The cryptocurrency Convex Finance ($CVX) is experiencing a significant surge in demand and potential supply crunch as protocols increasingly acquire and hold the token to secure the cheapest liquidity on Curve Finance. With a fixed supply of 100 million $CVX tokens and growing adoption of Curve, there's a growing consensus that there aren't enough tokens to meet demand. Additionally, decentralized autonomous organizations (DAOs) are developing mechanisms to accumulate and lock $CVX for future liquidity needs, further tightening the supply. Notably, a collaboration involving CVX5's team and Asymmetry Finance highlighted that 30% of Ethereum deposited into a Liquidity Staking Derivative (LSD) vault would be used to purchase $CVX, translating to significant buy pressure as the vault's total value locked (TVL) reaches 100M, equating to $30M in $CVX buy pressure. This scenario underscores the strategic importance of $CVX in the decentralized finance (DeFi) ecosystem, particularly for DAOs and stablecoin projects seeking to enhance their liquidity, with a 30% backing of $vlCVX per ETH token minted.