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It is unknown who actually created the Chakram and for what purpose but initially two were created. Yin and Yang. The light half could only be touched by the purest of souls and could slay even the Gods. The dark half could be used by anyone who was tainted by darkness and used to kill with great effect.
Once fused together they lost the power to slay gods and to only be wielded by a pure soul and instead gain the ability to separate into two different section each able to ricochet and act independently.
Both are nigh invulnerable and have never been broken. It withstood the powers of gods and every weapon used against it divine or otherwise.
It has an uncanny Ricochet ability which can often be guided by very skilled warriors such as Xena
. It is also superhumanly sharp able to rend the strongest weapons with ease. The only substance shown to be almost as durable was weapons forged by Hephestus of the GODS.