ThorSwap with a Ledger Nano. No ETH gas!

allcapsonezero in #hive-167922 • 3 years ago

About a month ago, I figured out how to store native Rune on my Ledger Nano.. Since then, I have been using the ThorSwap app quite extensively.

source

Security

I did not want to store my Rune directly on my XDEFI wallet, or Trust wallet, as I don't feel my funds are safe enough. So, I went through the process of figuring out how to store RUNE safely on my Ledger Nano(which you can read by clicking the link above).

I was originally a little bit upset at the Ledger Nano for not allowing me to make an account the includes multiple chains to interact on ThorSwap like XDEFI or TrustWallet will allow you to do. On Ledger, each token has its own account which means making crazy trades on ThorSwap isn't possible.

The Beauty of THORChain

After Using ThorSwap for a while, I have come to find out that you don't need to ever trade your RUNE into another crypto. If you want exposure to BTC, ETH, Doge, BNB, BUSD, USDC (or any other project that you can find on ThorSwap) you can do so by entering an LP with 100% Rune. This means that I can do so from the safety of my Ledger Nano wallet!!!

(Cover, Thor #1, Marvel Comics 2007, Oliver Coipel)

Function and Security

By using the Ledger Nano on ThorSwap, you do sacrifice a bit of function for Security, but I believe this peace of mind is worth it. I cannot actually swap into other projects this way, but I can gain exposure to whichever project I want exposure to.

If I want exposure to BUSD, USDC and BTC. I can enter those three pools by simply throwing my RUNE into those three pools (effectively selling half of my RUNE for the other asset). When it comes time to withdraw, I, again, withdraw 100% RUNE (effectively buying back the RUNE with the other asset) and exit the Liquidity Pool. I collect RUNE by LP'ing in the process!

I don't get to hold the BTC, which doesn't bother me at all. It is a small sacrifice to pay for the security of holding all of my assets safely on my Ledger Nano. Holding RUNE doesn't bother me at all. In fact, I would like to hold more!

Bonus Points!

The clincher is gas. RUNE gas is currently really cheap. 0.02 Rune is the going rate (around 8 cents). I can pool with Native ETH or any asset on the Ethereum blockchain (or any other blockchain) on ThorSwap for 8 cents worth of gas. This is a game changer!

As you can see, at the top we are adding 50% ETH and 50% Rune to the pool. The gas is being charged on both ends. 8 cents in RUNE gas and $39.69 in ETH.

Check out what happens when I enter the pool with 100% Rune.

That is right!!! 8 cents. ThorChain effectively rids us of ETH gas fees for LP'ing with ETH assets.

Cost effective, safe and secure

Playing around on ThorSwap has really made me a believer in the THORChain project. Never have I been able to seamlessly and safely hold my crypto and gain exposure to whatever asset I want exposure too. Yes, you need to want to be holding RUNE all the time (which I find to be a really good idea).

Holding funds on ThorSwap is my new favourite savings account. I hold RUNE when I am bullish. I hedge my bets when I am bearish. Never do I leave the security of my Ledger Nano. Yes, I do limit myself somewhat with this strategy, but for now... Rune is where I want to be anyway.

I will write about how I plan to work my cross chain swaps when the time comes (it's easy and it costs 8 extra cents).

EDIT *** It is worth noting that on the Ledger Nano that the gas fee will appear to be 5.0 Rune. This is a bug on the Nano, gas will only cost what it tells you it will cost on your ThorSwap transaction... currently 0.02 Rune. I have done this and confirmed that gas costs are not 5.0 Rune.

Exchange images taken from ThorSwap.

#leofinance #vyb #pob #thorchain #defi #bht

3 years ago in #hive-167922 by allcapsonezero

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williamtboy 3 years ago

Most important one to use a wallet that's secure to avoid hacking because hackers are now hacking wallets.

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allcapsonezero 3 years ago

Indeed. The Ledger is choice for this reason. Even if they hack my wallet... they now need to break into my house to confirm the transaction. It's not perfect... but it is 100000x more secure to be sure.

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williamtboy 3 years ago

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shawnlauzon 3 years ago

Awesome, I’m going to try this out today

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allcapsonezero 3 years ago

Let me know if you got it figured... If you need any help, let me know... the one issue with ThorChain is that it is still very techy and not user friendly.

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behiver 3 years ago

ThorChain is a gamechanger, I wonder how it is still flying under the radar. Well, time to accumulate some more.

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anarchistpreneur 3 years ago

100%. I have been putting off Thorchain since I thought I basically knew how it worked and wanted to figure out some of other newer ecosystems first, but damn, wish I had looked more closely into it from the beginning. I am def putting some money into RUNE, I am just waiting got them to add Monero (and also haven Protocol), so I can do a BTC/XMR LP. Any idea when XMR is coming on ThorSwap?

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allcapsonezero 3 years ago

It is a good time to get into Rune. We could go a bit lower if BTC trends down a bit more... but I think RUNE is pretty close to the bottom. 3.50 is a hard bottom.

