THORChain is converting nearly $200 million of unserviceable debt into equity through a new token, TCY (Thorchain Yield), after pausing THORFi services on January 23 due to financial uncertainties. TCY tokens will be issued at a rate of 1 TCY per dollar of defaulted debt, allowing lenders and savers to become equity holders. THORChain aims to create a RUNE/TCY liquidity pool, starting with $500,000 at a price of $0.1 per TCY, funded by a $5 million treasury allocation. Holders of TCY will receive 10% of THORChain's revenue indefinitely, providing long-term incentives amidst the debt crisis. While the platform's main service, cross-chain swaps, remains operational, the price of its native token RUNE has dropped 10% in the last 24 hours, extending a 30-day decline of nearly 50%.

Source đź”—