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Dogecoin is finally coming into decentralized finance (DeFi). This has been made possible through the recent integration of DOGE by ThorChain. DOGE holders can now swap their Dogecoin for other coins or stake the meme coin to generate yields.
To support this DeFi initiative, ThorChain has already launched a native Dogecoin liquidity pool.
Native DOGE liquidity pool on ThorChain
ThorChain is a cross-chain liquidity protocol that will bring a wide range of DeFi capabilities to Dogecoin. The offering went live earlier this week, and it allows users to swap DOGE or generate yields through the THORSwap DEX.
Welcome to DeFi, $DOGE!
The native $DOGE pool is now live.
Liquidity will deepen significantly throughout the week. pic.twitter.com/nyIXsgkTHp
— THORChain #LUNAISCOMING (@THORChain) January 17, 2022
DOGE holders can now swap the meme coin for other native coins such as Bitcoin, Ethereum, Binance Coin and Litecoin. Stablecoins such as Tether, USD Coin and Binance USD will also be possible.
“For years, DOGE has stood still while DeFi exploded in other ecosystems. Today that changes, as DOGE reaches a new level of self-sovereignty by being able to enter and exit without being KYC’ed,” said ThorChain’s technical lead, Chad Barraford. He added that this offering would promote DOGE as both a medium of exchange and a store of value.
The DOGE liquidity pool will operate similarly to the other pools on ThorChain. Depositors to the pool will benefit from impermanent loss protection depending on the duration of each deposit. The pool has already attracted much interest, given that on January 19, around 44 million had been contributed, with the annual percentage yield (APY) standing at 15%.
Growth in ThorChain
The ThorChain network has been recording notable growth over the years. Activity on the network peaked in November 2021, when the total value locked (TVL) surpassed $400 million. At the time, there was increased interest in cross-chain swaps.
In October, ThorChain raised $3.75 million from a private token sale. Some of the leading venture capital firms supported the sale, including Sanctor Capital, Nine Realms, IDEO CoLab Ventures, 0xVentures, etc.
The growth of this network in 2022 is significant, given that it suffered from several hacking attacks in 2021. Two major hacking attacks led to significant losses, but the network restored its operations through its treasury fund.
To learn more about this token visit our Investing in ThorChain guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.