What Do You Need to Know About Chronos Finance?
Unstoppable Finance | Sei Network | Liquid Driver Updates
GM Intels, this is your Daily Bolt briefing.
Today’s research includes the latest updates from key DeFi and crypto protocols, including Liquid Driver, Sei Network, Unstoppable, and more.
Continue reading to learn more on what Chronos Finance is, and how it’s working with other projects in the crypto space.
And if you require further intelligence regarding the ongoing confrontation between Binance and American regulatory authorities; we’ve got you covered.
Founder Nick Drakon and Souvlaki have analyzed the situation and provided their operational insights on the potential impact of this situation on the wider crypto landscape.
Over and out.
Key Discussions Happening Today
1/ blocmates - Introduction of Unstoppable, Products and the Team
Preview: Jedi from blocmates dives straight into Unstoppable with co-Founder 0xNic and discusses about the introduction of Unstoppable, products and the team behind the project. Click here to listen to the full episode.
Length: 67 mins | OUR NOTE: 5 mins
The Unstoppable DEX offers spot and perpetual swaps and plans to compete with centralized exchanges by providing a complete product that includes various features.
The team behind Unstoppable has experience in building software for web 2 and web 3, and they are committed to maintaining decentralization and custody of funds.
Unstoppable offers undercollateralized loans to traders through its liquidity providers.
The liquidity providers are not trading against the traders but are instead providing liquidity as stakers and holders of the anchor token.
This way, the traders and liquidity providers are not in direct competition with each other, and the liquidity providers can earn interest on their staked tokens.
2/ Liquid Driver - Community Call - Mar. 27, 23
Preview: In this community call, Liquid JJ, bX__Liquid, 0xH3pic and homme discuss the latest updates on Liquid Driver. Click here to listen to the full episode.
Length: 33 mins | OUR NOTE: 2 min
Here are some key takeaways:
The $mxLQDR transition has already started.
For the first 3 rewarders they placed, users were actually receiving rewards both from Fantom and BNB Chain.
Chronos implemented some Byte Masons’ Reliquary contracts into their liquidity positions so when users stake their LP tokens, they are going to earn emissions as $CHR tokens over time.
Whitelisted users on Chronos will have a guarantee of minting on the 1st round on March 29th, 4PM UTC.
All missing rewards will appear in the UI tomorrow.
The team is going to open a new fusion pool for the $LQDR/$BNB on Thena and it’s going to be a Uniswap v3 type of pool with concentrated liquidity and automatic management which will be released in the next epoch.
3/ Sei Network - Market Making, Liquidity and MEV
Preview: In this Twitter Spaces, Sei Network is joined by Skynet Trading to discuss about market making, liquidity, market making in DEXs, finality and MEVs. Click here to listen to the full episode.
Length: 47 mins | OUR NOTE: 5 mins
Here are some key takeaways:
Market makers generally operate in a delta-neutral environment where they aim to maintain a balance between their long and short positions.
One of the key factors that determines the level of inventory risk for market makers is price volatility. If there is high volatility in the market, it can be challenging for market makers to maintain a delta-neutral position because the value of their assets may fluctuate rapidly.
Market makers need to ensure that they have sufficient liquidity to execute trades at their quoted prices, and they need to be able to adjust their prices in response to changes in supply and demand.
On decentralized exchanges (DEXs), market making can be more challenging due to the fragmented liquidity and regulatory uncertainty.
However, there are also opportunities for market makers to leverage on-chain solutions for risk management.
On the Revelo Intel platform, we’ve summarized these 3 episodes and in total, would have saved you: 2 hours and 25 minutes!
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Note of the Day
Millennium Club Discord AMA with Chronos Finance
In this Millennium Club Discord AMA, the team of Chronos Finance joins to discuss Chronos Finance, why zero rebase is better, and answers questions from the community!
Read or listen to our notes to learn more.
Chronos Finance Team Intro
Satsy is a co-founder of Chronos Finance. Satsy has been investing in Web3 and DeFi for three years and invested in Solidly forks.
0xCronos is the CEO and co-founder of Chronos Finance and has been in crypto for over five years, starting as a retail investor and later creating a DeFi protocol on Polkadot.
Unified is a firm believer in building the world's future global financial infrastructure and has been active on the Fantom Network for a long time.
Levy has been involved in crypto since 2014 as a retail investor and moved to more sophisticated DeFi use in 2022, diving deep into the Solidly model.
Chronos Finance
Chronos Finance is a decentralized exchange forked from Thena, focused on combining NFTs and DeFi to add value to Arbitrum.
Innovations include the zero rebase model and maturity LPs to combat inflation and incentivize long-term liquidity provision.
