Cryptocurrency News

Potential year rival Convex Finance exceeds $1 billion in total locked value

While most of the market reels from a disastrous pullback that pulled DeFi’s closely watched Total Value Lock (TVL) below all-time highs, one protocol is shedding the macro weight and raising the TVL leaderboard. is.

Ethereum-based Convex Finance ($CVX) reported a $1 billion drop in TVL earlier today, rising to $1.14 billion and briefly breaking the top-20 by size, per DeFilama.

Convex team lead “c2tp” told Cointelegraph in an interview that the team is overwhelmed with the support.

“We are overwhelmed with the amount of support our platform has received. We are very grateful to all who share our vision. Getting the community out there has been a major contributing factor, as well as a show of support from the Curve team,” he said.

Convex is designed as an adapter for the Curve protocol, a platform that enables swaps of similar assets such as between different stablecoins or ETH and Lido staking ETH. Its CRV tokens have timelock functionality, where users stake the CRV for four years in exchange for the VCRV, which allows users to “boost” the prizes of betting in the curve pool.

“We want to take away the complicated things, like how much liquidity boost veCrv needs to do. But we also want to be open enough to show everyone what is going on behind the scenes and what we do. To balance liquidity on top of VCRV, locking tokens for four years may be a big step forward for most people,” said c2tp of Convax’s services. We hope our system provides confidence in the value of our tokens so that you can join the ecosystem while still being liquid.”

However, the launch was not without drama. Some observers have claimed that since the convex curve favors the situation, there is a danger to the project. Yearn.Finance, whose yield depends heavily on the Vault Curve.

However, c2tp refuted this notion, saying that Ear and Convax compliment each other on what is ultimately a positive-even DeFi ecosystem:

“We don’t really see it as direct competition. There are different platforms with different goals. There is a lot to be gained when the platforms are integrated with each as part of the larger DeFi system. We encourage anyone Let’s make use of what we have on offer and at the same time build on top. DeFi isn’t a winner that takes all, but something that gets stronger because all the pieces fit together.”

Similarly, an Eyre representative rejected the notion of protocols at war with each other, noting that a large part of Uttal’s TVL is delegated by Yarn.

“We love to see it,” said Weaver, a member of Convax’s Success Year growth team. “Many people in cryptocurrency spend their time looking for ways to pit tribes against each other, but today zoom out and you see an additional 19M veCRV eyron vault growing, thanks to Convex. You asked what It was Vampire Attack on Yarn. I don’t know what the opposite is, but this new Lego is pumping boost to Yarn.