THORChain fees modestly recover from exploit-driven surge

Key Takeaways

THORChain's gross swap fees are climbing again, but remain 84% below September's levels, which were largely driven by a Bitget exploit. The protocol's new revenue distribution model prioritizes Protocol-Owned Liquidity, which could provide deeper liquidity control. However, the smaller RUNE burn share may indicate a trade-off in terms of token burn rate.

Context

September was not a normal month for THORChain, as much of its activity came from funds tied to the Bitget exploit. The protocol's system income reached $3.01 million in September, but this figure is largely driven by a one-off event. DefiLlama reports that recent 30-day fees are approximately $635K.

Analysis

The new revenue distribution model prioritizes Protocol-Owned Liquidity, which could provide deeper liquidity control. However, the smaller RUNE burn share may indicate a trade-off in terms of token burn rate. It is essential to track whether monthly fees can climb meaningfully above the roughly $635K range without another one-off event. Additionally, watch whether active wallets hold near 25,000 now that the surge is over and keep an eye on how quickly POL grows beyond its nearly 946,000 RUNE.