RE: LeoThread 2026-01-16 18-30

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A user swapped 323 BTC for ETH (~$30M+) and ended up with more than expected⚡️

THORChain pools held only about 2,500 ETH — far from enough liquidity for a single massive swap.

Solution: streaming swaps + arbitrage



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7 comments
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Instead of one market-moving trade, the swap was split into 3,608 smaller swaps executed every 2 THORChain blocks over 13 hours.

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Why every 2 blocks instead of every block? The integration toolkit used to connect wallets to THORChain chose that interval to give arbitrage bots time to:

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  1. Spot the price gap on THORChain
  2. Buy the cheaper asset elsewhere
  3. Add liquidity to THORChain pools
  4. Capture profit from the spread

This design incentivizes arb bots to supply liquidity exactly when it's needed.

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Quote (including all fees): 9,192.55 ETH
Actually received: 9,240.64 ETH

The user received 48 MORE ETH than quoted.

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During the 13-hour execution, ETH/BTC dropped 1.93% on external markets, and the streaming approach captured that movement in the user's favor.

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Most DEXs and bridges fail at scale because they're limited to the liquidity sitting in their pools.

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THORChain's design makes arbitrage profitable, so bots provide liquidity when required — the bigger the swap, the more profitable the arb, the faster pools rebalance

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