Not sure when XMR or XHV gets their pools. The caps need to go up, so it might be mainnet. I think they are hoping for Q1/Q2 for mainnet... but I really don't know. I just know that it is coming.

I wrote about using ThorChain with XDEFI too. It is super functional and awesome... just not as secure. I am digging just playing the Rune side with the ledger.

Thanks for the reblog. It was cool seeing my post in my feed.

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anarchistpreneur 3 years ago

No prob, I like to share quality content brother. Thanks, made a note of your price floor prediction, and I am gonna sit down and decide on the size of and entry point of my positions in RUNE and LUNA this week. And then I am done entering new projects! ha ha.

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allcapsonezero 3 years ago

The price is right, that is for sure!

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emaxisonline 3 years ago

Excellent article for a newbie like me.

The security issue is a big concern and for that you have a hardware wallet and you connect it with keystore app. But, what about those who don't have any hardware wallet. Things gets nasty when metamask kinda wallets get compromised and it happens quite often.

Awaiting you response. Thanks.

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jfang003 3 years ago

Oh that sounds like an interesting way to pool with ETH. I guess it will do everything internally but getting rid of ETH fees is pretty amazing. However I think there are only certain pools they support right? Pooling into a illiquid pool and removing the ETH fees seems like a bad idea for the platform.

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allcapsonezero 3 years ago

I left a link up top that will take you to ThorSwap. There is over $34million of liquidity in the ETH/Rune pool right now. There are quite a few ERC20 tokens supported as well with half a million to a few million in liquidity. There are still caps on how much liquidity they will allow as they are still testing things out... but as this thing grows it should be a one stop shop where all you need to do is hold RUNE and move it around depending on the market. It really is a fascinating project. It is like having money on binance 3 years ago... but now you hold your own keys and still have the ability to move and swap assets. I can wait for WLEO to migrate over to THORChain.

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dagger212 3 years ago

RUNE. Just adding a comment so I'm sure I can find this again. It looks like I actually voted on it when you wrote it but I've obviously already forgotten about it. This means I can check back in my comment history and find it.

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anarchistpreneur 3 years ago

Fantastic info! The thing with being able to deposit just RUNE into the LP and have it auto-convert by selling half for the other pair is AWESOME, especially with ETH, as it saves a ton on on gas fees! If I do that by adding RUNE to the BTC/RUNE pairing, when I want to withdraw, do I have to be paid out in 100% RUNE, or can I do 50% RUNE + 50% BTC payout once I remove liquidity? I dont mind buying a bunch of RUNE and using it to simplify adding the initial liquidity to the pairs I want, but eventually I do want to be paid the LP profits I have earned in extra BTC and not solely in RUNE.

Also, for the RUNE coin itself, is it just for governance, or does it pay holders the trading fees? I know that the APR is about 27% right now, but wasnt sure if that came from trading fees, simply a reserve of RUNE that has been reserved to pay for staking rewards.

GREAT article man, the screenshots made it very simple to follow.

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allcapsonezero 3 years ago

Thanks!

In order to be able to withdraw BTC, you would need to deposit some BTC in. Could be 99% - 1%... but this does mean you are paying gas on both chains. An easy way is just to LP on the RUNE side and as RUNE gains on other coins (I think this will happen in 2022) you can just slowly take profits and trade RUNE for other coins of interest.

Although, setting up an XDEFI wallet with all chains you are into is pretty easy and you could get some good LP's going that way. I am on the THORCHAIN LP UNiversity discord channel and it is full of good info and trading stategies. (ie. go into RUNE-BUSD with 100% rune on a downturn... at the bottom, withdraw more RUNE than you put in... then deposit 99% BUSD, 1% RUNE and buy the dip and gain rune all the way up... withdraw as RUNE).

I am pretty sure the APR comes from fees. I am not sure how big RUNE will be as far as THORChain mainnet will be concerned... simply being the bond / security of the network as well as every trading pair is extremely bullish for the token. Think $10 Billion in non RUNE locked on chain. That means $30 Billion in Rune is locked up on chain (Which would price RUNE at $60 is all 500,000,000 tokens are in circulation... which they are not.) That is not a lot of money to be locked up in DEFI. Once mainnet hits it should get really interesting. Financial advise... lol.

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anarchistpreneur 3 years ago

Ah damn, that sucks that you can't withdraw half your liquidity as BTC, I thought when you did a 100% RUNE liquidity pool deposit that it was essentially doing an auto-trade for half your RUNE into other BTC as a sort an internal swap and thats how it avoided gas fees, but it sounds like no swap actually occurs, and it just puts you down for having 50% of your liquidity pool in BTC on paper. Damn, if they could figure out a way to do it where you can withdraw BTC/the other asset in the pair, upon removing liquidity that would be magical, ha ha.

I will have to continue reading up on it though, currently researching Thorchain and LUNA. LUNA is brilliant, it uses the same mint and burn system that Haven Protocol does, it just lacks privacy.

Damn, I am investing in too many projects, theres just too much progress happening so quickly!

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