PANews reported on January 24 that according to X user TCB, THORChain is currently insolvent. Data shows that THORChain's current liabilities include $97 million in loans (ETH and BTC) and about $102 million in savings and synthetic assets, while the available assets have only $107 million in external liquidity. TCB said that THORChain's lending obligations are fulfilled by minting and selling RUNE tokens, a design that leads to a high degree of reflexivity, further exacerbating the problem. After repaying $4 million in RUNE liabilities yesterday, the protocol owes millions of additional RUNE. The verification nodes have suspended network operations and are voting on a reorganization plan.

THORChain faces two choices: one is to maintain the status quo, about 5-7% of the value will be extracted by the first batch of exiters, and RUNE will continue to fall; the other is to declare debt default, retain the valuable part through bankruptcy reorganization, and gradually repay creditors without affecting the feasibility of the agreement. TCB recommends the second option to maintain the value of the network and achieve long-term development by protecting the rights and interests of liquidity providers.

The market shows that the price of THORChain (RUNE) is currently $2.27, a 24-hour drop of 29%.

Update : X user TCB released the latest explanation, saying that the THORChain network is still running, only the savings and loan functions are suspended.