04 May 2023 19:00, UTC
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Decentralized exchange (DEX) Chronos set a new milestone on May 4, reaching $217 million in total value locked (TVL) at the time of writing, just seven days after its launch on the Arbitrum blockchain.
With the new TVL figures, Chronos ranks eighth among the largest decentralized exchanges, according to DefiLlama. In DeFi, total value locked represents the funds held or staked within a protocol.
The TVL milestone was achieved during the first hours of the day after the protocol kicked off Epoch 1, which enabled CHR token emissions to liquidity pools. The initiation of Epoch 1 also allows stakers to begin collecting rewards.
Screenshot: Chronos (CHR) Total Value Locked. Source: DefiLlama
Chronos debuted on April 27 to serve as a liquidity provider and automated market maker (AMM) for the Arbitrum network, hosting core pools such as Chronos-Ether (CHR/ETH) and Chronos-USD Coin (CHR/USDC), both seeded with 2,000,000 CHR tokens, along with Arbitrum-Ether (ARB/ETH), Ether-USD Coin (ETH/USDC), USD Coin-Tether (USDC/USDT) and wrappedBitcoin-Ether (wBTC/ETH) pools.
Related: Liquid staking solutions now have more TVL than DEXs: DefiLlama
Decentralized exchanges are at the heart of DeFi and are showing signs of growth and maturity after 2022’s crypto winter. After FTX bankruptcy, the industry saw the real value of DEXs. Decentralization that DEXs bring matters more than ever, noted Charles Wayn, co-founder of Web3 community platform Galxe, explaining that DEXs and wallets will be the backbones of gaming adoption in the coming years.
Likewise, CTO of Maverick Protocol Bob Baxley told Cointelegraph that 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 said, noting that the tightening regulatory environment in the United States is likely to benefit DEXs:
If centralized onramps into the crypto ecosystem continue to get cut off in places like the United States, then we could see more and more people turning to DEXs for performing their trading.”
DEXs are peer-to-peer marketplaces where crypto traders transact without turning over their funds to intermediaries or custodians. Smart contracts power these self-executing transactions. However, as we’ve seen over the past few years, hacks and bugs are among the biggest risks of trading on DEXs.
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, Brent Xu, co-founder of Web3 bond-market platform Umee, told Cointelegraph.
Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
Sourced from cryptonews.net.