I am talking about a metal bicycle type chain.
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The chain “stretches” because it wears. The holes get a little bigger and the pins a little smaller. So the distance between pins increases a bit, and the chain may not fit the gears so well.
The joints of the chain get gummed up with old oil, dirt and grit, which makes them have difficulty completely straightening out due to friction. Oiling the chain removes that friction and helps clear out some of the gunk, allowing all the links to straighten completely, making the chain seem longer
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