My thoughts on the current $RUNE situation:

Validators have paused Thor Lending repayments. This doesn’t affect Thorchain’s cross-chain DEX operations... only the lending repayment feature is impacted.

Why the pause? Repayments mint $RUNE (to buy back collateral), which adds selling pressure on $RUNE. This could scare loan-holders into repaying faster, creating a cycle where more $RUNE gets minted, sold, and depresses the price even more.

The concern here is a potential run on $RUNE redemptions, which could overwhelm the system.

Could it happen? Thor Lending is small compared to the rest of Thorchain, so it might handle a full run right now. But if Bitcoin experiences a large price increase (e.g., $250K, $500K, or even $1M), the system would need to mint significantly more $RUNE to redeem collateral at those prices. This could push the system beyond its limits.

The pause seems like the right move to protect the overall network. It gives time to restructure lending on Rujira, the upcoming side-chain DeFi app for Thorchain. Cross-chain DEX operations are still profitable and running smoothly.

I support this decision, it’s smart to prioritize system stability and safety. What do you think? Are you buying the dip?
#RUNE #RUNE