Convex Finance passes $1 billion in total value locked

Convex has surpassed $1 billion in total value locked (TVL) stepping into the mainstream and grabbing the attention in the DeFi sector.

Convex Finance passes $1 billion in total value locked

Convex Finance, the Ethereum based protocol cracked a billion dollars in TVL earlier today, rising as high as $1.14 billion and briefly cracking the top-20 by size.

The team said, “We are blown away with the amount of support our platform has received. We're very grateful for everyone who shares our vision. The community getting the word out has been the major contributing factor, as well as a show of support from the Curve team.”

Convex is developed to be an optimizer for the Curve protocol, which enables swaps of similar assets such as between different stablecoins or ETH and Lido’s staked ETH. The native CRV token has a timelock functionality, where users stake CRV for four years in exchange for veCRV, which allows users to “boost” the rewards for staking in Curve pools.

“We want to extrapolate the complex things away, like how much veCrv is needed to boost how much liquidity. But we also want to be open enough to show everyone what's going on behind the scenes and the benefits we provide,” said c2tp of Convex’s services. “On top of veCrv to liquidity balance, locking a token for four years can be a big step for most people. We hope our system gives confidence in the value of our tokens so that you can join the ecosystem while still remaining liquid.”

Some observers have claimed that because Convex optimizes Curve positions the project is a threat to Yearn Finance, whose yield vaults rely heavily on Curve. However, c2tp rejected this notion, stating that Yearn and Convex both compliment each other in what’s ultimately a positive-sum DeFi ecosystem:

“We don’t really see it as direct competition. There are different platforms with different goals. There is also a lot to gain when platforms integrate with each as part of the larger defi system. We encourage anyone to use what we have to offer as well as build on top. Defi is not a winner takes all, but something that becomes stronger as all the pieces fit together.”

In addition, a Yearn representative dismissed the notion of the protocols being in battle with each other, noting that a large portion of Convex’s TVL is delegated by Yearn.

“We love to see it,” said Weaver, a member of Yearn’s growth team of Convex’s success. “Many in crypto spend their time looking for ways to pit tribes against each other, but zoom out today and you see 19M additional veCRV boosting Yearn vaults, thanks to Convex. You asked if this was a vampire attack on Yearn. I don't know what the opposite of that is, but this new lego is pumping boosties into Yearn.”