Arbitrum-based decentralized exchange (DEX) Chronos pulled over $170 million onto the platform in a single day after introducing staking, a way to earn income from digital assets without having to sell them.
Launched on April 27, Chronos is a so-called (3,3) exchange that uses staking as its primary resource for increasing the value of its token to achieve store-of-value status. The (3,3) paradigm was popularized by the Ethereum-based Olympus DAO – one of the most prominent projects of the previous crypto bull run.
Some liquidity pools on Chronos pay up to 2,300% to Liquidity Providers (LP) in the form of chr (CHR) tokens that can be used to vote on protocol changes. LPs are companies that provide two different tokens to the smart contracts of a decentralized exchange and charge a cut in the fees charged by the exchange for each trade.
Holders can re-stake these tokens to earn additional fees, retain voting rights, and ensure a liquid marketplace for other projects that may wish to borrow capital from Chronos.
Such returns are rare in the crypto market, which could explain the sudden capital rush to Chronos.
Chr tokens are trading at around $1.30 at the time of writing and have a market cap of over $90 million.
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