORChain into Zengo introduces a decentralized exchange experience that is directly in the wallet. THORChain’s non-custodial design, combined with its low-slippage swaps and resistance to front-running and miner extractable value (MEV) exploitation, ensures that users enjoy efficient and transparent transactions.
THORChain-Generated Revenue
November 2024 saw a record-breaking 18 affiliates surpass $1 million in monthly volume, highlighting how THORChain's influence continues to expand across various platforms and communities as new affiliates join, each contributing their unique user base.
THORChain affiliates generated over $3 million in revenue during Q3, with Q4 poised for even greater profitability. Daily affiliate earnings averaged approximately $35,000 in Q3, with a peak of $150,000 on a single day driven by heightened market volatility. The start of Ledger integration in Q4, coupled with rising cryptocurrency prices, has propelled weekly affiliate fees to over $1 million, with Ledger and TrustWallet generating the majority of the fees. This sustained growth underscores the expanding utility of the THORChain ecosystem and its increasing value to third-party platforms.
Another important metric for affiliates is volume, as more swapping volume equates to more fees generated. The THORChain ecosystem in 2024 has demonstrated significant growth in affiliate-driven activity. Affiliates such as THORSwap, Trust Wallet, and Ledger have been pivotal in driving this expansion, with each contributing meaningfully to the platform's broader utility. THORSwap (orange on the chart) consistently led in swap volume in the early weeks but has been consistently surpassed by Trust Wallet. Surges in activity often correlate with market volatility or key integrations, such as Ledger’s entry into the network, reflected by the growing blue segment. These spikes indicate the ecosystem's capacity to respond to both external market dynamics and internal technological advancements.
Among the affiliates, THORSwap recorded the highest total swap volume in Q1 2024, generating approximately $680 million in transaction value. However, Trust Wallet experienced remarkable growth in Q4, surpassing THORSwap as the leader with a volume of $535 million. Combined, these two affiliates accounted for 73% of the total volume from the top seven contributors, showcasing their substantial influence within the network. Their dominance reflects a concentration of activity among key players, highlighting both the reliance on high-performing platforms and the potential for scaling through further diversification of affiliates.
Analyzing swap routes and liquidity fees provides further insight into the mechanics driving THORChain's ecosystem. The top three swap routes by USD volume—BTC to ETH, BTC to RUNE, and BTC to USDT—indicate user preference for high-demand trading pairs involving Bitcoin, Ethereum, and stablecoins. This trend underscores the platform's ability to facilitate liquidity for widely traded assets. Similarly, the top three routes by liquidity fees mirror these preferences, with BTC to ETH generating the highest fees, followed by BTC to RUNE and BTC to USDT. These patterns highlight the alignment between user demand and fee structures, ensuring sustained revenue streams for liquidity providers and the network.
The diversification of contributors such as OKX, ShapeShift, and Ledger further supports the ecosystem's resilience and scalability. While THORSwap and Trust Wallet remain dominant, the participation of additional affiliates reflects growing adoption and increasing decentralization within the platform. This expansion positions THORChain as a competitive player in the decentralized finance sector, particularly as integrations with hardware wallets like Ledger enhance accessibility and security for users.
Conclusion
THORChain has emerged as a critical component of the decentralized finance ecosystem, providing infrastructure that facilitates seamless cross-chain asset swaps without relying on centralized exchanges or wrapped tokens. By leveraging continuous liquidity pools and its native token, RUNE, the protocol ensures efficient liquidity management and dynamic fee adjustments. This design, coupled with its decentralized and censorship-resistant framework, has positioned THORChain as a preferred backend solution for Web3 wallets and DeFi platforms.
The protocol's success is evident in its growing adoption among major affiliates, including Trust Wallet, THORSwap, and Ledger, which have driven significant transaction volumes and revenue generation. In 2024, affiliate-driven activity has reached new heights, with daily and weekly earnings reflecting the network's expanding utility and relevance. The data underscores the value of THORChain’s ecosystem to third-party platforms, enabling them to offer secure and user-friendly cross-chain trading functionalities.
Furthermore, THORChain’s integrations with wallets, exchanges, and aggregators such as Trust Wallet, OKX, ShapeShift, and Zengo highlight its ability to adapt to evolving market needs. By embedding native asset swaps within these platforms, THORChain eliminates the risks and inefficiencies associated with centralized intermediaries and synthetic assets, fostering a more secure and streamlined trading environment. Innovations like Ledger’s integration also demonstrate the protocol's capability to enhance security and usability for retail and institutional users alike.
