Convex Finance: 2nd largest DeFi protocol with $20B in TVL
Ethereum-based DeFi protocol Convex Finance on Monday surpassed $20 billion in Total Value Locked (TVL). At press time, its TVL stood at $20.77 billion, making it the second-largest DeFi protocol after Curve Finance.
Convex Finance allows Curve liquidity providers to boost their CRV staking in order to maximize yields. Users can convert their yield farming rewards, issued as CRV tokens, into vote-escrowed CRV (veCRV). The veCRV tokens allow holders to participate in network governance and earn higher rewards.
The network, which currently only focuses on Curve Finance, will now move towards Frax Finance stablecoin ecosystem as well.
With added support for Frax Finance, the protocol’s TVL might move forward to surpass Curve Finance, which currently stands at $24.19 billion in TVL.
In addition, Convex Finance’s native token CVX reached its All-Time High of $60.22 on December 27, 2021. It recorded a surge of more than 215% from December 4, when it was trading at $18.79, according to CoinGecko. At at the time of writing, the coin was exchanging hands at $48.49, down by 2.7% from the previous day.
The network had been recording steady growth since its launch in May 2021. Convex locked in about $68 million just after its launch and about $1 billion just one month after going live.Source