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Home / Blog / THORChain 3.20 Native Monero Swaps

THORChain 3.20 Made Monero Swaps Native. Here's When to Use It, and When an Instant Swap Still Wins

Published · Updated · By Alex Morgan

On August 25, 2026, THORChain shipped version 3.20 and, for the first time, real Monero and real Zcash could be swapped against Bitcoin, Ethereum and stablecoins on a decentralised protocol with no wrapped tokens, no account and no custodian in the middle. Monero rallied roughly 50% over the month, touching $544 on August 31, and the launch was widely framed as the answer to two years of exchange delistings.

The announcement coverage told you that it exists. It did not tell you what it is actually like to use, or whether you should. This post covers the parts the press releases skipped: what changed at the protocol level, what a BTC to XMR swap costs you in slippage and waiting time on a pool that is still being filled, where the Zcash side falls short on privacy, and a plain decision rule for when THORChain is the right tool versus a fixed-rate instant swap.

What THORChain 3.20 Actually Shipped

  • Native XMR and ZEC pools. Monero and Zcash join the protocol as first-class chains. A swap pays out real XMR to the Monero address you supply. There is no wXMR, no synthetic, no IOU.
  • A dedicated Monero vault. Instead of the usual multi-vault model, XMR lives in a single vault whose signers are the entire active validator set (100+ nodes), using FROST threshold signatures. The reason is observability: Monero outputs cannot be audited from the outside, so every node needs a share of the key to verify the vault's balance.
  • Memoless swaps. Monero's 16-byte transaction memo cannot hold a THORChain swap instruction, so the XMR client uses a memoless flow that pairs your deposit with your intended swap off-chain. This is why you must use a supported interface rather than hand-crafting a transaction.
  • Protocol-Owned Liquidity (POL). The protocol now commits its own capital to new pools rather than waiting for outside LPs. This is the mechanism that is supposed to fix the thin-pool problem below, gradually.
  • Stable Reserve. Stablecoin-to-stablecoin swaps with no liquidity fee. Useful if you rotate between USDT and USDC; irrelevant for privacy-coin swaps.
  • Solana, Base and BNB Chain re-enabled. SOL is routable again, which matters if you are coming from Solana into XMR.

Access is through the official interface at swap.thorchain.org or wallets that integrate THORChain routing. Confirm that the interface you are using lists XMR before you send anything; not every THORChain frontend has added the new chains yet.

How a BTC to XMR Swap Works on THORChain Now

  1. Have a Monero wallet ready. Cake Wallet, Feather or the Monero GUI. Copy your receive address. THORChain does not hold XMR for you at any point.
  2. Open a supported interface and select BTC as the source, XMR as the destination. Paste your Monero address as the recipient.
  3. Read the quote. The interface shows the expected XMR, the slippage against pool price, and a minimum-receive amount. Compare it to the spot rate on any price site. If the gap is more than you are willing to pay, stop here.
  4. Send the Bitcoin. From your own wallet, to the vault address the interface generates, with the memo it gives you. Send exactly what you quoted.
  5. Wait for confirmations. Your BTC needs to confirm, the protocol routes BTC to RUNE to XMR internally, and the Monero network then needs 10 confirmations (about 20 minutes) before your wallet will let you spend. End to end, budget 20 to 60 minutes.
  6. If the price moves past your limit, the swap refunds BTC to your source address, minus network and outbound fees.

Compare this to a fixed-rate instant swap, where step 3 is a locked number, step 5 is the only wait, and there is no step 6.

The Real Costs: Slippage, Wait, and a Floating Rate

Slippage on a thin pool

THORChain chose a phased rollout and said so plainly: liquidity for the XMR and ZEC pools would be thin at the start, with the treasury acting as the primary liquidity provider from a seed of roughly $10,000. Protocol-Owned Liquidity has been adding depth since, but two weeks in, the pool is nowhere near deep enough for the amounts people actually move into Monero. A swap that represents a few percent of pool depth pays a few percent in price impact. On a small pool, that threshold is reached at a few hundred dollars, not a few thousand.

