Convex

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Convex is a yield optimizer built on Curve Finance. It was founded by anonymous developer C2tP. It is currently the third largest protocol on Ethereum with total value locked exceeding $10b[1].

Overview[2]

Convex allows Curve liquidity providers to earn trading fees and claim boosted CRV without locking CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort. If you would like to stake CRV, Convex lets users receive trading fees as well as a share of boosted CRV received by liquidity providers. This allows for a better balance between liquidity providers and CRV stakers as well as better capital efficiency. Convex has no withdrawal fees and minimal performance fees which is used to pay for gas and distributed to CVX stakers. CRV stakers and liquidity providers also receive liquidity mining rewards in the form of CVX.

Convex for CRV Stakers[3]

Convex rewards CRV stakers with a share of the boosted CRV on the Convex platform making it an ideal destination for those who wish to stake CRV whilst remaining liquid

Convex for Liquidity Providers[4]

Convex allows liquidity providers to earn trading fees and claim boosted CRV without locking CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort

Tokenomics[5]

cvxCRV[6]

cvxCRV is tokenized veCRV

  • If a user deposits CRV into Convex, that CRV is locked forever on the platform as veCRV.
  • A tokenized version of veCRV, cvxCRV, is returned to the user at a 1:1 rate.

cvxCRV Staking

  • cvxCRV can be staked into the platform to receive normal Curve admin fees one would get for staking their veCRV on Curve.fi, as 3CRV.
  • Additionally, users staking cvxCRV will receive CRV from Convex's performance fee, as well as the platform native token CVX.

cvxCRV Liquidity Pools

  • Rather than staking cvxCRV, users can also choose to contribute to the Sushiswap liquidity pool cvxCRV/CRV.
  • Users can then stake the SUSHI LP token on Convex Finance to receive a separate pool of CVX rewards for providing liquidity to others to enter and exit convex CRV ecosystem via the cvxCRV token.

CVX[7]

  • Stake to receive a share of platform fees as cvxCRV.
  • In the future, CVX will be used for voting, such as gauge weights.
  • CVX is minted pro-rata for each CRV token claimed by Curve LP's on Convex.
    • CVX / CRV mint ratio reduces every 100k CVX
    • CVX Mint formula/code here

Distribution

  • 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

Sources