Key Takeaways:
THORChain has deployed its v3.18 protocol upgrade, a significant update that includes 51 merged requests and introduces the framework for Protocol-Owned Liquidity (POL) and a new dynamic fee structure. The release, announced on May 12, focuses on enhancing the protocol's economic sustainability and is a key step toward future integrations.
The upgrade frames liquidity ownership and adaptive fees as core economic advancements for the decentralized liquidity network. "Protocol upgrade v3.18 shipped with 51 merged requests, introducing foundations for Protocol-Owned Liquidity and the ADR-026 Dynamic Fee Model," THORChain said in an official announcement, framing the release as a core economic upgrade for the network.
The new POL system allows the protocol to direct a configurable portion of its system income into a dedicated reserve. This reserve can then be used to deploy RUNE liquidity into selected pools under the control of network governance, reducing the protocol's reliance on mercenary capital. The upgrade also introduced the ADR-026 Dynamic Fee Model, which allows THORChain to adjust minimum L1 slip fees based on real-time activity and revenue, moving away from static fee assumptions. However, this feature will ship disabled by default and must be progressively enabled through a future governance vote.
This upgrade is a foundational step for the network's long-term health, aiming to create a more stable and sustainable liquidity environment. By owning its own liquidity, THORChain can better weather market volatility and ensure deeper markets for traders. The release also included groundwork for future integrations with other networks, including Monero, TAO, and DOT, signaling a clear roadmap for continued cross-chain expansion.
This article is for informational purposes only and does not constitute investment advice.