Looking ahead, THORChain's emphasis on decentralization, scalability, and continuous integration with emerging platforms ensures its relevance in an increasingly interconnected blockchain landscape. As it strives to become the foundational layer for decentralized finance, its robust infrastructure and affiliate-driven revenue model will likely continue to attract participants and expand its influence across the industry.
Disclaimer: This report was commissioned by Thorchain. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
THORChain is a Layer-1 protocol that enables seamless cross-chain swaps without the use of wrapped assets. Allowing native assets to be directly exchanged across different blockchains eliminates the need for centralized exchanges, such as Coinbase, and provides users with a truly decentralized trading experience. The protocol uses continuous liquidity pools (CLP) paired with its native token, RUNE, to maintain liquidity, while dynamic fee adjustments ensure efficiency based on each pool's liquidity depth.
THORChain's decentralized infrastructure has become a go-to backend solution for Web3 wallets, enabling cross-chain asset swaps directly within their user interface. These integrations allow wallets to retain users while offering a streamlined, secure trading experience. By serving as neutral, censorship-resistant swap infrastructure, THORChain not only facilitates efficient liquidity movement but also generates revenue for the protocol through two different fees. Swaps through the pools are charged a liquidity fee based on the slip the swaps cause. This swap fee goes to the LPs and nodes. Meanwhile, affiliates (like wallets) can charge an additional affiliate fee that is a basis point amount of the swap size.
Integrations and Affiliates
THORChain's revenue model centers on its function as a decentralized cross-chain liquidity network, primarily generating income through transaction fees and liquidity provision. A significant portion of THORChain's revenue comes from swapping fees. When users exchange one asset for another via THORChain, a fee—typically a small percentage of the transaction amount—is charged. This fee is shared between the network's liquidity providers and node operators. The fee structure is designed to be competitive, ensuring affordability for users while providing adequate rewards for participants. Currently, the minimum swap fee is eight basis points for a single swap (BTC -> RUNE) and 16 basis points for a double swap (BTC -> ETH).
As of Q4 2024, THORChain has achieved a cumulative trading volume exceeding $80 billion, reflecting its growing role in the decentralized finance ecosystem.
These fees are distributed among the network's stakeholders, including liquidity providers (LPs), node operators, and RUNE token holders. Over time, liquidity fees are expected to stabilize at 50% of total income as a portion of collected fees is reinvested into the reserve. This reinvestment strategy ensures continuous block rewards, securing the platform's longevity. Beyond compensating nodes, liquidity providers, and the core development team. THORChain also generates notable revenue for wallets and other affiliates that integrate the protocol into their token-swapping features. In 2024 alone, the protocol has generated approximately $20 million through this use case.
THORChain's consistent network activity can be attributed in part to its ongoing pursuit of new integrations with wallets, exchanges, and custodial services. Rather than interacting directly with THORNodes, most users access THORChain's capabilities through these third-party platforms, which help broadcast transactions to the network.
To that end, ThorChain is steadily expanding its ecosystem by integrating with a range of wallets and DeFi platforms, looking to leverage its non-custodial, native asset-swapping technology. Wallets such as Ledger, Trust Wallet, OKX, and Ctrl, alongside aggregators like ShapeShift, LiFi, and Jumper, now support native RUNE functionality and enable seamless cross-chain swaps powered by THORChain. Decentralized exchanges like OpenOcean and Rubic are also utilizing the technology. THORChain’s ultimate vision is to become the foundational layer of DeFi, seamlessly powering liquidity and cross-chain transactions across wallets, interfaces, and aggregators—so effortlessly that users remain unaware of its backend operations.
To incentivize these integrations, wallet developers can add an affiliate address and set a custom fee rate, allowing them to earn affiliate fees for each transaction processed through their platform.
These affiliate fees serve as a sustainable revenue stream for wallets integrating with THORChain, with fees being seamlessly included in each swap. Wallets have the flexibility to set their own fee structure—such as Trust Wallet, which charges 70 basis points per swap—creating opportunities for consistent income while providing users with decentralized trading features.
