Arbitrum-based decentralized exchange (DEX) Chronos attracted over $170 million onto the platform in a single day as it introduced staking, a way of earning yield from digital assets without needing to sell them.
Chronos, which launched on April 27, is a so-called (3,3) exchange, using staking as a primary resource for accruing value to its token to achieve store-of-value status. The (3,3) paradigm was made famous by Ethereum-based Olympus DAO – one of the most prominent projects of the previous crypto bull run.
Some liquidity pools on Chronos are paying as much as 2,300% to liquidity providers (LPs) in the form of chr (CHR) tokens, which can be used to vote on protocol changes. LPs are entities that provide two different tokens to a decentralized exchange’s smart contracts, netting a cut of the fees charged by the exchange on each trade.
Holders can restake these tokens to earn additional fees, retain voting power and ensure a liquid marketplace for other projects that may look to borrow capital from Chronos.
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Such yields are rare in the crypto market, which may explain the sudden rush of capital to Chronos.
Chr tokens are trading at about $1.3 at the time of writing and have a market capitalization of over $90 million.