While much of the market reels from a devastating pullback that has dragged DeFi\u2019s closely-watched total value locked (TVL) figure down from all time highs, one protocol is shrugging off the macro weight and surging up the TVL leaderboard.\u00a0<\/p>\n
Ethereum-based Convex Finance ($CVX) cracked a billion dollars in TVL earlier today, rising as high as $1.14 billion and briefly cracking the top-20 by size, per DeFilama. <\/p>\n
Convex team lead \u201cc2tp\u201d told Cointelegraph in an interview that the team has been overwhelmed by the support.<\/p>\n
\u201cWe 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,\u201d they said.<\/p>\n
Convex is designed to be an optimizer for the Curve protocol, a platform that enables swaps of similar assets such as between different stablecoins or ETH and Lido\u2019s staked ETH. Its CRV token has a timelock functionality, where users stake CRV for four years in exchange for veCRV, which allows users to \u201cboost\u201d the rewards for staking in Curve pools. <\/p>\n
\u201cWe 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,\u201d said c2tp of Convex\u2019s services. \u201cOn 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.\u201d<\/p>\n
The launch has not been without drama, however. 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.<\/p>\n
However, c2tp rejected this notion, saying that Yearn and Convex compliment each other in what\u2019s ultimately a positive-sum DeFi ecosystem:<\/p>\n
\u201cWe don\u2019t 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.\u201d<\/p><\/blockquote>\n
Likewise, a Yearn representative dismissed the notion of the protocols doing battle with one another, noting that a large portion of Convex\u2019s TVL is delegated by Yearn.\u00a0<\/p>\n
\u201cWe love to see it,\u201d said Weaver, a member of Yearn\u2019s growth team of Convex\u2019s success. \u201cMany 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.\u201d<\/p>\n