Another critical feature of THORChain’s infrastructure is its affiliate fee mechanism. Wallets and interfaces participating in the network can specify the asset in which they prefer to receive affiliate fees. For example, a wallet may request payouts in USDC on Ethereum. The protocol accumulates these affiliate fees until the total reaches 200 times the gas fee required for a transaction on the specified blockchain. Once this threshold is met, the protocol transfers the accumulated fees directly to the wallet interface. This system minimizes transaction overhead while ensuring efficient fund distribution.
Some of THORChain’s most prominent new and existing integrations include:
- Ledger
- Trust Wallet
- THORSwap
- THORWallet
- ShapeShift
- Xdefi
- Asgardex
- OKX Wallet
- ZenGo
- BitPay
- And more
By integrating THORChain’s infrastructure, these wallets provide users with seamless trading functionality directly within their interfaces, bypassing the need for centralized exchanges. By reducing dependency on centralized intermediaries, the protocol strengthens user security and promotes a neutral, censorship-resistant trading environment.
Trust Wallet
In 2023, Trust Wallet introduced in-app cross-chain swaps through its integration with THORChain. This update eliminates the need for fiat onramps or direct interaction with complex cross-chain protocols, allowing users to conduct seamless swaps across multiple blockchains directly within the Trust Wallet app. Thus far, the Trust Wallet address has collected $9.2M+ in fees from its THORChain partnership and is the leading affiliate by volume in 2024.
THORChain’s infrastructure addresses key user concerns by offering unparalleled convenience and security. Its approach eliminates the need for account signups or holding funds on exchanges, significantly reducing custodial risks. Key benefits include:
- Native Asset Support: Users can swap native assets directly on their respective chains, avoiding reliance on synthetic or bridged tokens.
- Privacy Protection: THORChain does not collect or store personal identifying information, ensuring user privacy.
- End-to-End Transparency: All swap transactions are publicly visible on the blockchain.
- Decentralization: Fees are distributed among THORChain liquidity providers and node operators, reinforcing the network's decentralized and censorship-resistant structure.
The integration allows Trust Wallet users to perform cross-chain swaps involving BTC, ETH, and Binance Smart Chain (BEP20) assets, addressing the complexities of bridging assets and reducing dependence on fiat onramps. By embedding cross-chain swap functionalities directly into the wallet, the integration provides a streamlined user experience, eliminating the need for users to navigate the often risky process of bridging assets. This enhances asset flexibility by enabling users to swap native assets across different blockchains without relying on wrapped or bridged tokens, which typically carry additional custodial risks.
Trust Wallet now provides a wide array of swap functionalities tailored to different user needs:
- THORChain Swaps: Users can swap BTC, ETH, BSC, DOGE, and AVAX assets natively through THORChain’s infrastructure.
- 1inch Swaps: Leveraging 1inch, Trust Wallet supports interchain swaps across eight EVM-compatible chains, including Ethereum, BSC, Polygon, and Avalanche. Users can swap tokens like ETH or BNB with their corresponding ERC-20 or BEP-20 assets directly within the app, avoiding the need to connect to external dApps.
Ledger Live
Ledger Live is a leading cold storage hardware wallet that has also partnered with THORChain to introduce native cross-chain swaps within its application. This integration marks a significant milestone for Ledger, as it is the first instance of the platform incorporating a DeFi protocol to facilitate direct blockchain-to-blockchain swaps. Users can now trade assets across networks without leaving the Ledger Live app, enhancing convenience and security for cryptocurrency management. This integration bridges a significant gap in the user experience by offering decentralized, cross-chain swap functionality within a trusted hardware wallet ecosystem. It combines THORChain’s advanced DeFi capabilities with Ledger’s reputation for robust security, empowering users to conduct swaps with minimal friction.
Other benefits of utilizing THORChain for swaps include self-custody and reduced slippage. Ledger Live eliminates reliance on third-party exchanges by leveraging THORChain’s non-custodial and cross-chain liquidity protocol. This reduces exposure to risks associated with centralized exchange failures or security breaches, providing users with a secure and decentralized swapping solution. Additionally, THORChain minimizes slippage and prevents malicious activities such as frontrunning and miner extractable value (MEV) exploitation. These features are particularly advantageous for high-value transactions involving assets like Bitcoin.