The practical rule: check the live pool depth in the interface before you quote. If your swap is more than about 1% of the XMR pool, expect visible slippage. If it is more than 5%, use a different route or split the order with streaming swaps, which spread the trade over many blocks and still cannot beat the pool's recovery rate.

Waiting time

Two chains have to confirm, and Monero's 10-confirmation lock on the receiving side alone is about 20 minutes. Bitcoin congestion adds on top. Half an hour is a normal experience, an hour is not unusual. Instant swap services face the same Monero confirmation rule for outbound funds, but they do not add a second protocol hop, and they report a 5 to 30 minute window for the same pair.

A floating rate

THORChain is an automated market maker. The quote is an estimate; the amount you receive is decided by pool state when your deposit lands. Slippage limits stop catastrophic outcomes by refunding, but a refund is not a free retry: you have paid Bitcoin fees and an outbound fee and are back where you started, 30 minutes later, with a different price.

Fees

Protocol fees are small, in the range of 0.05% to 0.15%, plus the outbound network fee on the Monero side. The fee line is rarely the problem. Price impact on a shallow pool is. A 0.5% instant-swap margin on a fixed quote is frequently cheaper in total than a 0.1% protocol fee plus 3% slippage.

The Zcash Caveat: Transparent Addresses Only

ZEC shipped in the same release, and the headline "native Zcash swaps" is true. What it does not say is that the integration works with transparent t-addresses. Shielded support, whether legacy z-addresses or unified u-addresses, has not been announced for 3.20. Validating a shielded output from an external protocol needs either trust assumptions or a zero-knowledge verification layer that does not exist in THORChain today.

For a privacy user that matters. A BTC to ZEC swap on THORChain lands in a transparent address, visible on the Zcash chain like any Bitcoin transaction. You then shield it yourself inside Zashi or Zodl, which is one more transaction and one more link in the graph. If your goal is shielded ZEC from the start, our THORChain Zcash guide walks through the address types, and the BTC to ZEC pair page covers the instant-swap route.

THORChain vs Instant Swap: Side by Side

FactorTHORChain 3.20Fixed-rate instant swap
RateFloating, decided at settlementLocked when you create the order
SlippageDepends on pool depth; high on XMR/ZEC while pools fillNone; margin is built into the quote (~0.5%)
Time, BTC → XMR20–60 min (two chains + 10 XMR confirmations)5–30 min
SetupCompatible wallet or interface, memo handlingPaste an address, send coins
CounterpartyNone; validator-controlled vaultsThe swap operator for the minutes the order is open
Large amountsImpractical until pools deepenHandled via aggregated liquidity
Source coinsBTC, ETH, stablecoins, SOL, others via RUNEBTC, ETH, LTC, SOL, USDT (TRC20/ERC20), ZEC and more, direct to XMR
Shielded ZECTransparent addresses onlyPays to the address your wallet gives
KYCNoneNone

Use THORChain When

  • No operator is the point. You want threshold-signed vaults and no company anywhere in the flow, and you accept the trade-offs to get that.
  • You already run a compatible wallet. If THORChain routing is one tap away in a wallet you use daily, the marginal friction is low.
  • Your amount is small relative to the pool. A few hundred dollars while the pool is young; more as POL fills it.
  • You are providing liquidity, not just swapping. Early LPs in the XMR pool earn fees on every swap that crosses it. That is a different decision from a one-off conversion.
  • You are willing to wait and to be refunded. A floating rate with slippage protection means the swap can bounce. If that is acceptable, the protocol works.

Use an Instant Swap When

  • You need to know the amount before you send. A fixed quote is the whole product. THORChain cannot offer one.
  • The amount is meaningful. Anything that would move a thin pool by a few percent is cheaper on aggregated liquidity, even after the swap margin.
  • You are starting from a coin outside THORChain's routing. LTC, USDT on TRON, and several others go direct to XMR on an instant swap in one hop. See the BTC to XMR and ETH to XMR pages for the two most common routes, or XMR to BTC for the exit.
  • You want shielded Zcash without an extra step.
  • You want it done in one screen. Address, amount, send. No wallet integration, no memo, no pool maths.