Chronos is a community bootstrap protocol, raising funds through their chrNFT fundraising event and excluding private investors or venture capital.
The Reliquary model and maturity-adjusted liquidity NFTs aim to create stable and sticky liquidity.
The team emphasizes quality, prioritizing smart contracts, audits, bug fixing, and a smooth UI/UX.
Certik audited their chrNFT mint, and a Bug Bounty program with Immunefi is forthcoming.
Chronos Finance has partnered with Firebird Finance and Liquid Driver, aiming to launch the DEX and token shortly after the chrNFT Mint.
The project benefits from lessons learned from other projects, incorporating features from Thena, Velodrome, and Equalizer while considering the use of fully immutable contracts.
Example of Why Zero Rebase is Better
Example: $100,000 revenue for a week with 100,000 locked tokens, each token gets $1 yield.
Rebase is a 30% increase in locked tokens, resulting in 130,000 tokens voting.
Revenue remains the same at $100,000.
Revenue per token/vote decreases to $0.70 instead of $1.
Rebasing doesn't create more yield or revenue, only changes the proportion of revenue for each voter token.
The voter receives rebase but tokenomics are affected, yielding $0.70 instead of $1.
The incentive for liquidity providers is negatively impacted, as a higher APY drives a higher token price.
Over time (1-4 years), the DEX must generate more revenue to maintain the same pricing on the DEX token.
veNFT Liquidity Mechanism
The veNFT liquidity mechanism promotes long-term commitment from liquidity providers by tracking token contributions, stake size, and staking duration.
Earning boosts increase with longer staking periods, incentivizing providers to maintain their positions.
The mechanism encourages stickier liquidity and requires users to balance the benefits of moving liquidity against losing their earnings boost.
Early liquidity providers are rewarded with additional emissions by staking ahead of the maturity curve.
Liquidity positions with the boost intact can be sold on NFT exchanges.
This system supports new projects by encouraging early staking, fostering growth in their liquidity pool and user base.
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Liquidity Layer on Arbitrum
OlympusDAO plans to expand its treasury to L2s, Optimism, and Arbitrum, and the Chronos team might approach Olympus for collaboration discussions in the future.
The veNFT position may not rely on LP emissions boost due to the possible replacement by the Reliquary system.
The team aims for an equitable approach based on time value, favoring long-term participants.
They are focused on creating a top liquidity layer on Arbitrum using a new, unique model.
A two-year vesting period for the team's liquid tokens showcases their long-term commitment.
The veNFT liquidity mechanism incentivizes liquidity providers to maintain their positions and makes liquidity pools stickier by using NFT representations and altering the game theory for providers and bribers.
Liquidity Evolution on Arbitrum
Early liquidity providers in a pool benefit from higher emissions and yields, allowing projects to build their treasuries by purchasing liquidity from other protocols.
The system can act as a launchpad for new projects, fostering symbiotic relationships and strengthening the Arbitrum ecosystem.
Swap fees can change dynamically, providing future upgrade potential, but will initially be set and not part of the white-listing process for new projects.
Variable fees based on TVL and volume could boost revenues and rewards for NFT stakers and token holders, with automated fee adjustment mechanisms offering potential efficiency improvements.
Q&A
Q: Will users be able to set swap fees when creating a new gauge?
At launch, the fees will likely be set as they are, with the same fees for all pairs.
However, the ability to change fees has been built in for possible future adjustments.
Q: When will the chrNFTs launch?
The chrNFTs are launching on March 29th.
Funds raised from the NFT sales will be used for team expenses, development, audits, and adding liquidity to the token and its pairs.
Q: Can PlutusDAO build a liquid wrapper for veNFT?
PlutusDAO can develop a liquid wrapper for veNFT, which might result in them gaining more control over the veNFT and voting power.
Q: Are there plans to implement automated fee adjustments based on TVL and volume?
At the moment, there are no plans to implement such a feature, but the ability to change fees leaves the door open for possible future upgrades.
Q: How can someone get white-listed for the NFT launch?
To get white-listed, one needs to take a screenshot of the event, go to their Discord channel, and drop the image in the general chat asking for a whitelist.
Q: How many NFTs can be minted with one whitelist?
There will be three rounds of minting. In the first round, white-listed people can mint one NFT, while OG role holders can mint five.
In the second round, white-listed people can mint two NFTs in total, and OG role holders can mint ten.
If there is supply left, there will be a third round for public sale.
The OG role is given to team members of partnered protocols and to people who actively support and contribute to the Chronos community.
This can include helping others in the chat, making good threads on Twitter, answering questions, and more.
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