The chain of exchange between the private currency and the mainstream encrypted asset was further expanded with the issuance of the 3.20 version of THORchain. The company disclosed that the new version had been originally used to support the exchange between Monero (XMR) and Zcash (ZEC) and that users could exchange them directly with Bitcoin, the Inn and the Stabilization Currency, without having to use the encapsulation assets and without having to hand them over to a centralized platform for hosting.
Support XMR and ZEC Native Exchange
Prior to this, XMR and ZEC holders would normally have to rely on the Centralized Exchange, hosting services, or through additional steps of transit in order to enter the wider encryption market. As a result of this upgrade, both types of private currency can be directly converted by agreement.
This means that users do not need to create platform accounts or convert XMR or ZEC into other intermediate assets before entering BTC, ETH or stabilizing the currency market. The transaction path has been further shortened for users with an emphasis on hosting.
XMR Alternatives after Decline
In its bulletin, THORchain mentions that Monero has been subjected in recent years to some of the centralised trading platforms and has been limited in its access to the mainstream encryption market. This access provided an alternative route for XMR users to convert through primary assets and self-custody, rather than first refilling the exchange.
Zcash's addition also allowed THORchain to extend its original cross-chain convertibility to a private currency track. Previously, there had been relatively limited access options for decentrization in this area.
The new version adds both a stable currency and a liquidity function.
In addition to private currency support, the 3.20 version also introduced the protocol's own liquidity (POL) and the new Stable Reserve. According to the disclosure, Stable Reserve supports the exchange of stable currencies without a liquidity charge; POL provides a new way of moving its own capital within the network.
Meanwhile, Thorchain also restored support for Solana, Base and BNB. Overall, the upgrade not only increased the range of convertible assets, but also simultaneously expanded the ability of the agreement to manage liquidity and multi-chain coverage.
THORCHAIN currently supports the cross-chain conversion of primary assets such as bitcoin and the Taifeng. With the inclusion of XML and ZEC, the protocol ' s original cross-chain model further covered the previously less centrally accessible private currency market.
Additional information:Original from the project announcement issued by Chainwire, with the main source of information disclosed by the THORchain community.