The integration initially supports swaps for a range of major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), Dai (DAI), and Wrapped Bitcoin (WBTC). Additional ERC-20 tokens are slated for future inclusion, further expanding the app’s functionality. All swaps occur directly within the Ledger Live desktop app, eliminating the need for users to leave the platform, undergo KYC processes, or create new accounts.
OKX
OKX Wallet is a decentralized multi-chain wallet supporting over 60 networks and utilizing THORSwap for cross-chain swaps. Available as a browser extension and compatible with iOS/Android through WalletConnect V2, OKX Wallet currently supports Avalanche and Ethereum on mobile. By integrating OKX Wallet with THORSwap, users gain access to a versatile multi-chain wallet alongside a leading decentralized cross-chain exchange, creating a seamless experience for navigating the Web3 world.
Additionally, the OKX Wallet does not store seed phrases, private keys, or passwords, nor does it transmit them to external servers. This ensures THORSwap users can transact securely and confidently using OKX's robust security measures.
With this integration, THORSwap provides compatibility with seven browser extension wallets, two hardware wallets, keystore, and WalletConnect v2.0-compatible wallets on mobile. This broad compatibility is designed to streamline your cross-chain swapping experience, making it as straightforward as possible.
Zengo
Zengo, a leading self-custodial wallet known for its innovative approach to eliminating seed phrase vulnerabilities, also launched an in-wallet swap solution powered by THORChain. Zengo distinguishes itself as a pioneer in self-custodial wallet technology, utilizing institutional-grade multi-party computation (MPC) rather than traditional seed phrases to secure user wallets. This approach eliminates the risks associated with seed phrase management, such as phishing and unauthorized access. The wallet’s multi-chain support spans Bitcoin, Ethereum, Polygon, Arbitrum One, Optimism, Base, Dogecoin, Tezos, and thousands of other cryptocurrencies, making it a versatile tool for crypto users.
The integration of THORChain into Zengo introduces a decentralized exchange experience that is directly in the wallet. THORChain’s non-custodial design, combined with its low-slippage swaps and resistance to front-running and miner extractable value (MEV) exploitation, ensures that users enjoy efficient and transparent transactions.
THORChain-Generated Revenue
November 2024 saw a record-breaking 18 affiliates surpass $1 million in monthly volume, highlighting how THORChain's influence continues to expand across various platforms and communities as new affiliates join, each contributing their unique user base.
THORChain affiliates generated over $3 million in revenue during Q3, with Q4 poised for even greater profitability. Daily affiliate earnings averaged approximately $35,000 in Q3, with a peak of $150,000 on a single day driven by heightened market volatility. The start of Ledger integration in Q4, coupled with rising cryptocurrency prices, has propelled weekly affiliate fees to over $1 million, with Ledger and TrustWallet generating the majority of the fees. This sustained growth underscores the expanding utility of the THORChain ecosystem and its increasing value to third-party platforms.
Another important metric for affiliates is volume, as more swapping volume equates to more fees generated. The THORChain ecosystem in 2024 has demonstrated significant growth in affiliate-driven activity. Affiliates such as THORSwap, Trust Wallet, and Ledger have been pivotal in driving this expansion, with each contributing meaningfully to the platform's broader utility. THORSwap (orange on the chart) consistently led in swap volume in the early weeks but has been consistently surpassed by Trust Wallet. Surges in activity often correlate with market volatility or key integrations, such as Ledger’s entry into the network, reflected by the growing blue segment. These spikes indicate the ecosystem's capacity to respond to both external market dynamics and internal technological advancements.
Among the affiliates, THORSwap recorded the highest total swap volume in Q1 2024, generating approximately $680 million in transaction value. However, Trust Wallet experienced remarkable growth in Q4, surpassing THORSwap as the leader with a volume of $535 million. Combined, these two affiliates accounted for 73% of the total volume from the top seven contributors, showcasing their substantial influence within the network. Their dominance reflects a concentration of activity among key players, highlighting both the reliance on high-performing platforms and the potential for scaling through further diversification of affiliates.
