Convex Finance (CVX)
How Convex works
Convex operates by enabling Curve liquidity providers to deposit their liquidity provider (LP) tokens into the Convex protocol. This action allows users to earn boosted CRV rewards and liquidity mining incentives more efficiently than if they were to lock CRV themselves. The protocol aggregates the staked CRV, thereby enhancing the boosting power and distributing the benefits among its users.
| Ticker | CVX |
| Category | Decentralized Finance (DeFi) |
| Website | https://www.convexfinance.com/ |
| @convexfinance | |
| Telegram | convexEthChat |
| Contract Addresses | |
|---|---|
| ethereum | 0x4e...b2 |
Boosted CRV and liquidity mining rewards
One of the core features of Convex is its ability to offer boosted CRV rewards to liquidity providers. By utilizing the aggregated CRV staking model, Convex ensures that users receive a greater share of the boosted CRV rewards. Additionally, liquidity providers can also earn liquidity mining incentives, further enhancing the potential yield from their LP tokens.
Benefits for CRV stakers
Convex provides significant advantages to CRV stakers. By staking CRV within the Convex platform, users can earn trading fees as well as a portion of the boosted CRV generated by the liquidity providers. This system creates a more balanced environment between liquidity providers and CRV stakers, promoting better capital efficiency across the ecosystem.
Additional rewards
Apart from the boosted CRV, Convex offers additional CVX token rewards to those participating in the protocol. These tokens are distributed to users who stake their CRV, contributing to the overall growth and participation within the Convex ecosystem.
Capital efficiency and balance
Convex's design focuses on optimizing capital efficiency and maintaining a balanced distribution of rewards between different participants. By allowing both liquidity providers and CRV stakers to benefit from boosted CRV and other incentives, Convex fosters a symbiotic relationship that enhances the overall performance and stability of the Curve ecosystem.