# yRUNE — Yield Bearing RUNE

By [RUNEBond](https://paragraph.com/@runebond) · 2025-08-25

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What is yRUNE?
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**yRUNE (Yield Bearing RUNE)** is a new asset in the **THORChain ecosystem**.It offers a unique combination:

*   Direct exposure to the price of **RUNE**
    
*   Real yield capture from **Thorchain System Income** through **TCY**
    
*   Automatic rebalancing between RUNE and TCY to maximize returns and benefit from volatility
    

In other words, **yRUNE is the first liquid asset that lets users benefit from Thorchain’s system income**, something not possible with a standard liquid version of RUNE.

> yRUNE is an index product originally developed by **NAMI**, the team behind the Index contracts.For technical specifications, see the [NAMI documentation](https://docs.namifi.app/docs/products/index/indexes/yrune).

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How does yRUNE work?
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yRUNE is a **self-rebalancing basket of RUNE and TCY**, designed around three main drivers:

### 1\. TCY Yield

*   TCY captures **10% of Thorchain’s system income**
    
*   The yRUNE contract is whitelisted to receive these rewards, so **holders benefit directly**
    

### 2\. RUNE / TCY Price Ratio

*   TCY’s shallow liquidity causes **price swings that create opportunities**
    
*   yRUNE dynamically rebalances toward the “cheaper” asset, capturing value over time
    

### 3\. Liquidity & Slippage Protection

*   Safeguards in the contract ensure **rebalancing minimizes market impact**
    
*   If liquidity is too thin, rebalancing is delayed until conditions improve
    

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Weights & Rebalancing
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*   **Initial weights**: 80% RUNE – 20% TCY
    
*   **Rebalancing frequency**: with every contract crank (at least once per minute)
    
*   **Trigger**: if weights deviate by more than 1% from the target
    

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Fee Structure
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*   **Redemption Fee (1%)** → Collected by NAMI as the index creator, charged when withdrawing
    
*   **AUM Fee (1% per year)** → Collected by NAMI, calculated block-by-block and captured on contract interactions
    
*   **Mint Fee**:
    
    *   None if your wallet balance is **below 1,000 RUNE**
        
    *   **1% affiliate fee** if your wallet holds more than 1,000 RUNE → collected by RUNEBond
        

💡 _This affiliate fee is a RUNEBond-specific policy: it ensures that large RUNE holders still support THORChain’s security by incentivizing them to direct part of their capital into bonded validator nodes, since yRUNE itself does not contribute to bonding._

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Risks
=====

yRUNE includes the usual risks associated with DeFi assets:

*   **Asset risk** → Exposure to the price of RUNE and TCY
    
*   **Smart contract risk** → The underlying contracts are audited, but never risk-free
    
*   **Rebalancing risk** → Designed to capture volatility, but returns depend on market conditions
    
*   **Liquidity risk of TCY** → Shallow liquidity can lead to sharp price movements
    
*   **Ecosystem dependency** → Changes in Thorchain parameters or protocol upgrades may affect performance
    

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Why choose yRUNE?
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*   The **only liquid asset** combining RUNE’s price exposure with real system yield from Thorchain
    
*   Automatic rebalancing with safeguards against slippage
    
*   Seamless access directly through RUNEBond
    

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👉 **Get yRUNE now through RUNEBond** and explore other yield assets here:➡️ [RUNEBond Yield Assets Dashboard](https://swap.runebond.com)

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*Originally published on [RUNEBond](https://paragraph.com/@runebond/yrune-yield-bearing-rune)*