Last Updated on May 5, 2023 by Bitfinsider
Just seven days after launching on the Arbitrum blockchain, decentralized exchange (DEX) Chronos achieved a new milestone on May 4 by surpassing $217 million in total value locked (TVL) at the time of writing.
According to DefiLlama, Chronos now ranks ninth among the biggest decentralized exchanges with the new TVL data. The monies held or staked within a protocol are represented by TVL in DeFi.
The protocol’s Epoch 1 enabled Chronos (CHR) token emissions to liquidity pools, enabling the TVL milestone to be reached in the morning hours of the next day. Epoch 1’s start also made it possible for stakers to start earning rewards.
Chronos debuted on April 27 to serve as a liquidity provider and automated market maker for the Arbitrum network, hosting core pools such as Chronos-Ether (CHR/ETH) and Chronos-USD Coin (CHR/USDC), both seeded with 2 million CHR tokens, along with Arbitrum-Ether (ARB/ETH), Ether-USD Coin (ETH/USDC), USD Coin-Tether (USDC/USDT) and Wrapped Bitcoin-Ether (WBTC/ETH) pools.
The core of DeFi are decentralized exchanges, which have grown and matured since the crypto winter of 2022. “The industry realized the true importance of DEXs following the FTX bankruptcy. DEXs’ ability to provide decentralization is more important than ever, according to Charles Wayn, co-founder of Web3 community platform Galxe, who also emphasized that wallets and DEXs will be the mainstays of gaming adoption in the years to come.
According to Bob Baxley, chief technical officer of Maverick Protocol, the past year has served as a proof-of-concept for DEXs and DeFi. “After all, if you look at some major DEXs, on some days they’re doing more volume than Coinbase,” he added, adding that the United States’ tighter regulatory landscape is probably good for DEXs.
DEXs are peer-to-peer exchanges where cryptocurrency traders can conduct 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 largest hazards of trading on DEXs, as we’ve observed over the previous few years.
According to Brent Xu, founder of Web3 bond-market platform Umee, “I suspect volumes for a wide variety of DEXs will eventually grow at an exponential rate, especially when the underlying blockchains like Ethereum continue to scale and, in turn, offer more throughput for lower gas prices.”
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