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

cointelegraph.com:

The battle to attract stablecoin liquidity has been a trending theme across the cryptocurrency landscape for the past year, especially as decentralized finance users have come to realize the hefty APY that can be earned on dollar-peg assets.

While Curve Finance remains the undisputed leader in interest bearing stablecoin liquidity pools, several new entrants have begun to climb the ranks, including Vector Finance (VTX), a protocol that enables Avalanche network users to generate boosted yields on their stablecoin positions.

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

Here’s a look at the factors that have helped spark a reversal in VTX price and point to an increase in the utilization of the Vector Finance protocol.

One sign pointing to increased inflows to Vector Finance is the rise in the total value locked (TVL) on the protocol, which reached a new all-time high of $405.15 million on May 4 according to data from Defi Llama. This is notable due to the fact that it came during a time of widespread weakness across the cryptocurrency market. 

The rise in TVL comes as the platform integrated new pools fromTrader Joe, which offer a maximum yield of 69.6% for deposits of JOE/USDC liquidity providers.

Vector also offers single staking capabilities for VTX, Platypus Finance and JOE with yields of 12.8%, 144.9% and 117% respectively.

Related: Avalanche (AVAX) loses 30%+ in April, but its DeFi footprint leaves room to be bullish

Vector finance also added support fo Frax Shares, MIM and UST, with yields ranging from 7.3% to 15.1%.

Yields for USD Coin (USDC) and Tether (USDT) range from 5.1% to 8.0%, while