Summary
The team successfully Ragnarok’ed the existing network which was useful in identifying some issues that had to be fixed. The testnet will be re-deployed with these fixes to the public shortly. An additional testnet will also be deployed soon for potential THORNode validators to practice joining and leaving.
Dynamic Network Fees
A feature that was added was “Dynamic Network Fees”. This monitors all reported gas fees on incoming transactions (both fee-amount and fee-rate) and saves to the chain. Transactions are charged an amount 3 times the trailing average for the gas for each chain, and the actual gas used by the nodes is 1.5 times the incoming. This means outbound transactions are always prioritised *more* than incoming, and the gas used is always subsidised. An example is:
- The average of incoming Bitcoin fees is 10 sats/byte, with average amount 4000 sats used. ( feeAmount = 4000, feeRate = 10, feeCoin = BTC.BTC ). (Incoming Bitcoin transactions will likely be of type 2-in-3-out so around 400 bytes).
- The user who is swapping to Bitcoin is charged 3 * 4000 BTC.BTC = 12000 BTC.BTC . This is taken from them as RUNE valueInRune(12000, BTC.BTC) (since all transactions go via RUNE at some point) and paid into the TotalReserve.
- Nodes then use a rate of 15 sats/byte to pay the outbound transaction. Most likely the outbound transaction is a 2-in-2-out so around 300 bytes, so the total amount is 4500 BTC.BTC which is taken from the Bitcoin vault balance.
- This transaction is then observed and reported back into THORChain and the Bitcoin pool is paid an amount equal to twice the fee (9000 BTC.BTC ) but in RUNE. This cause arbitrage and the Bitcoin pool is topped up by the market at an amount at least equal to 4500 BTC.BTC .
While appearing complex, this mechanism has the following simple characteristics:
- Fee rates are responsive to short-term fluctuations and should be high enough to always be processed in their respective mempools.
- The fee mechanisms is standard across all chains, no matter the fee-type.
- Liquidity stakers are providing the capital for gas, but should always be reimbursed.
- The network makes a small margin on every swap.
THORNode
Bugfixes & Refactoring
All issues identified from the testnet has been merged back into the main binary.
- [bugfix] removing native tx relay from msg send
- [refactor] refactor how to do kvstore migration
- [refactor] break memo into its own package
- [bugfix] add pruning
- [refactor] move keeper to its own sub packages
- Resolve “[REMOVE] remove old events”
- [bugfix] patches discovered through testnet
- [bugfix] update binance broadcast parsing
- 492-issue add processIn and processOut property back
- [bugfix] fix double handler bug
- [bugfix] remove old pubkeys from pubkey manager in bifrost
- 490-issue a little bit code clean up
- [bugfix] chain block height takes priority over current store position
- [documentation] remove old ‘setup’ documentaiton, its no longer used
- [bugfix] unstaking requires 24 hrs
Chain Work
- [admin] mimir has the power to change the emission curve
- Fix entrypoint keyring
- Resolve “Update Constants endpoint”
- 487-issue add rune address to stake event
- Resolve “[ADD] Dynamic network fees”
Midgard
- Resolve “Fix dateCreated”
- Resolve “Make event handler unit tests deterministic”
- Resolve “Delivery layer clean up”
- Resolve “Build html document in docker build”
- Resolve “ADD: rune address to stake event”
- Resolve “Add eth and btc address”
- Resolve “ADD: totalEarned”
- Fix cross chain duplicate IDs
- Resolve “”thorchain” package cleanup”
- [testnet deploy] updates testnet docker image
- Resolve “Invalid input tx for stake event”
ASGARDEX
ASGARDEX-COMMON
Work continues to abstract out most of the main chain features so that the heavy lifting can be done by a standardised NPM package. This includes all of the CLP arithmetic.
- RESOLVES: Issue15b — Refactor Binance
- Upgrade to latest dependencies, misc. quick fixes
- Fix return type of `getBalance`
- FIX LINTING
- Fix build of the library
- Add calc for XYK formula
- ADD: slip on stake method
- RESOLVE: Issue2 — getSwapSlip
- RESOLVE: ISSUE3 — IMPORT TOKEN HELPERS
ASGARDEX-ELECTRON
The wallet work continues to bring in the main components.
- Feature/addkeys accountdata
- Install `asgardex-binance` from branch
- Feature/sort import order
- Fix build actions and usage of `BinanceClient`
- Feature/ui component
- Issue 104/add mobile header
- Feature/ui component
- Feature/addressinput
Audit
- Code Review: Complete
- Economic Review: Preparing Final Review
- TSS Audit: 58%
- Infra Audit: scoping

Next Milestones
The testnet is being re-deployed and will be made public soon. Chaosnet is expected once testnet has been fully-validated in several environments. There currently isn’t any known blockers to Chaosnet release.
Community
To keep up to date, please monitor community channels, particularly Telegram and Twitter:
- Twitter: https://twitter.com/thorchain_org
- Telegram Community: https://t.me/thorchain_org
- Telegram Announcements: https://t.me/thorchain
- Reddit: https://reddit.com/r/thorchain
- Github: https://github.com/thorchain
- Medium: https://medium.com/thorchain
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