THORChain, a cross-chain liquidity network, has added new decentralized finance (DeFi) capabilities support for Dogecoin (DOGE), now users can swap their Dogecoin for native BTC, ETH, BNB and stablecoins.
With the implementation of the new feature, users can now use THORSwap, a non-custodial decentralized exchange, to swap DOGE or earn yields on their DOGE holdings as of this week.
Users can exchange DOGE for native assets including Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), Litecoin (LTC), and stablecoins like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD). Without the need to bridge, wrap, or peg assets, any exchanges between THORChain assets, including DOGE, may be done in one step.
A liquidity pool for DOGE has been built, according to a THORChain developer. The pool allows DOGE liquidity providers to earn interest on their deposits by charging trading fees. Depositors, like other THORChain liquidity providers, have impermanent loss protection dependent on the amount of time each deposit is held.
The connection enables DOGE “a new degree of self-sovereignty,” according to Chad Barraford, THORChain’s technical lead, by allowing users to enter and exit the market without having to comply with Know Your Customer (KYC) laws.
Dogecoin’s expanded DeFi capability, according to Barraford, “changes the fundamentals of the asset as a store of value and as a means of trade.”
THORChain gathered nearly $400 million in total value locked, or TVL, at its height in November 2021, indicating huge early interest in cross-chain exchanging options.
THORSwap had just completed a $3.75 million private token sale funded by IDEO CoLab Ventures, Sanctor Capital, Nine Realms, 0xVentures, and others a month prior.
Dogecoin’s adoption
Tesla merch buyable with Dogecoin— Elon Musk (@elonmusk) January 14, 2022
DOGE became well-known in early 2021 when key influencers, like Elon Musk, praised the memecoin on social media.
DOGE became an acceptable form of payment for Dallas Mavericks tickets and, more recently, Tesla products as a result of this process. According to CoinMarketCap, it is now ranked 11th in terms of total market capitalization, with a value of $21.8 billion.