Both routes are non-custodial in the sense that matters: the XMR ends up in your own wallet and nobody asked who you are. The difference is who, if anyone, holds the funds for the few minutes in between, and whether the number you were quoted is the number you get. Our Monero hub lists every no-KYC route we track, including atomic swaps for people who want neither an operator nor a pool.

What to Watch Over the Next Few Months

  • Pool depth. The single number that decides whether THORChain XMR is usable for your size. Protocol-Owned Liquidity is the lever; watch the XMR pool on any THORChain explorer.
  • Frontend adoption. More wallets exposing XMR routing means less setup friction. Until then, verify your interface supports the new chains.
  • Shielded ZEC. No date. When it lands, the Zcash side becomes far more interesting for privacy users.
  • Exchange behaviour. A liquid, native, non-custodial XMR market changes the calculus for exchanges that delisted Monero on the grounds that there was no way to trade it. Read why exchanges delisted Monero for the background.
  • Security record. New chain clients are new code. A quiet first six months would say a lot.

Frequently Asked Questions

What did THORChain 3.20 actually change for Monero?

Version 3.20, released on August 25, 2026, added native XMR and ZEC to THORChain's mainnet. You can now swap real Monero or Zcash against BTC, ETH and stablecoins with no wrapped tokens, no account and no custodian. The same release introduced Protocol-Owned Liquidity, a Stable Reserve for fee-free stablecoin swaps, and renewed support for Solana, Base and BNB Chain.

How long does a BTC to XMR swap take on THORChain?

Plan for 20 to 60 minutes. Your Bitcoin deposit needs to confirm first, THORChain then routes BTC to RUNE to XMR internally, and Monero requires 10 confirmations (roughly 20 minutes) before the received XMR is spendable in your wallet. Bitcoin congestion is the biggest variable.

Why is slippage high on the THORChain XMR pool?

THORChain launched XMR with a deliberately phased rollout and a small treasury-seeded pool. On a thin pool, even a mid-size swap moves the price against you, so the quote you receive can sit several percent below the market rate. Protocol-Owned Liquidity is designed to deepen the pool over time, but as of September 2026 the depth still favours small swaps. Always compare the quote to spot before confirming.

Does THORChain send Zcash to shielded addresses?

THORChain's Zcash integration works with transparent (t-) addresses. Shielded-address support has not been announced as part of 3.20. If you want shielded ZEC, receive to a transparent address and shield inside your wallet, or use an instant swap that pays out to the address type your wallet gives you.

Is THORChain a fixed-rate swap?

No. THORChain quotes a rate at the moment you submit, but the actual amount received depends on pool conditions when your deposit confirms. Slippage limits protect you from extreme moves by refunding the swap, minus fees. An instant swap service with a fixed quote locks the amount you will receive when you create the order.

When is THORChain the better choice than an instant swap?

When you want a protocol with no operator at all, you already run a THORChain-compatible wallet, your amount is small relative to the pool, and you are happy to wait for confirmations and accept a floating rate. For larger amounts, for a guaranteed receive amount, or when you are starting from a coin THORChain does not route natively, an instant no-KYC swap is faster and usually cheaper once slippage is counted.

Is THORChain safe to use for Monero swaps?

The Monero integration uses a dedicated vault signed by the full active validator set with FROST threshold signatures, and it spent months on stagenet before launch. THORChain itself has a history of large exploits and any new chain client is new code. Start with a small amount, use the official swap interface rather than constructing memos yourself, and never send more than the pool can absorb.

Want the Fixed Number Instead?

BTC, ETH, LTC, SOL, USDT → XMR · Locked rate · No account · 5–30 min

Swap to Monero Now →