This is the first chapter of the story that tells how THORChain is on course to become the superior alternative to centralized services in offering passive interest on the main L1 assets of the crypto world!

Right now the validator nodes of the network are voting to activate the new Saver Vaults function on assets supported by THORChain such as $BTC, $ETH, $BNB, $AVAX, $ATOM, etc. which will allow users to earn yield without exposure to $RUNE.

The vote is live and visible on: https://thorchain.net/network/votes 

Message from Pluto (9R) of Nine Realms on the official Discord channel.

Any of us are looking for opportunities to make their cryptocurrencies profitable.

Up until now the yield on native $BTC has been unique to CEX like Celsius (RIP), Binance, Coinbase, etc. which thanks to this have seen billions of dollars in crypto capital managed by these platforms.

Becoming liquidity providers in traditional pools can be complicated and inconvenient for many novice users. What THORChain aims to do with its Savers Vaults solution is to simplify this process.

The Savers Vaults will fully exploit the possibilities of synthetics already active on the network. To date, the only use of synthetics for the average user has been to be able to buy and expose themselves to expensive chains in terms of gas fees such as Ethereum, saving money on each transaction thanks to the payment of the fees on the THORChain network. 

After the upgrade, synthetics can be deposited into safes to start earning up to 50% of that particular asset's traditional pool yield, in the case of our example it will be $BTC.

Expecting the demand for this new feature that will allow anyone to earn $BTC on $BTC, we can expect the cap for the utilization of synthetics will soon be reached, being now set at 30% per asset. What solution to adopt then?

Here comes the Protocol Owned Liquidity (POL), which consists in the active participation of the capital of the reserves of THORChain in the various pools adding new liquidity that allows to increase the depth of the pools, thus allowing to mint new synthetics.

To prevent pools from being manipulated by large deposits and withdrawals, users will have to pay slip fees when entering and exiting the savers vaults.

Simplified summary of the steps to take to use the vaults summarized in a Tweet from the official THORChain account.

Limitations:

• No Saver Vault for $RUNE and stable coin at the moment;
• Deterministic price no longer fixed at 3x non-RUNE TVL, but variable between 2 and 3x;
• Max cap for synthetic use and consequently Savers Vaults.

Benefits:

• Real Yield on all Layer 1 tokens available on THORChain without more forced exposure at the price of $RUNE;
• As the use of synthetics increases, pool depth will increase, reducing slippage paid for swaps;
• Increase in trading volume and therefore in fees divided between Liquidity Providers, Savers and Node Operators;
• Possibility of implementing orderbooks in the near future.

Graph found on CT. If you have the original resource, please help me adding it in the comments.

It will be very interesting to see how the addition of this feature will impact the price of $RUNE. In general, I am personally very bullish about this new update, considering that decentralized Yield is the holy grail of all crypto lovers.

The two cases are:

• Our Joe withdraws his $BTC from the Saver Vault → selling pressure on $RUNE;
• Our Joe deposits his $BTC in the Saver Vault → buying pressure on $RUNE;

We therefore hope that the "liquidity black hole" generated by this THORChain update will create a continue loop of deposits, from people looking for real yield on their $BTC.

Thanks to the team of LP University for all the content they always make available to the community!

"NEVER ENOUGH HOPIUM"

CT: @mifune0x

I recommend, if you don't have a Ledger, to buy it on the official website clicking on my link.