What is Convex Finance – A Yield Optimizer for Curve Finance (CVX)

Convex Finance (CVX) is an innovative decentralized finance (DeFi) protocol developed on the stablecoin exchange platform, Curve Finance. Essentially, Convex enhances the benefits for Curve liquidity providers and CRV stakers by offering extra DeFi yields.

Essential information for their token is available on the MEXC Digital asset introduction page. Furthermore, we are listing (CVX/USDT – Trade it here) on the Innovation Zone! Check it out now!

How Does Convex Finance Work?

At its core, Convex Finance enhances Curve staking. Convex Finance allows CRV token holders and Curve liquidity providers to earn extra interest rewards and Curve trading fees. Liquidity providers can deposit their Curve LP tokens on Convex to gain trading fees along with boosted CRV and CVX token rewards. Users can also stake CRV tokens on Convex to earn trading fees from Curve, a share of Convex’s platform fees, and CVX token rewards.

Additionally, CRV stakers receive cvxCRV tokens, a liquid staking derivative, enabling them to profit from staking CRV without locking up their tokens. While Convex Finance mainly focuses on Curve, it also optimizes yield and rewards for platforms with locked native tokens, including offering similar services for Frax Finance.

Why is Convex Finance So Popular Recently?

Convex rewards Curve liquidity providers and CRV stakers with additional DeFi yields. This aggressive strategy to lock up as much Curve liquidity as possible has led to a DeFi competition with Yearn Finance. Therefore, both projects seek to acquire more CRV tokens to continually boost interest rates for Curve LPs.

Meanwhile, Curve Finance, with a total value locked (TVL) of $8.76 billion, stands as the largest decentralized exchange globally. Any DeFi protocol that captures this liquidity will inherently become significant, fueling the intense rivalry between Yearn and Convex.

Who is The Founder of Convex Finance?

Unfortunately, there is very little news regarding the founder of Convex Finance. Convex was created by an anonymous individual or group using the name C2tp. It is believed that the founder(s) have a background in software development, though this hasn’t been confirmed.

Furthermore, Convex was launched in May 2021 and was whitelisted on the Curve platform in April of the same year. The whitelisting came after a proposal that included requests for Convex to take part in Curve governance. With the large amount of CRV being deposited on Convex, the platform now controls a significant portion of tokens that influence Curve’s governance.

How Does veCRV Token Work in Curve Finance?

For starters, Curve is a decentralized exchange that primarily focuses on stablecoins. Since stablecoins are much less volatile than other cryptocurrencies, they help liquidity providers avoid impermanent losses. Curve becomes especially appealing to liquidity providers through its reward system. Curve tokens (CRV) are given as yield farming rewards and can be converted into veCRV (vote-escrowed CRV).

Meanwhile, VeCRV refers to CRV tokens that are locked for some time. It can be used in governance, boosting rewards, earning trading fees, and receiving airdrops. The more veCRV you hold, the more you can enhance your CRV rewards from your liquidity pool. Additionally, You can increase your CRV rewards up to 2.5 times by applying the maximum amount of veCRV for your deposited liquidity.

However, the more tokens you have in the pool, the more veCRV you need to achieve this maximum boost. Reaching the maximum reward requires a substantial amount of veCRV. For small liquidity providers, buying CRV, locking it into veCRV, and using it for boosting can be cumbersome. For large liquidity providers, the vast amount of veCRV needed to achieve the maximum boost can seem out of reach. Therefore, everyone using Convex pools their assets. This allows the platform to acquire more CRV. In return, they are converted into veCRV and then maximize the boost for all Curve LP token holders.

What is The CVX Token?

CVX is the native token of Convex Finance. It is a utility token that allows holders to receive a share of Convex platform fees. To earn these fees, you can stake your CVX to receive cvxCRV tokens. The more revenue Convex generates, the more value is distributed to cvxCRV holders. In the future, CVX tokens will also be used for governing Convex Finance.

Where to buy CVX Token

You can find CVX Tokens here at MEXC! We are listing CVX/USDT in our Innovation Zone! Furthermore, you can receive 100% spot trading fee discounts while holding MX tokens. Get yours now!

What is the Price of CVX Tokens?

The CVX Token is currently trading at MEXC with a live price of $2.94. You can check the live price of their token right here!

How to buy CVX Tokens on MEXC

You can buy CVX Tokens on MEXC by following the steps:

  1. Log in to your MEXC account. Click on [Spot].
  2. Search “CVX” using the search bar to see the available trading pairs. Take CVX/USDT as an example.
  3. Scroll down and go to the [Spot] box. Enter the amount of CVX you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy CVX] to confirm your order. You will find the purchased CVX in your Spot Wallet.

You can find a detailed guide on how to buy CVX Tokens here.

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Meanwhile, check out all of the listings in the Innovation and Assessment zones as well as the major tokens in the Main Zone – we have more amazing projects to come! Visit the Hot Trending section as well to uncover more featured popular tokens. Lastly, feel free to visit MEXC Academy to learn more about cryptocurrency!

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