Frequently asked questions (FAQs)
Short answers to the questions bond providers ask most often. For the full picture, read how THORChain bond providers work and the risks of bonding RUNE.
What is pooled bonding in THORChain?
Section titled “What is pooled bonding in THORChain?”Pooled bonding lets you add your RUNE to an existing node operator’s bond instead of running a node yourself. You earn a share of the node’s rewards in proportion to your share of its bond, minus the operator’s fee. It is how you stake RUNE on THORChain, and a person who does it is called a bond provider.
Does RUNEBond hold my RUNE?
Section titled “Does RUNEBond hold my RUNE?”No. Bonding through RUNEBond is non-custodial: the bond moves from your wallet to the node on-chain and returns to your wallet when you unbond. RUNEBond indexes public THORChain transactions and helps bond providers and node operators find each other.
Is pooled bonding safe?
Section titled “Is pooled bonding safe?”It carries real risks. When you bond your RUNE you trust the node operator to run the node well, and you can lose RUNE if the node is slashed. You also cannot withdraw on demand, and the RUNE price can fall while you are bonded.
What could go wrong if I bond to the wrong node?
Section titled “What could go wrong if I bond to the wrong node?”A negligent or malicious operator can get the node slashed, which reduces the bond of every provider on it. They can also keep the node in the active set and delay your exit, leaving your RUNE locked until they leave or the protocol removes the node.
Can I withdraw my RUNE whenever I want?
Section titled “Can I withdraw my RUNE whenever I want?”No. Your RUNE is locked in the node’s bond and you can only unbond it when the node is in standby, after it leaves the active set. If the operator does not exit, your funds can stay locked until the network removes the node, which can take a long time.
How do I choose a trustworthy node?
Section titled “How do I choose a trustworthy node?”Compare each node’s fee, status, performance and slash history in the RUNEBond app, read the operator’s node profile and ask them questions through on-chain chat before you bond. Check the node’s estimated maximum time to leave, and consider spreading your RUNE across several nodes.
How do I start bonding to a node?
Section titled “How do I start bonding to a node?”The operator has to whitelist your address first. In RUNEBond you send a whitelist request as a 0.1 RUNE transaction with a memo naming the node, your wallet and the amount you want to bond. Once the operator approves it, you send the bond from that same address.
How much does the node operator charge?
Section titled “How much does the node operator charge?”Each operator sets a fee in basis points, where 10,000 is 100%. A 1,000 bps fee means the operator keeps 10% of the rewards earned on your bond. It is deducted from rewards, never from your principal, and it is public on-chain.
If I bond to a standby node, will I earn yield? When does a standby node become active?
Section titled “If I bond to a standby node, will I earn yield? When does a standby node become active?”Not right away. Standby nodes do not take part in the network and earn nothing. A standby node becomes active during a churn, a rotation that usually happens every 3 days, only if it is among the standby nodes with the highest total bond. Time spent in standby does not help, and only a limited number of new nodes can enter at each churn. You can see which nodes are waiting at thorchain.net/nodes.
Is there any upside to all this risk?
Section titled “Is there any upside to all this risk?”Yes. Bonding to a reliable node earns yield that comes mostly from THORChain’s swap fees, not from token inflation, while helping secure the network. The rewards always have to be weighed against the risks.
Can I receive my rewards without unbonding?
Section titled “Can I receive my rewards without unbonding?”Yes, through THORChain Bond Yield, once the network enables it. You choose a share of every future reward, from 1% to 100%, and THORChain pays it out automatically at each churn, in RUNE to your wallet or another address, or in another asset through a THORName. The rest keeps compounding in your bond, and your bonded RUNE stays locked as before. See Bond Yield: get paid at every churn.
Can I get paid in USDC?
Section titled “Can I get paid in USDC?”Yes. In your RUNEBond portfolio, set up a yield payout for the node, choose another asset, for example USDC, and a blockchain among the ones RUNEBond shows, enter your address on that blockchain and sign the two transactions. THORChain collects your share in RUNE in a THORName and converts it to USDC automatically once it exceeds a threshold set by the sensitivity you choose.
What happens if my THORName expires?
Section titled “What happens if my THORName expires?”Payouts routed to it fall back to your bond and anyone can register the name. Any RUNE waiting in its collector is not lost: it is paid to you, in RUNE, when the name is registered again, by you or by anyone else. The preferred asset, addresses and sensitivity are reset and the registration fee is due again, even if you register it yourself. If you subscribe to RUNEBond notifications for your address, by email or through the Telegram bot, RUNEBond warns you before it expires. See notifications via email and Telegram to subscribe. See THORNames and payout settings.