Curve is one of the largest total value locked platforms in the market at the moment with Total Value Locked volume up to $17b.
However, if you do not provide a large amount of liquidity on the platform, then the reward received will be quite low. Therefore, Convex Finance was born to solve this problem.
The following article will introduce you to the information you need to know about the Convex Finance project. Let's find out together.
What is Convex Finance?
Convex Finance offers an innovative DeFi protocol built on top of stablecoin exchange Curve Finance. At its core, Convex rewards curve liquidity providers and CRV stakers with additional yields for users with their minimal efforts.
Unlike other platforms that charge trading fees to pay for gas, Convex Finance has no withdrawal fees and minimal performance fees. CRV stakers and liquidity providers will receive their rewards in the form of CVX.
How does Convex Finance work?
The features that the product offers are pretty simple, however, all and all they aim to provide an easy way for Curve users to earn more rewards with minimal effort.
CRV stakers are rewarded with a share on the platform when they stake CRV tokens. The benefits are listed as below:
- Earn a share of the Convex platform fees in CRV.
- Earn trading fees from the Curve platform (3CRV).
- Receive liquid cvxCRV allowing anyone to exit their staked CRV position.
- Receive CVX rewards.
- Claim veCRV airdrops such as EPS (airdrop distribution will be done to the best of our abilities. Will require cooperation from the other platforms).
While liquidity providers can earn trading fees and claim boosted CRV without locking CRV for themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort:
- Earn claimable CRV with a high boost without locking any CRV.
- Earn CVX rewards.
- Zero deposit and withdrawal fees.
- Zero fees on extra incentive tokens (SNX, etc).
What is CVX token?
CVX is the native token of the platform. The token has the following use cases:
- CVX can be staked on Convex Finance to earn a share of Curve LP's CRV earnings.
- Staked CVX will receive its portion of the fees as cvxCRV (tokenized veCRV). This is to keep CRV in the system building boost, but users can trade out their cvxCRV through the cvxCRV/CRV liquidity pool.
- Convex CRV fees that would be returned to CVX stakers are locked in veCRV, and tokenized as cvxCRV and given to the CVX stakers.
- CVX is used for voting on how Convex Finance allocates it's veCRV towards Curve.fi gauge weight votes. Users must vote-lock their CVX tokens in order to participate. Full details on the "Voting and Gauge Weights" page.
Detailed information about CVX token
CVX Token Metrics
- Token Name: Convex Token.
- Ticker: CVX.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x4e3fbd56cd56c3e72c1403e103b45db9da5b9d2b
- Token type: Utility.
- Total Supply: 100,000,000 CVX.
- Circulating Supply: 32,730,934 CVX.
CVX Token Allocation
The total supply of CVX will be distributed as follows:
CVX Token Release Schedule
- Max Supply: 100 million.
- 50% Curve LP rewards: Rewarded pro-rata for CRV received on Convex.
- 25% Liquidity mining: Distributed over 4 years. (Incentive programs, currently CVX/ETH and cvxCRV/CRV).
- 9.7% Treasury: Vested over 1 year. Used for future incentives or other community-driven activities.
- 1% veCRV holders: Instantly claimable airdrop.
- 1% veCRV holders who vote to whitelist Convex: Instantly claimable airdrop.
- 3.3% Investors Vested over 1 year: 100% of investment funds used to pre-seed boost and locked forever(no cvxCRV minted).
- 10% Convex Team: Vested over 1 year.
How to buy CVX token
Alternatively, you can buy CVX on these listed exchanges:
- DEX: Sushiswap, Uniswap...
- CEX: Gate.io, OKEx, Hotbit...
Alternatively, you can use Coin98 Exchange to swap other tokens for AVAX by clicking the Swap button at the end of the article.
Learn more: How to use Coin98 Exchange
How to get CVX token
CVX is rewarded to CRV stakers and Curve.fi liquidity pools pro-rata to CRV generated by the platform. If you are in a high CRV rewards liquidity pool you will receive more CVX for your efforts.
CVX is also distributed to cvxCRV/CRV and CVX/ETH LPs that stake their LP tokens on the Convex platform through a Masterchef staking rewards contract.
How to store CVX token
You can store CVX token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search CVX Token.
Step 3: Click on the correct result, copy the wallet address and send CVX to this address.
Is CVX a good investment?
This article has provided some of the main ideas related to the CVX token and its implications. However, it is important to note that there are a few key points that investors should take into account before making investment decisions:
- As we have seen, Convex is a great platform for investors to earn passive income. Using convex will help users get a better reward instead of providing a large amount of liquidity on Curve.
- Although the project provides a good solution for investors to receive rewards for the long term. However, the project will be dependent on the Curve platform. To get a larger number of users, the platform can extend its operating model across other projects.
I hope you have gained all of the important information about CVX including its features and highlights throughout this topic.
If you have any questions about CVX or want to know more about CVX, please feel free to leave a comment below.