The fee structure of the blockchain platform determines the trading fee of THORChain (RUNE). The cost depends on the amount of data and processing resources utilized by the transaction. The network is built on the Binance Smart Chain network, thus its transaction fees are paid in Binance Coin (BNB), the network’s native cryptocurrency. When a user carries out a trade on the network, it is processed by the network’s nodes. These nodes are responsible for executing smart contracts, changing the network’s state, and are compensated with BNB for their efforts. Transaction fees are calculated based on the number of computing resources exhausted by the exchange. The core principle is that its validator nodes monitor and operate addresses (vaults) on all connected external blockchains such as BTC, ETH/ERC20, BCH, LTC, and DOGE. Also, monitor the accounting of all native RUNE in its blockchain, via a decentralized on-chain fashion. The average trading cost on the Binance Smart Chain network is about 0.001 BNB, which is approximately a few pennies in USD.
Usually, an operation in a smart contract expends a particular quantity of gas, and the exchange fee is based on the overall amount used for the process. Users must remember that the transaction cost of THORChain can change over time, therefore they should check current costs before doing a transaction on the network.
How it works
The network employs a notion known as “gas” to estimate the resources needed to run a transaction. Usually, an operation in a smart contract expends a particular quantity of gas, and the exchange fee is based on the overall amount used for the process. The precise transaction cost may differ depending on factors such as network congestion, gas prices, and the complexity of the smart contract being executed. The average trading cost on the Binance Smart Chain network is about 0.001 BNB, which is approximately a few pennies in USD.
Costs for Slippage
There is a net cost of 0.02 RUNE for every activity in the network including swaps, adding/removing liquidity, etc. Slippage happens while performing swaps that are asymmetrical LP deposits or withdrawals. These fees are usually deducted from an outgoing asset, so users do not have to pay them directly from their wallets.
Inbound charges
On-chain transactions with specially written instructions are used to connect with THORChain. As a result, the incoming transaction charge is always deducted from a user’s wallet. To deposit ERC-20 USDC to their THORChain vault address, a user must have ETH in their wallet to pay the inbound gas fee. This inbound transaction also applies to the withdrawal order from the Liquidity Pool (LP). Because this withdrawal instruction is also an on-chain transaction, the user’s wallet will need to be emptied to cover the associated gas expenses. The withdrawal instruction transaction for symmetrical and RUNE-asymmetrical LPs is required to originate from the THORChain blockchain (gas fees must be paid in native RUNE), whereas asset-asymmetrical LPs will get it from the asset blockchain.
Outbound charges
When a user obtains an asset from the blockchain through a swap or LP withdrawal, it is another on-chain transaction from one of the network’s addresses to the wallet. This occurs when a user receives an item from the blockchain. The network will mechanically deduct an amount from the outgoing asset equal to a percentage of it to pay for the real gas fee that is necessary for this transaction.
Users are required to keep in mind that the THORChain transaction cost may fluctuate over time. As a result, users are advised to check the current charges before conducting a transaction on the network. In addition, fees may be associated with particular transactions if they involve the utilization of particular smart contracts or complex network activity.
