KEY TAKEAWAYS
- The THORChain community is addressing the default of ThorFi lending and savers programs with a multi-phase restructuring plan.
- TCY, a new yield-bearing claims token, has been introduced to help affected users recover their losses.
- TCY allows claimants to earn yield and participate in THORChain’s future growth, reflecting a commitment to protocol sustainability and community trust.
- The final phase of the ThorFi unwind focuses on the adoption and performance of TCY as it goes live.
Following the default of the ThorFi lending and savers programs in 2025, the THORChain community has initiated a multi-phase effort to restructure and resolve outstanding claims. This approach, detailed in the ThorFi Unwind, aims to prioritize the protocol’s sustainability while acknowledging its obligations to affected users.
The THORFi default prompted both internal and community-led proposals to restore balance. The primary goal is to maintain protocol integrity, minimize distortion of existing incentives, and provide a pathway to redress for claimants. The final component of this unwind process is the introduction of TCY, a new token on THORChain specifically created to address the default of ThorFi.
TCY Token: A Mechanism for Recovery
TCY is designed as a yield-bearing claims token, distributing 10% of all system income to TCY stakers. On January 24th, 2025, when ThorFi was paused, all outstanding claims were dollarized. The dollarized debt amount determines the amount of TCY that can be claimed by each affected claimant. The full claims list is available here.
The official interface to claim TCY is located at tcy.thorchain.org. Claimants will need a THORChain address to claim, and their TCY will automatically be staked to start earning yield daily. Users are advised to beware of scams and fake websites. Support is available through the THORChain University Discord.
Community Discussions and Future Prospects
Community discussions have focused on balancing moral and fiscal obligations with practical recovery. The sentiment is that TCY is not a final payout but a mechanism to share in the long-term upside of the protocol. Designed with deflationary dynamics and continuous buybacks, TCY allows former claimants to participate in THORChain’s future growth.
The design of TCY mirrors the ethos of THORChain, offering users the freedom to sell their TCY to reclaim a portion of their locked value or hold and capture a portion of system revenue indefinitely. In essence, TCY is not a closure but a continuation, providing a chance to realign incentives, reinforce community trust, and build forward.
With the rollout of TCY, the ThorFi unwind reaches its final phase. This solution reflects a deliberate effort to balance protocol longevity with accountability. The focus now shifts to adoption, performance, and execution as TCY goes live.
Why This Matters: Impact, Industry Trends & Expert Insights
The THORChain community has launched the TCY token as a part of its strategy to address the default of the ThorFi lending and savers programs. This initiative aims to resolve outstanding claims and promote the protocol’s sustainability.
A Transak report highlights that yield-bearing stablecoins are projected to significantly expand their market share, driven by the demand for crypto-native yield products. The introduction of TCY as a yield-bearing claims token aligns with this trend by offering a mechanism for affected users to earn returns while participating in THORChain’s recovery.
Recent expert insights suggest that deflationary tokens can increase scarcity, potentially leading to long-term value appreciation. This supports the TCY token’s deflationary design, which aims to realign incentives and bolster community trust, providing a pathway for future growth within the THORChain ecosystem.
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