Convex Finance Becomes Second Largest DeFi Protocol with $20 Billion in TVL

Convex Finance is a DeFi staking project and liquidity pool for Ethereum-based tokens. Convex Finance has become the second-largest staking pool in the crypto market with $120 billion added in TVL or Total Value Locked. With the current amount of TVL, Convex Finance has become the second-largest liquidity provider in the entire cryptocurrency market.

However, the first placeholder in the market is Curve, with $24 billion locked in assets. The increasing value of TVL at Convex Finance has allowed the platform to compete alongside market leaders like Aave and MarkerDAO. At present, TVL at Convext Finance is valued at the combined TVL of both DeFi liquidity pools.

The investors who want to earn yields have dubbed Convex as one of the blue-chip projects. Convex and Curve exchanges are working in tandem with each other to maximize the productivity yield for its liquidity providers. The most TVL is noted in the stablecoin pools at Convex.

CRV is the native token of Curve that allows the investors to earn yield rewards, voting privileges, and as well as a portion of the trading fee commission. However, the token investors need to lock their stablecoins for at least 4 years according to the rule of the vote escrow mechanism.

CRV investors have recently added Convex into the DeFi 2.0 projects operating in the market at the time. The CRV traders and stake-position owners can earn a trading fee commission through Convex, as well as CVX tokens and CRV staking yields. The new mechanism has been active on the network for the last 8 months.

As confirmed by CoinGecko, CVX native to Convex is currently trading at $48.05 with a 116% uptrend during the last month. Other staking pools like Yearn.finance and StakeDAO have also added support for CRV staking. Meanwhile, Dopex Finance is offering an open vault option for the CRV holders to generate profits. There is currently a race in the DeFi market for adding more CRV tokens in the native staking pool dubbed as Curve Wars.