Analyzing swap routes and liquidity fees provides further insight into the mechanics driving THORChain's ecosystem. The top three swap routes by USD volume—BTC to ETH, BTC to RUNE, and BTC to USDT—indicate user preference for high-demand trading pairs involving Bitcoin, Ethereum, and stablecoins. This trend underscores the platform's ability to facilitate liquidity for widely traded assets. Similarly, the top three routes by liquidity fees mirror these preferences, with BTC to ETH generating the highest fees, followed by BTC to RUNE and BTC to USDT. These patterns highlight the alignment between user demand and fee structures, ensuring sustained revenue streams for liquidity providers and the network.
The diversification of contributors such as OKX, ShapeShift, and Ledger further supports the ecosystem's resilience and scalability. While THORSwap and Trust Wallet remain dominant, the participation of additional affiliates reflects growing adoption and increasing decentralization within the platform. This expansion positions THORChain as a competitive player in the decentralized finance sector, particularly as integrations with hardware wallets like Ledger enhance accessibility and security for users.
Conclusion
THORChain has emerged as a critical component of the decentralized finance ecosystem, providing infrastructure that facilitates seamless cross-chain asset swaps without relying on centralized exchanges or wrapped tokens. By leveraging continuous liquidity pools and its native token, RUNE, the protocol ensures efficient liquidity management and dynamic fee adjustments. This design, coupled with its decentralized and censorship-resistant framework, has positioned THORChain as a preferred backend solution for Web3 wallets and DeFi platforms.
The protocol's success is evident in its growing adoption among major affiliates, including Trust Wallet, THORSwap, and Ledger, which have driven significant transaction volumes and revenue generation. In 2024, affiliate-driven activity has reached new heights, with daily and weekly earnings reflecting the network's expanding utility and relevance. The data underscores the value of THORChain’s ecosystem to third-party platforms, enabling them to offer secure and user-friendly cross-chain trading functionalities.
Furthermore, THORChain’s integrations with wallets, exchanges, and aggregators such as Trust Wallet, OKX, ShapeShift, and Zengo highlight its ability to adapt to evolving market needs. By embedding native asset swaps within these platforms, THORChain eliminates the risks and inefficiencies associated with centralized intermediaries and synthetic assets, fostering a more secure and streamlined trading environment. Innovations like Ledger’s integration also demonstrate the protocol's capability to enhance security and usability for retail and institutional users alike.
Looking ahead, THORChain's emphasis on decentralization, scalability, and continuous integration with emerging platforms ensures its relevance in an increasingly interconnected blockchain landscape. As it strives to become the foundational layer for decentralized finance, its robust infrastructure and affiliate-driven revenue model will likely continue to attract participants and expand its influence across the industry.
Disclaimer: This report was commissioned by Thorchain. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
THORChain is a Layer-1 protocol that enables seamless cross-chain swaps without the use of wrapped assets. Allowing native assets to be directly exchanged across different blockchains eliminates the need for centralized exchanges, such as Coinbase, and provides users with a truly decentralized trading experience. The protocol uses continuous liquidity pools (CLP) paired with its native token, RUNE, to maintain liquidity, while dynamic fee adjustments ensure efficiency based on each pool's liquidity depth.
THORChain's decentralized infrastructure has become a go-to backend solution for Web3 wallets, enabling cross-chain asset swaps directly within their user interface. These integrations allow wallets to retain users while offering a streamlined, secure trading experience. By serving as neutral, censorship-resistant swap infrastructure, THORChain not only facilitates efficient liquidity movement but also generates revenue for the protocol through two different fees. Swaps through the pools are charged a liquidity fee based on the slip the swaps cause. This swap fee goes to the LPs and nodes. Meanwhile, affiliates (like wallets) can charge an additional affiliate fee that is a basis point amount of the swap size.
Integrations and Affiliates
THORChain's revenue model centers on its function as a decentralized cross-chain liquidity network, primarily generating income through transaction fees and liquidity provision. A significant portion of THORChain's revenue comes from swapping fees. When users exchange one asset for another via THORChain, a fee—typically a small percentage of the transaction amount—is charged. This fee is shared between the network's liquidity providers and node operators. The fee structure is designed to be competitive, ensuring affordability for users while providing adequate rewards for participants. Currently, the minimum swap fee is eight basis points for a single swap (BTC -> RUNE) and 16 basis points for a double swap (BTC -> ETH).
As of Q4 2024, THORChain has achieved a cumulative trading volume exceeding $80 billion, reflecting its growing role in the decentralized finance ecosystem.
