The aim of this article is to look at the most common swap pairs on Thorchain and to determine the number and volume of swaps for each pair.

### What is THORSwap and How it Works?

DEX built by THORchain, THORswap is a cross-chain exchange that leverages THORchain’s features to provide instant liquidity and trade cryptocurrency within the network. By removing the barrier of token standards, THORswap allows users to direct exchange tokens on different blockchains with just one click.

RUNE functions as a liquidity connector between two types of assets. When swap transactions are performed, the token ratio changes, resulting in a difference in the exchange rate. As the price in the pool is different from the outside market, arbitrage traders will enter the trade and profit from the difference. This process is repeated at a high frequency. Eventually, THORChain settles with the external market. For LPs that stake for over 100 days, THORChain has implemented a permanent loss insurance formula similar to Bancor’s.

If we want to swap BTC for ETH, it first converts BTC into RUNE, then RUNE into ETH. In this case, RUNE acts as a liquidity connector between two types of assets.

### THORswap Volume & Transactions

We can observe the daily number of swaps in Thorchain and their volume of past 30 days in the graph below. The total number of 13 combinations between October 3, 2021 and November 2, 2021 was 65K. The maximum number of combinations of 5.31K was observed on October 22, 2021, and the minimum number of combinations of 52 was observed on October 8, 2021. The number of combinations on November 2, 2021 and October 23, 2021 is lower than normal, while the number on October 21, 2021 is higher than normal.

Total Swap Volume between October 3, 2021 to November 2, 2021 was 118.41M. A maximum Total Swap Volume of 13.17M was observed on October 24, 2021, while a minimum Total Swap Volume of 68.8K was observed on October 8, 2021. From 1.38M swaps in October 3, 2021 to 207.49K swaps in November 2, 2021, the total swap volume decreased by 85%.

We can see from the graph below that the lowest total 13 combinations is 1 (AAVE->BNB) and the highest total 13 combinations is 7,978 (BUSD->BNB).

According to the above graph, the Total Swap Volume is 118.41M. In comparison, the lowest Total Swap Volume is 9.49 (BTC->TWT) and the highest Total Swap Volume is 14.91M (BTC->BUSD).

According to the given graphs, the past 30 days of daily Thorswap swap transactions by pair decreased by 87 percent from 1.46K on October 3, 2021 to 191 on November 2, 2021. 13 Combinations shows an increasing trend. Total 13 Combinations in November 2, 2021 and October 23, 2021 is lower than normal and higher than normal in October 21, 2021.

A Total Swap Volume of 9.49M (BTC->TWT) is the lowest and a Total Swap Volume of 14.91M (BTC->BUSD) is the highest.The maximum Total Swap Volume of 13.17M was seen on October 24, 2021, and the minimum Total Swap Volume of 68.8K was seen on October 8, 2021.Total Swap Volume of BUSD->ETH and BTCB->BUSD are positively correlated.

### Observation

- Based on the above analysis, if we look at the past 30 days thorswap pairs, the maximum number of transactions occurred on October 22, 2021, and the minimum number on October 8, 2021.
- In terms of THORswap volume, the maximum total swap volume was observed on October 24, 2021, and the minimum total swap volume was observed on October 8, 2021.
- According to the pairwise swap volume, the lowest pair is (BTC->TWT) and the highest pair is (BTC->BUSD).
- In terms of swap pairwise transactions, the lowest is (AAVE->BNB) and the highest is (BUSD->BNB).