Convex Finance Rises to the TopScroll Down
The cryptocurrency market is reeling from a huge pullbag that dropped the total value locked of DeFi down from its all-time high price point. However, one protocol is surging ahead despite the overall trend. Convex Finance, which is based on Ethereum, cracked $1 billion USD on Tuesday, June 1. It went as high as $1.14 billion USD. This allowed it to broach the top 20 list.
The Convex platform is a control technology platform. It has been overwhelmed by the support. The leadership was blown away by everyone who shares the vision. They are thrilled about the word-of-mouth recommendations and the show of support offered by Curve.
Convex optimizes the Curve protocol. Curve enables swaps of similar stable coins, Ether and Lidos that are staked in ETH. Its native token, the CRV, has a time-lock function of four years. Those who put it in escrow get rewarded. The team wants to boost its liquidity while also making sure it provides a lot of behind-the-scenes benefits for investors. They hope the updates they have made gives a high sense of confidence in the tokens.
Even so, the launch had its share of drama. Some observers argued that Convex optimizes Curve and is therefore a threat to Yearn Finance. Yearn Finance heavily depends on Curve's vaults. Others rejected that, saying that Convex and Yearn are complementary. They don't see each other as direct competitors. DeFi isn't like a pie in that one slice grows and another shrinks.
Representatives from Yearn agreed with the statements above from a representative of Convex. yearn stated that the idea of protocols battling with each other is nonsense. They added that a big chunk of Convex's total locked volume is delegated from Yearn. The representative from Yearn said they love seeing the growth and success of Convex. A lot of people in the cryptocurrency world waste time finding ways to pit tribes against each other. Yearn doesn't do that. Convex also doesn't engage in that behavior. It seems that representatives from both businesses are excited about their own future growth and of their ongoing cooperation in cryptocurrency.