These fees are distributed among the network's stakeholders, including liquidity providers (LPs), node operators, and RUNE token holders. Over time, liquidity fees are expected to stabilize at 50% of total income as a portion of collected fees is reinvested into the reserve. This reinvestment strategy ensures continuous block rewards, securing the platform's longevity. Beyond compensating nodes, liquidity providers, and the core development team. THORChain also generates notable revenue for wallets and other affiliates that integrate the protocol into their token-swapping features. In 2024 alone, the protocol has generated approximately $20 million through this use case.
THORChain's consistent network activity can be attributed in part to its ongoing pursuit of new integrations with wallets, exchanges, and custodial services. Rather than interacting directly with THORNodes, most users access THORChain's capabilities through these third-party platforms, which help broadcast transactions to the network.
To that end, ThorChain is steadily expanding its ecosystem by integrating with a range of wallets and DeFi platforms, looking to leverage its non-custodial, native asset-swapping technology. Wallets such as Ledger, Trust Wallet, OKX, and Ctrl, alongside aggregators like ShapeShift, LiFi, and Jumper, now support native RUNE functionality and enable seamless cross-chain swaps powered by THORChain. Decentralized exchanges like OpenOcean and Rubic are also utilizing the technology. THORChain’s ultimate vision is to become the foundational layer of DeFi, seamlessly powering liquidity and cross-chain transactions across wallets, interfaces, and aggregators—so effortlessly that users remain unaware of its backend operations.
To incentivize these integrations, wallet developers can add an affiliate address and set a custom fee rate, allowing them to earn affiliate fees for each transaction processed through their platform.
These affiliate fees serve as a sustainable revenue stream for wallets integrating with THORChain, with fees being seamlessly included in each swap. Wallets have the flexibility to set their own fee structure—such as Trust Wallet, which charges 70 basis points per swap—creating opportunities for consistent income while providing users with decentralized trading features.
Another critical feature of THORChain’s infrastructure is its affiliate fee mechanism. Wallets and interfaces participating in the network can specify the asset in which they prefer to receive affiliate fees. For example, a wallet may request payouts in USDC on Ethereum. The protocol accumulates these affiliate fees until the total reaches 200 times the gas fee required for a transaction on the specified blockchain. Once this threshold is met, the protocol transfers the accumulated fees directly to the wallet interface. This system minimizes transaction overhead while ensuring efficient fund distribution.
Some of THORChain’s most prominent new and existing integrations include:
- Ledger
- Trust Wallet
- THORSwap
- THORWallet
- ShapeShift
- Xdefi
- Asgardex
- OKX Wallet
- ZenGo
- BitPay
- And more
By integrating THORChain’s infrastructure, these wallets provide users with seamless trading functionality directly within their interfaces, bypassing the need for centralized exchanges. By reducing dependency on centralized intermediaries, the protocol strengthens user security and promotes a neutral, censorship-resistant trading environment.
Trust Wallet
In 2023, Trust Wallet introduced in-app cross-chain swaps through its integration with THORChain. This update eliminates the need for fiat onramps or direct interaction with complex cross-chain protocols, allowing users to conduct seamless swaps across multiple blockchains directly within the Trust Wallet app. Thus far, the Trust Wallet address has collected $9.2M+ in fees from its THORChain partnership and is the leading affiliate by volume in 2024.
THORChain’s infrastructure addresses key user concerns by offering unparalleled convenience and security. Its approach eliminates the need for account signups or holding funds on exchanges, significantly reducing custodial risks. Key benefits include:
- Native Asset Support: Users can swap native assets directly on their respective chains, avoiding reliance on synthetic or bridged tokens.
- Privacy Protection: THORChain does not collect or store personal identifying information, ensuring user privacy.
- End-to-End Transparency: All swap transactions are publicly visible on the blockchain.
- Decentralization: Fees are distributed among THORChain liquidity providers and node operators, reinforcing the network's decentralized and censorship-resistant structure.
The integration allows Trust Wallet users to perform cross-chain swaps involving BTC, ETH, and Binance Smart Chain (BEP20) assets, addressing the complexities of bridging assets and reducing dependence on fiat onramps. By embedding cross-chain swap functionalities directly into the wallet, the integration provides a streamlined user experience, eliminating the need for users to navigate the often risky process of bridging assets. This enhances asset flexibility by enabling users to swap native assets across different blockchains without relying on wrapped or bridged tokens, which typically carry additional custodial risks.
