> For the complete documentation index, see [llms.txt](https://docs.thorchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thorchain.org/technical-documentation/thorchain-finance.md).

# THORChain Finance

THORChain Finance - A comprehensive overview of financial primitives and mechanisms within the THORChain ecosystem

THORChain Finance encompasses the core financial primitives that enable cross-chain liquidity and trading on the THORChain network. These mechanisms provide the foundation for decentralized finance (DeFi) operations while maintaining security and efficiency across multiple blockchain networks.

## Core Financial Primitives

### [Continuous Liquidity Pools](/technical-documentation/thorchain-finance/continuous-liquidity-pools.md)

The foundation of THORChain's AMM (Automated Market Maker) system, enabling permissionless liquidity provision and efficient asset swapping across chains without wrapped tokens.

### [Trade Assets](/technical-documentation/thorchain-finance/trade-assets.md)

A capital-efficient alternative to synthetic assets, offering 2x the efficiency for arbitrageurs with 6-second finality and no slippage redemption.

### [Secured Assets](/technical-documentation/thorchain-finance/secured-assets.md)

THORChain's approach to maintaining asset security through distributed key management and threshold signature schemes (TSS).

### [TOR](/technical-documentation/thorchain-finance/tor.md)

THORChain's native algorithmic stablecoin, designed to maintain price stability while integrating with the broader THORChain ecosystem.

### [RUNEPool](/technical-documentation/thorchain-finance/runepool.md)

Pooled liquidity provision mechanism that allows smaller RUNE holders to participate in liquidity provision with lower barriers to entry.

## Economic Model

THORChain's financial architecture is built around the **Incentive Pendulum**, which maintains a 2:1 bond-to-stake ratio ensuring network security. The native RUNE token serves four critical roles:

* **Settlement Asset**: All cross-chain swaps settle in RUNE
* **Security**: Node operators bond RUNE to participate in consensus
* **Liquidity**: Liquidity providers pair RUNE with external assets
* **Governance**: RUNE holders participate in network governance decisions

## Key Features

* **Cross-Chain Native**: Direct swaps between native assets across different blockchains
* **Permissionless**: No centralized authority controls access or operations
* **Capital Efficient**: Advanced mechanisms like Trade Assets maximize capital utilization
* **Secure**: Distributed key management protects user funds across all supported chains
* **Transparent**: All operations are verifiable on-chain

## Getting Started

Choose the primitive that best fits your needs:

* **New to DeFi**: Start with [Continuous Liquidity Pools](/technical-documentation/thorchain-finance/continuous-liquidity-pools.md)
* **Active Trader**: Explore [Trade Assets](/technical-documentation/thorchain-finance/trade-assets.md) for efficient arbitrage
* **Stability Seeker**: Learn about [TOR stablecoin](/technical-documentation/thorchain-finance/tor.md)
* **RUNE Holder**: Consider [RUNEPool](/technical-documentation/thorchain-finance/runepool.md) for passive liquidity provision