Vector Finance (VTX) TVL hits a record high as the Curve Wars shift to Avalanche

The battle to attract stablecoin liquidity has been a trending theme in the cryptocurrency landscape over the past year, with decentralized financial users in particular realizing the huge APY that can be earned on dollar-pegged assets.

While Curve Finance remains the undisputed leader in the interest of stablecoin liquidity pools, several new entrants have begun to climb the ranks, including Vector Finance (VTX), a protocol that allows Avalanche Network users to increase their stablecoin positions. Enables production of

Data from CoinGecko shows that the price of VTX has recently reversed a trend as its price climbed 52% from its May 1 low of $0.39 to a daily high of $0.60 on May 4.

Here is a look at the factors that have helped VTX price reversal and point to an increase in the use of the Vector Finance protocol.

Total value locked reaches a new high

Pointing to increased inflows into Vector Finance, the total value locked (TVL) on the protocol has increased, reaching a new high of $405.15 million on May 4, according to data from DeFi Lama. This is notable due to the fact that it came at a time of widespread weakness in the cryptocurrency market.

The growth in TVL comes in the form of a new pool integrated into the platform from Trader Joe’s, which offers a maximum yield of 69.6% for deposits from Joy/USDC liquidity providers.

Vector also offers the ability to place single bets for VTX, Platypus Finance and Joy with returns of 12.8%, 144.9% and 117% respectively.

related: Avalanche (AVAX) Dropped Over 30% in April, But Its DeFi Footprint Has Bullish Room

Vector Finance also added support for FX shares, MIM and UST, with yields ranging from 7.3% to 15.1%.

USD Coin (USDC) and Tether (USDT) have yields ranging from 5.1% to 8.0%, while Wrapped DAI (DAI.e) deposits can earn 3.1%.

Vector is also focused on accumulating voting power within the Platypus and Trader Joe’s ecosystem by offering yields of 137.3% for xPTP-PTP deposits and 129.4% for zJOE-JOE deposits.

Users who choose to provide liquidity in these pools can earn an additional 136.9% APY on top of the earnings earned by betting individual PTP and JOE tokens on Vector Finance.

Another advantage that attracts liquidity could be bonus rewards of up to 70% for VTX holders who chose to lock their tokens for 16 weeks.

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