Trust Wallet now provides a wide array of swap functionalities tailored to different user needs:
- THORChain Swaps: Users can swap BTC, ETH, BSC, DOGE, and AVAX assets natively through THORChain’s infrastructure.
- 1inch Swaps: Leveraging 1inch, Trust Wallet supports interchain swaps across eight EVM-compatible chains, including Ethereum, BSC, Polygon, and Avalanche. Users can swap tokens like ETH or BNB with their corresponding ERC-20 or BEP-20 assets directly within the app, avoiding the need to connect to external dApps.
Ledger Live
Ledger Live is a leading cold storage hardware wallet that has also partnered with THORChain to introduce native cross-chain swaps within its application. This integration marks a significant milestone for Ledger, as it is the first instance of the platform incorporating a DeFi protocol to facilitate direct blockchain-to-blockchain swaps. Users can now trade assets across networks without leaving the Ledger Live app, enhancing convenience and security for cryptocurrency management. This integration bridges a significant gap in the user experience by offering decentralized, cross-chain swap functionality within a trusted hardware wallet ecosystem. It combines THORChain’s advanced DeFi capabilities with Ledger’s reputation for robust security, empowering users to conduct swaps with minimal friction.
Other benefits of utilizing THORChain for swaps include self-custody and reduced slippage. Ledger Live eliminates reliance on third-party exchanges by leveraging THORChain’s non-custodial and cross-chain liquidity protocol. This reduces exposure to risks associated with centralized exchange failures or security breaches, providing users with a secure and decentralized swapping solution. Additionally, THORChain minimizes slippage and prevents malicious activities such as frontrunning and miner extractable value (MEV) exploitation. These features are particularly advantageous for high-value transactions involving assets like Bitcoin.
The integration initially supports swaps for a range of major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), Dai (DAI), and Wrapped Bitcoin (WBTC). Additional ERC-20 tokens are slated for future inclusion, further expanding the app’s functionality. All swaps occur directly within the Ledger Live desktop app, eliminating the need for users to leave the platform, undergo KYC processes, or create new accounts.
OKX
OKX Wallet is a decentralized multi-chain wallet supporting over 60 networks and utilizing THORSwap for cross-chain swaps. Available as a browser extension and compatible with iOS/Android through WalletConnect V2, OKX Wallet currently supports Avalanche and Ethereum on mobile. By integrating OKX Wallet with THORSwap, users gain access to a versatile multi-chain wallet alongside a leading decentralized cross-chain exchange, creating a seamless experience for navigating the Web3 world.
Additionally, the OKX Wallet does not store seed phrases, private keys, or passwords, nor does it transmit them to external servers. This ensures THORSwap users can transact securely and confidently using OKX's robust security measures.
With this integration, THORSwap provides compatibility with seven browser extension wallets, two hardware wallets, keystore, and WalletConnect v2.0-compatible wallets on mobile. This broad compatibility is designed to streamline your cross-chain swapping experience, making it as straightforward as possible.
Zengo
Zengo, a leading self-custodial wallet known for its innovative approach to eliminating seed phrase vulnerabilities, also launched an in-wallet swap solution powered by THORChain. Zengo distinguishes itself as a pioneer in self-custodial wallet technology, utilizing institutional-grade multi-party computation (MPC) rather than traditional seed phrases to secure user wallets. This approach eliminates the risks associated with seed phrase management, such as phishing and unauthorized access. The wallet’s multi-chain support spans Bitcoin, Ethereum, Polygon, Arbitrum One, Optimism, Base, Dogecoin, Tezos, and thousands of other cryptocurrencies, making it a versatile tool for crypto users.
The integration of THORChain into Zengo introduces a decentralized exchange experience that is directly in the wallet. THORChain’s non-custodial design, combined with its low-slippage swaps and resistance to front-running and miner extractable value (MEV) exploitation, ensures that users enjoy efficient and transparent transactions.
THORChain-Generated Revenue
November 2024 saw a record-breaking 18 affiliates surpass $1 million in monthly volume, highlighting how THORChain's influence continues to expand across various platforms and communities as new affiliates join, each contributing their unique user base.
