DeFi

Arbitrum DEX Chronos Surge 7000% In TVL In Just 2 Days

Key Points:

Arbitrum-based DEX Chronos garnered almost $230 million in only two days after introducing staking.
Some liquidity pools on the DEX pay up to 2,300% to LP.
The DEX is the ninth biggest decentralized exchange.

Chronos, a decentralized exchange (DEX), reached a new milestone on May 5, achieving $235.9 million in total value locked (TVL) at the time of writing, just seven days after launching on the Arbitrum blockchain. This increase was recorded up to nearly 7000% from May 3.

Chronos, an Arbitrum-based DEX, which started on April 27, is a (3,3) exchange that uses staking as a main resource for accumulating value to its token in order to reach store-of-value status. The (3,3) paradigm was popularized by the Ethereum-based Olympus DAO, one of the most visible initiatives during the last crypto market run.

Chronos drew almost $230 million in only two days after introducing staking, a method of generating income from digital assets without having to sell them.

Chronos now ranks tenth among the major decentralized exchanges, according to DefiLlama, based on the updated TVL data. TVL symbolizes monies owned or staked inside a protocol in DeFi.

The TVL milestone was reached in the early morning hours after the protocol initiated Epoch 1, which authorized CHR token emissions to liquidity pools. With the start of Epoch 1, stakers could also start collecting rewards.

Some Chronos liquidity pools pay up to 2,300% to liquidity providers (LP) in the form of CHR tokens, which can be used to vote on protocol changes. LPs are entities that contribute two separate tokens to the smart contracts of a decentralized exchange in return for a portion of the fees imposed by the exchange on each deal.

Holders of these tokens may resell them to earn more fees, keep voting power, and create a liquid marketplace for other companies looking to borrow money from Chronos. High returns are uncommon in the cryptocurrency industry, which might explain the unexpected influx of funds to Chronos.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.