Convergence Finance, a DeFi governance and liquidity protocol, has outlined a new integration strategy with Convex Finance that centers on launching **two new liquid lockers for CVX** and deepening its role in the **Frax** ecosystem. According to the project’s Medium announcement, Convergence plans to deploy separate liquid locking products that will allow users to lock CVX to access boosted governance and yield while retaining a liquid representation of their position, in line with its broader model of accumulating governance power and optimizing returns across protocols such as Curve, Convex, and Frax. These lockers are designed to direct more voting power and liquidity incentives through Convex into Frax-related pools and strategies. This move fits into Convergence’s stated goal of acting as a **governance hedge fund and liquidity provider** that aggregates and actively uses governance rights across multiple DeFi protocols. By building specialized CVX liquid lockers that are aligned with Frax, Convergence aims to influence gauge votes and reward flows more efficiently within the Frax ecosystem, while offering its own users enhanced yield-sharing via its “Govearn” revenue distribution design. In practice, the integration could tighten the linkage between Convex, Frax, and Convergence, increasing competition for CVX governance power and potentially concentrating more control over Frax- and Curve-related incentives in the hands of meta-governance platforms. **Key entities mentioned**: - **Convergence Finance (CVG)** – DeFi governance hedge fund and liquidity provider protocol. - **Convex Finance (CVX)** – Yield optimization and meta-governance protocol built on Curve, whose token is being integrated via liquid lockers. - **Frax / Frax Finance** – DeFi protocol and stablecoin ecosystem receiving deeper integration and liquidity alignment through Convergence’s Convex strategy. - **Curve Finance** – Underlying AMM and gauge system whose incentives Convex and Frax integrations build upon. - **CVX liquid lockers** – The new Convergence products that tokenize locked CVX positions for liquidity and governance use.

✨ AI-generated background, compiled from web sources — not editorial content.

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