Resolving Liquidity #3: Chronos
We're thrilled to announce an integration with Chronos, an innovative decentralized exchange (DEX) built on the Arbitrum blockchain. The core focus of this integration is driven by our mutually shared goals to further DeFi adoption through sustainable liquidity incentives.
With over $80 million in TVL, Chronos is paving the way as one the leading liquidity layers and AMMs within the Arbitrum ecosystem. Below we take a deeper look at how they’re reshaping LP’s and Entangle’s role within the bigger picture.
Entangle Partners with Chronos
Chronos leads the way with liquidity provisionining for both new and established protocols by optimizing the ve(3,3) model creating value for both users and the Arbitrum ecosystem.
Traditional DEXs often struggle with providing enough incentives for Liquidity Providers (LPs) and ensuring revenue for governance token holders. Recognizing these challenges, Chronos has innovated its model to strike an improved balance between incentives and rewards.
Moreover, Chronos' unique fee and incentive structure ensures high utility and rewards for holding and locking their native CHR token, thereby aiding in maintaining essential liquidity. The model harmonizes the incentives of all participants, including LPs, $veCHR voters, traders, and protocols.
By collaborating with Entangle, Chronos provides its users with the added benefit of our advanced infrastructure. Users can navigate from point A, facing the challenges presented by the existing systems from single utility LP assets, to point B, where they can access and utilize a user-friendly and efficient DeFi ecosystem by converting any LP asset into a composable LSD.
Here’s a user journey flow demonstrating how to avoid minimal yields and maximise capital efficiency:
1. User provides ARB-USDC on ChronosFi and receives LP token in exchange.
2. User stakes LP token via Entangle
3.a. Entangle stakes LP Token in an autocompounding smart contract
3.b. Entangle receives an maNFT via Chronos which will increase token incentives by 20% every 7 days
3.c. ChronosFi will direct the maNFT to the Entangle autocompounding smart contract
4.Entangle issues an LSD based of the LP token to the user as a receipt of provided LP Tokens
5. Entangle compounds token emissions rewards into additional LP Tokens
6. User can lend/borrow against Entangle LSDs on Money Market protocols i.e. Tender.fi
By using the Entangle infrastructure, users are able to supercharge yield while the protocol is incentivised with sticky liquidity.
Moving Forward
By integrating Chronos, a mutually symbiotic relationship is formed. This strategic alliance shares a unified vision of addressing fragmented liquidity and capital efficiency problems whilst aiming to provide a seamless DeFi experience for users.
About Chronos
Chronos is a community-owned DEX and liquidity provider built on Arbitrum. It's aimed at fostering DeFi growth through sustainable liquidity incentives. The platform seeks to become a reliable entry point for both new and established protocols. By choosing Arbitrum as its foundational network, Chronos aligns with a network that offers scalability, high transaction speeds, low costs, and Ethereum as the settlement layer for security.
About Entangle
Entangle is an omnichain dApp chain designed to unify fragmented liquidity and unlocking value of yield bearing assets via liquid staked derivatives. Powered by our unique oracle solution to facilitate cross-chain smart contract automation.