As much of the market reels from a devastating pullback that has dragged DeFi’s carefully watched Complete Worth Locked (TVL) down from its all-time highs, a log is shaking off macroweight and lifting the TVL leaderboard.
Ethereum-based Convex Finance ($ CVX) currently cracked $ 1 billion in TVL, climbed to $ 1.14 billion, and briefly cracked the top 20 by dimension, according to DeFilama.
2 weeks, three commas.
$ 1,000,000,000 + TVL pic.twitter.com/NDOVabZB11
– Convex Finance (@ConvexFinance) June 1, 2021
The chief of staff of Convex “c2tp” told Cointelegraph in an interview that the staff was overwhelmed by the support.
“We are overwhelmed with the support our platform has received. We are very grateful to all who share our imagination and foresight. Public relations was a key issue along with pointing out the support provided by the Curve staff, ”they said.
Convex is designed as an optimizer for the Curve protocol, a platform that enables objects like these to be switched between completely different stablecoins or ETH and Lidos. Its CRV token has a timelock property that allows customers to take turns using CRV for veCRV for 4 years, which allows customers to “increase” the rewards for bets in curved swimming pools.
“We would like to extrapolate away the advanced problems, for example how much veCrv is needed to expand liquidity. But we also want to be open enough to point out what is going on behind the scenes and what advantages we offer, ”said c2tp about the providers of Convex. “Along with veCrv for liquidity balancing, blocking a token for 4 years is usually a big step for most people. We hope that our system instills confidence in the value of our tokens in order to be part of the ecosystem and still remain liquid. “
The beginning was not without drama, however. Some observers have claimed that the mission poses a threat to Yearn.Finance as Convex optimizes the Curve positions, the Return Vault of which is heavily reliant on Curve.
So @ConvexFinance took to the world to compete with @iearnfinance and @StakeDAOHQ and fight to fully tie your $ CRV to #veCRV
They do this by offering great agricultural incentives ($ SUSHI, $ CVX, $ SDT).
This fight has only one big winner: pic.twitter.com/Fl8bG6bd80
– SEM (@ 0xSEM) May 18, 2021
Nevertheless, c2tp rejected this idea and said that Yearn and Convex complement each other in a finally constructive DeFi ecosystem:
“We don’t actually see it as a direct competitor. There are very different platforms with very different goals. Much can also be gained in integrating platforms with each as part of the larger Defi system. We encourage everyone to benefit from and build on what we have to offer now. Defi shouldn’t be a winner who wants it all, but one thing gets stronger when all items go together. “
Likewise, a Yearn advisor rejected the notion that the protocols were inconsistent, noting that much of the Convex TVL was delegated by Yearn.
“We are very excited to see this,” said Weaver, a member of the Yearn development team, of Convex’s success. Many cryptocurrencies spend their time looking for ways to pit tribes against each other, but zoom out right now and you will find that 19 million additional veCRV are increasing Yearn vaults due to Convex. You asked if this was a vampire attack on Yearn. I don’t know what the alternative to that is, but this new Lego is pumping buoyancy into Yearn. “