Home | Crypto News | Arbitrum’s Chronos Becomes 8th Largest DEX With Over $200M In Staked Funds

Arbitrum’s Chronos Becomes 8th Largest DEX With Over $200M In Staked Funds

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Chronos, a decentralized exchange (DEX), hit $217 million in total value locked (TVL) at the time of writing on May 4, just seven days after debuting on the Arbitrum blockchain. 

DefiLlama’s data indicates that Chronos has now become the 8th biggest decentralized exchange in terms of Total Value Locked (TVL). TVL refers to the amount of funds that are either held or staked in a DeFi protocol.

During the first few hours after the launch of Epoch 1, which enabled the emission of Chronos (CHR) tokens to liquidity pools, the TVL milestone was achieved. With the launch of Epoch 1, investors were also able to begin collecting benefits.

Chronos started operating as an automated market maker and a liquidity provider for the Arbitrum network on April 27. It provides various pools, including the Chronos-Ether (CHR/ETH) and Chronos-USD Coin (CHR/USDC) with 2 million CHR tokens, as well as hosting other pools like Arbitrum-Ether (ARB/ETH), Ether-USD Coin (ETH/USDC), USD Coin-Tether (USDC/USDT), and Wrapped Bitcoin-Ether (WBTC/ETH).

According to Charles Wayn, co-founder of Web3 community platform Galxe, decentralized exchanges have become crucial in the DeFi space and are displaying indications of growth and maturation after the cryptocurrency market’s downturn in 2022. Wayn noted that the industry recognized the real value of DEXs following the bankruptcy of FTX and that the decentralization brought by DEXs has become more important than ever. He explained that DEXs and wallets would serve as the backbone of gaming adoption in the upcoming years.

Bob Baxley, the chief technology officer of Maverick Protocol, stated that DEXs and DeFi have proven to be effective over the past year. He further mentioned that major DEXs often surpass Coinbase in daily volume. He predicts that DEXs will benefit from the regulatory environment in the United States if centralized on-ramps into the crypto ecosystem continue to be restricted. This would lead to more individuals turning towards DEXs for trading.

DEXs are peer-to-peer exchanges where cryptocurrency traders may carry out transactions without handing over their money to middlemen or custodians. These autonomous transactions are made possible through smart contracts. Hacks and flaws, on the other hand, rank among the most significant threats to trading on DEXs, as we’ve observed over the previous few years. 

Brent Xu, the founder of Web3 bond-market platform Umee, stated that he expects the trading volumes for many decentralized exchanges (DEXs) to experience exponential growth as blockchain platforms, such as Ethereum, continue to scale and offer more throughput at lower gas prices.

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