THORChain affiliates generated over $3 million in revenue during Q3, with Q4 poised for even greater profitability. Daily affiliate earnings averaged approximately $35,000 in Q3, with a peak of $150,000 on a single day driven by heightened market volatility. The start of Ledger integration in Q4, coupled with rising cryptocurrency prices, has propelled weekly affiliate fees to over $1 million, with Ledger and TrustWallet generating the majority of the fees. This sustained growth underscores the expanding utility of the THORChain ecosystem and its increasing value to third-party platforms.
Another important metric for affiliates is volume, as more swapping volume equates to more fees generated. The THORChain ecosystem in 2024 has demonstrated significant growth in affiliate-driven activity. Affiliates such as THORSwap, Trust Wallet, and Ledger have been pivotal in driving this expansion, with each contributing meaningfully to the platform's broader utility. THORSwap (orange on the chart) consistently led in swap volume in the early weeks but has been consistently surpassed by Trust Wallet. Surges in activity often correlate with market volatility or key integrations, such as Ledger’s entry into the network, reflected by the growing blue segment. These spikes indicate the ecosystem's capacity to respond to both external market dynamics and internal technological advancements.
Among the affiliates, THORSwap recorded the highest total swap volume in Q1 2024, generating approximately $680 million in transaction value. However, Trust Wallet experienced remarkable growth in Q4, surpassing THORSwap as the leader with a volume of $535 million. Combined, these two affiliates accounted for 73% of the total volume from the top seven contributors, showcasing their substantial influence within the network. Their dominance reflects a concentration of activity among key players, highlighting both the reliance on high-performing platforms and the potential for scaling through further diversification of affiliates.
Analyzing swap routes and liquidity fees provides further insight into the mechanics driving THORChain's ecosystem. The top three swap routes by USD volume—BTC to ETH, BTC to RUNE, and BTC to USDT—indicate user preference for high-demand trading pairs involving Bitcoin, Ethereum, and stablecoins. This trend underscores the platform's ability to facilitate liquidity for widely traded assets. Similarly, the top three routes by liquidity fees mirror these preferences, with BTC to ETH generating the highest fees, followed by BTC to RUNE and BTC to USDT. These patterns highlight the alignment between user demand and fee structures, ensuring sustained revenue streams for liquidity providers and the network.
The diversification of contributors such as OKX, ShapeShift, and Ledger further supports the ecosystem's resilience and scalability. While THORSwap and Trust Wallet remain dominant, the participation of additional affiliates reflects growing adoption and increasing decentralization within the platform. This expansion positions THORChain as a competitive player in the decentralized finance sector, particularly as integrations with hardware wallets like Ledger enhance accessibility and security for users.
Conclusion
THORChain has emerged as a critical component of the decentralized finance ecosystem, providing infrastructure that facilitates seamless cross-chain asset swaps without relying on centralized exchanges or wrapped tokens. By leveraging continuous liquidity pools and its native token, RUNE, the protocol ensures efficient liquidity management and dynamic fee adjustments. This design, coupled with its decentralized and censorship-resistant framework, has positioned THORChain as a preferred backend solution for Web3 wallets and DeFi platforms.
The protocol's success is evident in its growing adoption among major affiliates, including Trust Wallet, THORSwap, and Ledger, which have driven significant transaction volumes and revenue generation. In 2024, affiliate-driven activity has reached new heights, with daily and weekly earnings reflecting the network's expanding utility and relevance. The data underscores the value of THORChain’s ecosystem to third-party platforms, enabling them to offer secure and user-friendly cross-chain trading functionalities.
Furthermore, THORChain’s integrations with wallets, exchanges, and aggregators such as Trust Wallet, OKX, ShapeShift, and Zengo highlight its ability to adapt to evolving market needs. By embedding native asset swaps within these platforms, THORChain eliminates the risks and inefficiencies associated with centralized intermediaries and synthetic assets, fostering a more secure and streamlined trading environment. Innovations like Ledger’s integration also demonstrate the protocol's capability to enhance security and usability for retail and institutional users alike.
Looking ahead, THORChain's emphasis on decentralization, scalability, and continuous integration with emerging platforms ensures its relevance in an increasingly interconnected blockchain landscape. As it strives to become the foundational layer for decentralized finance, its robust infrastructure and affiliate-driven revenue model will likely continue to attract participants and expand its influence across the industry.
Disclaimer: This report was commissioned by Thorchain. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
