# Settlement Currency

$RUNE is the base currency and is required to be staked along side every asset in pools. This avoids value being diluted across many pools which has been observed in other implementations. Without a native settlement currency, each asset would need to be pooled with every other asset, which would eventually result in hundreds of new pools to be created for just one new asset, diluting liquidity. Using the formula below we can calculate the network requirements for various scenarios. $n(n-1)/2$  No. of Assets(eg. BTC, ETH) No. of Pools(Others) No. of Pools(THORChain) 12 66 12 24 276 24 100 4950 100 1000 499,500 1000 ​ ​ ​ Based on the above, you may now understand the total liquidity requirement for$RUNE is directly proportional to the combined liquidity of other assets. A rule of thumb is for every $1m in main-chain assets staked in liquidity pools,$1m of \$RUNE is required to be staked along side. This has a positive effect on the monetary base of RUNE.