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Convex Financial Token Surges 100% as Weekly veCRV Flows Soar
CVX price saw triple-digit percentage gains over the past 24 hours as inflows into the veCRV ecosystem reached their highest level in years.
Convex Finance, which owns the largest share of veCRV, has seen the price of its native token increase.
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Posted June 17, 2024 at 2:37 am EST.
Curve wars intensify as vote-backed CRV (veCRV) token inflows totaled 19.67 million CRV tokens, six times the weekly inflation rate.
Data shared by decentralized exchange Curve Finance watch that these flows represented not only direct token locks, but also locks through platforms like Convex Finance, StakeDAO, and Yearn.
For context, while CRV is the native token of Curve Finance and plays a role in incentivizing liquidity providers and governing the protocol, users can acquire veCRV to lock their CRV for a period of time between one week and four years.
Each CRV token locked for a period of four years represents a veCRV token, and the longer users lock their CRV, the more voting power they have and the more opportunity they have to increase their CRV rewards.
Curve Finance allows veCRV holders to vote on CRV issuances, and protocols within the ecosystem compete to acquire the most veCRV tokens, so they can offer higher rewards in their liquidity pool . So far, the most successful in this game, known as “Curve Wars”, are Convex Finance, StakeDAO and Yearn.
Convex Finance holds the largest share of veCRV, with just over 41% of the tokens, followed by Yearn Finance and StakeDAO, according to data from a Dune dashboard created by “@stablecamel”.
With the massive increase in flows to veCRV, it is no surprise that Convex Finance has been one of the biggest beneficiaries, with its native token CVX. surging 100% in the last 24 hours priced at $4.55 at the time of writing.
Coinglass data watch This trading volume for the CVX/USDT perpetual trading pair on crypto exchange Bybit jumped 9,100% during the same period to reach $134.5 million.
Market participants also believe that recent liquidation The positions of Curve founder Michael Egorov will be a net positive for the Curve ecosystem and its major players such as Convex.
“With Mitch’s massive surplus of CRV collateral liquidated in the market, it’s just fundamentals from here on out for CVX,” wrote Jason Hitchcock, ecosystem manager at Web3 development company ThirdWeb, on
“Convex has captured Curve, Frax, fF(x)n, Prisma and more will come. They receive a large portion of all their fees and have established significant incentive markets for them.
June 17, 3:49 a.m. AND : Title updated for clarity