Convex Finance is a DeFi protocol created by an anonymous development team. It’s built on top of Curve Finance and designed to help Curve.fi (CRV) liquidity providers and CRV stakers capture enhanced reward opportunities.

What are Convex Finance’s key features and how does it work?

Convex Finance runs atop the Curve Finance stack, and the two protocols are closely connected. Curve Finance distributes rewards to its liquidity providers in the form of CRV (its governance token) along with platform trading fees. CRV can be staked for a chosen duration, up to a maximum of 4 years, which yields veCRV (vote-escrowed CRV). In general, longer staking periods translate into greater veCRV reward amounts.

Several tokens are involved in the system. The first is Convex Token (CVX), the native token of the Convex Finance platform. Users may stake CVX and earn a share of the platform’s generated fees as cvxCRV; this mechanism is intended to keep CRV within the system, though cvxCRV can be exchanged for CRV using the platform’s cvxCRV/CRV liquidity pool.

CVX is also used to participate in governance decisions. Among other uses, CVX holders vote on how Convex Finance directs gauge weight votes. CVX supply is minted based on the amount of CRV claimed by Curve liquidity providers through Convex. The CVX-CRV mint ratio decreases for every 100,000 CVX produced.

The second token is cvxCRV (Tokenized veCRV). It’s used for tokenized deposits, where cvxCRV is minted 1:1 for each CRV a user locks on the Convex platform. Once minted, cvxCRV can be staked within the platform. Rewards are distributed in CRV, CVX, and veCRV derived from trading fees and other incentive sources. 

Users can also supply cvxCRV to SushiSwap’s cvxCRV/CRV liquidity pool. Participants can then stake the resulting SUSHI LP token on Convex Finance and receive rewards in the form of CVX. This is meant to encourage users to join the CRV ecosystem through SushiSwap by holding cvxCRV.

Convex Finance as a service focuses on two main groups: CRV Stakers and Liquidity Providers.

For CRV Stakers, Confex provides rewards backed by a portion of boosted CRV on the Confex platform. They may be entitled to:

For Liquidity Providers on Curve, Confex Finance provides a different reward structure. The idea is to let LPs earn without locking CRV themselves. They may receive boosted CRV incentives driven by users who lock CRV on Convex, along with:

Where can you buy CVX?

CVX can be purchased on the CEXs and DEXs listed under the market tab here. Notable platforms include SushiSwap, Binance, and ZB.com. CVX pricing will vary by exchange listing and overall market demand. 

To see complete, current details on CVX price-including historical price charts-check the price data on this page.