TechFlow reports on January 24, according to X user TCB's disclosure, THORChain is currently insolvent. Data shows that THORChain's current liabilities include $97 million in loans (ETH and BTC) and approximately $102 million in savings and synthetic assets, while available assets consist of only $107 million in external liquidity.
TCB stated that THORChain fulfills its lending obligations by minting and selling RUNE tokens, a design that creates high reflexivity, further exacerbating the problem. After repaying $4 million in RUNE debt yesterday, the protocol still owes several million more in RUNE. Validator nodes have suspended network operations and are voting on a restructuring plan.
THORChain faces two options: one is to maintain the status quo, where about 5-7% of value will be extracted by early exiters, causing RUNE to continue declining; the other is to declare default and undergo bankruptcy restructuring, preserving valuable components and gradually repaying creditors without affecting the protocol’s viability. TCB recommends the second approach—protecting liquidity providers' interests, maintaining network value, and enabling long-term development.
