The Great cvxCRV Lockening, DeGods NFT Collection, DeFi Option Vaults

Chart of The Day: The Great cvxCRV Lockening

• Convex Finance has experienced a record-breaking period which is being dubbed the “Great Lockening.” The protocol received its largest supply increase of cvxCRV within any two-week period since its inception. Since June 27th, a whopping 35M CRV has been locked, taking the total supply of cvxCRV up to ~274M.
• This massive increase in cvxCRV supply was primarily driven by the recent proposals by Frax and Convex. Previously all the CRV farmed by Frax was being sold. Now, Frax has been admitted to the veCRV whitelist and will adhere to the following conditions:
  • Lock at least 5% of CRV farmed as veCRV
  • Use the remaining CRV to support the cvxCRV peg or convert it directly into cvxCRV
• Since Frax is the largest stablecoin player in the Curve ecosystem and also a massive holder of CVX, this proposal’s importance cannot be understated. Having Frax help maintain the cvxCRV peg is a huge advantage to Convex and the Curve ecosystem.
• Currently, cvxCRV is absorbing significantly more supply than is being emitted to Curve pools through gauge emissions. The percentage shown in the chart above being greater than 100% indicates that either old CRV, or CRV supply from investor and team tranches is also being locked into cvxCRV.
• The massive increase in cvxCRV supply equates to more gauge power controlled by each CVX, thus allowing Convex to direct a larger share of Curve’s future emissions. Each locked CVX now controls over 5.4 max locked veCRV, a ratio