THORChain, a decentralized cross-chain liquidity protocol, is facing a liquidity crisis of nearly $200 million, similar to the collapse of Terra Luna in 2022. The protocol's solvency is heavily dependent on the performance of its native token, RUNE, which has been negatively impacted by recent market trends. As a result, THORChain has paused its lending and savings programs and is undergoing a 90-day restructuring plan to stabilize the system. The situation highlights the risks of protocols reliant on the value of their native tokens and the importance of effective risk management.



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