If you hold Convex $CVX Beware of Unlock (Patreon)

Over a quarter of the supply of Convex Finance (CVX) is about to be unlocked, spurring fears about a further price decline. This comes as the amount of liquidity on the platform — which can help absorb selling pressure — has shrunk considerably.

Right now, Curve's main pool for CVX tokens is balanced. Data from Curve shows there's currently about $11.2 million of wrapped ETH available as potential liquidity, alongside over $11.8 million of CVX tokens.

But come June 30, about 27.4 million CVX coins worth over $126 million will be unlocked, according to this Dune Analytics dashboard. This figure amounts to over 27% of the total Convex token supply.

These unlocked tokens are the first of 16 unlocks for vote-locked CVX tokens that will happen once a week from June 30. In total, 52.2 million CVX tokens will be unlocked.

Convex is a DeFi protocol built on top of Curve (CRV) which is a decentralized exchange for token swaps. Convex provides a platform for CRV holders to stake the token and compound rewards from Curve.