The stablecoin yield optimizer Convex Finance has become the second-biggest protocol by total value locked.
Convex has roughly $21.3 billion locked value, trailing only Curve Finance.
The protocol has taken a central role in a battle for DeFI liquidity that’s been dubbed the “Curve wars.”
Share this article
Convex Finance is now the second-largest DeFi protocol with over $21 billion in total value locked.
Convex Finance Jumps to Second-Ranked TVL
Convex Finance now holds the second-highest amount of liquidity in DeFi.
The stablecoin yield optimizer hit $20 billion in total value locked for the first time over the weekend and now holds around $21.3 billion. The most liquid DeFi protocol, Curve Finance, holds just over $24 billion. After the latest jump, Convex holds more value than the likes of Aave and MakerDAO—two early DeFi projects that launched on Ethereum and are often referred to as “blue chips” of the ecosystem.
Convex works in tandem with Curve in that it lets liquidity providers maximize the yields they can earn on Curve’s stablecoin pools. Curve’s native token, CRV, gives token holders a claim on a portion of the trading fees, staking rewards, and voting power in the protocol’s governance. CRV holders are required to lock up their tokens for up to four years as part of a mechanism called vote escrow.
While Curve has been around since DeFi first started to gain traction on Ethereum, Convex is part of a newer group of projects that fall under the so-called “DeFi 2.0” banner. It launched in May 2021 and created value by letting CRV holders earn high liquidity mining rewards without extensive locking periods. That means CRV holders and Curve liquidity providers can deposit their tokens via Convex to earn Curve’s trading fees, CRV token rewards, and CVX tokens. This incentive system explains the protocol’s explosive growth over the last eight months.
Convex is not the only DeFi project to have sought liquidity from CRV holders. Other established projects like Yearn.Finance and StakeDAO have competed with Convex by offering incentives to attract CRV holders to lock their tokens, while Dopex Finance has given market participants a way to profit from via options vaults. This environment has been dubbed the “Curve wars,” where projects compete to ensure that their Curve Pools receive more CRV rewards.
Convex’s CVX token has benefited from the recent activity and growth in the protocol’s total value locked. According to data from CoinGecko, it’s currently trading at $48.05, up 115.9% in the last 30 days.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Yearn and Convex Are Competing for Curve Tokens
Optimizing yield on Curve Finance’s pools is Yearn Finance’s bread and butter, but newcomer Convex Finance is gaining rapid traction as the two DeFi protocols fight for Curve’s liquidity provider…
Curve Breaks Yearly High As Token Supply Dwindles
Curve has broken past its April highs, fueled by increased demand for CRV tokens and a low circulating supply. Curve Breaks Out CRV tokens are in high demand. The DeFi…
Aave and Curve Finance Join DeFi’s Billion Dollar Club
DeFi is growing exponentially, adding a billion dollars of collateral locked in a mere two days. Aave and Curve have been the most potent drivers, as each project smashed past…
Audience Survey: Win A $360 Subscription To Pro BTC Trader
We’re doing this because we want to be better at picking advertisers for Cryptobriefing.com and explaining to them, “Who are our visitors? What do they care about?” Answer our questions…