Development on Thorfi on Thorchain has been suspended till further notice. Thorfi has been a much anticipated update within the Thorchain ecosystem, it is supposed to give the protocol the ability to - collaterize assets, Lending and -create an algo Stable coin(TOR) amongst other things.
But the matter of algo Stable currencies at this time is a very controversial matter after seeing what happened to UST, most people are skeptical AF! And who’ll blame them? certainly not me. My confidence in algo stable coin stems from my experience and exposure to HBD, and only HBD does it like HBD.
Sadly only few hundreds of the millions of people in crypto know about HBD.
TOR is designed to mitigate risks associated with mint burn mechanism feature present in most algo stable coins and that caused the crash of UST, but in theory, no real life testing, if it breaks, crypto will risk another epic LUNA story.
I’m not exactly ready for that to happen I don’t know about you. Although, the devs are confident in the code and say it’s fail proof. The thing is, no matter how perfect the system seems to be to the devs, the risk is too much in this moment. Thorchain can take this time to focus on growing its present strength than carrying on another weight as heavy as Thorfi as a whole.
So yeah, a poll was taken on Twitter and it was decided that development on Thorfi will be suspended and the focus will be on integrating more L1 chains and strengthening security. It’s sad to see that so many people are of the opinion that algorithmic stable coins don’t work.
But to think of it, if we don’t put theories to real life test, how do we innovate? This is another part where Hive once again is ahead of the game, HBD has been in operation for 6 years, first as SBD, went through several phases of iteration and has become the best of the pack, it didn’t happen over night.
Even the creator of SBD Dan Larimer attested to the fact that HBD was far better than what he built and what makes HBD sound. Truth is that as much as I’ll love HBD to continue being the best algo stable coin out there, the world can do with a handful of them.
But here we are, people are scarred from UST and scared to innovate. It’s different if people are being cautious, caution and fear are not the same things. People are scared because most won’t do their own research and are now stifling growth. If people were being cautious, we wouldn’t be seeing an algo stable with zero years of real life testing growing to reach over $500million in 2 months of launch. Don’t believe me?
USDD is an algo stable coin on Tron Blockchain, if you’ve been here long enough, you’d know that Tron is a super centralized Blockchain, the uniqueness of an algo stable coin is its decentralization, if the core of its protocol is not decentralized, if one entity can take control of that protocol, then it is no different from USDC and USDT. But yeah $500million in TVL. USDD is a decentwalizeeeed algorithmic steeble coin.
Now fear is the order of the day, it’s no wonder fear is dominating the fear and greed sentiment graph lol. This bear market is going to show us a lot of fluff projects and fluff people. Sometimes one has to wonder, do people really want decentralization or just want to get money regardless of whatever. 😒
Anyway, so Thorchain is going to focus on bringing in more liquidity, scaling L1 integrations and security for now. While Thorfi might be an excellent addition to Thorchains ecosystem, it is important to consider the safety of the fundamental foundation and prioritize it. What I’ll love to see is a testnet where Thorfi is battle tested before bringing it on in the mid term.
Share your thoughts?
Thanks for reading