Network based systems

THORChain suffers from a network outage, but why did RUNE see an increase

THORChain suffered two consecutive exploits on its ETH router. The first took all the ETH from the system via an attack contract that was in front of the router. The second took all the economically significant ERC20s via an attack deal that was behind the router.

Well, the DeFi protocol has come a long way. March 10 was the third largest project according to Messari. But that doesn’t guarantee a long, smooth ride.

Apologies for the inconvenience?

THOR chain experimented a 6-hour network outage in the early hours of March 19. However, he has since recovered. And all pending transactions have been listed in the following blocks. That wouldn’t be a complete surprise given the platform’s immense traction in 2022. In fact, the planned hard fork for the following Monday was to be delayed six hours due to the breakdown.

THORChain tweeted that its network has recovered from a brief outage and no funds are currently at risk.

Chad Barraford, the lead developer of THORChain, said in a tweet on March 18 that the THORChain network experienced an outage, preventing it from producing new blocks. However, the main developers published a repair.

According to the root cause, the protocol updated the same on March 19, it read

Since the error was in the mempool and not the ledger, a fix was possible. The node that offered the block just had to run the updated software to handle the error and continue. “Thus, no hard-fork is needed,” the team added.

Nevertheless, the network was soon online. That said, it had to catch up with the large number of pending transactions amid the outage. Moreover, it pushed the team in the state machine to maximum operation – 5000 tx/block at 833 tx/sec.

Source: Twitter

The native token, RUNE, has seen an impressive rise despite this hurdle. This was standing by 16% in just 24 hours; it traded just below the $13 mark. The community itself supported the protocol regardless of the noise.

Ambiguous Metrics

It can be noted that the volume increased after the introduction of the synths in the system. In reality, synth volume/TVL increased by 700%.

(Synths are derivative assets existing on the Thorchain chain (based on Tendermint/Cosmos) and are backed by L1 tangible assets in the liquidity pools.)

This surge was quite evident in the chart below which also showed a similar trend for development activity.

Source: Santiment

According to the Stochastic Oscillator, THORChain’s crypto was oversold (.

Source: Santiment

As seen above, the negative sentiment on the platform dominated the counterparty. This explained the sales attribute mentioned above. Could this become an obstacle later for the protocol and its native token? Well, that remains to be seen.



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