Cover Image for Convex Finance

Convex Finance

💡 Convex is a yield optimisation platform build on top of Curve Finance. Convex helps users attain better yield on their Curve LP positions with minimum management requirements whilst remaining liquid







Yield Aggregator

Yield Bearing



Token Strength.

Token Utility:

Passive income: Users can earn passive income by staking their $CVX tokens and receiving a portion of the trading fees generated on the platform.
Liquidity mining: $CVX holders can participate in liquidity mining programs and earn additional tokens as a reward for providing liquidity.
Governance: $CVX holders have voting rights and can participate in the decision-making process for the development and direction of the platform.

Increased liquidity: Users can lock their CRV tokens to mint $cvxCRV, which can then be traded on decentralized exchanges, increasing the liquidity of the token.
Leverage: By minting $cvxCRV, users can gain leveraged exposure to CRV without having to buy

Demand Driver:

Underlying $CRV demand
$CVX demand is closely tied to $CRV demand, as $CVX holders receive boosted rewards for staking $CRV on Convex. Thus, the stronger the demand for $CRV, the higher the demand for $CVX.

Protocol bribes
Convex offers yield-boosting protocol bribes to $CVX holders, providing an additional incentive to hold the token. As long as these bribes remain attractive and competitive, they should continue to drive demand for $CVX.

Value Creation:

Convex Finance simplifies yield farming on Curve Finance by automating yield optimization and providing a user-friendly interface. Users can maximize returns on LP positions with minimal management while maintaining liquidity. Convex's popularity lies in its ability to generate high yields with low risk, making it attractive for novice and experienced investors. It's an essential platform for optimizing returns in decentralized finance.

Value Capture:

Value accrual to token: 
$CVX captures value through its use in governance (veCRV) and yield optimization services (cvxCRV). Users must lock CVX to obtain vlCVX and receive bribes, creating demand for the token. CVX holders also receive yield from staking.

Value accrual to protocol: 
Convex Finance takes a 17% fee from its yield optimization service, which is paid to stakers. There is no treasury allocation for these fees, they simply go to CVX and derivatives stakers.

Business Model:

Revenue comes from: 
17% fee cut from yield optimization solutions for Curve and Frax, paid in whatever the liquidity positions are denominated in.

Revenue is denominated in: 
whatever the liquidity positions are denominated in.

Revenue goes to: 
CVX and derivatives stakers, who receive all fees, and CVX holders, who receive bribes in the form of assets to direct liquidity towards certain pools. No revenue goes to the treasury.


Protocol Analysis.

Problems & Solutions
Investors in Curve Finance struggle to maximize their yield due to the complex management requirements and low deposit rates.

Convex Finance protocol offers an easy-to-use yield optimization platform that automates management tasks and constantly increases deposit rates. This allows investors to achieve better yields on their Curve LP positions with minimum effort, making their investments more profitable and liquid.
Yearn Finance: A decentralized finance (DeFi) protocol that provides yield optimization and aggregation services for cryptocurrency investors.
Aura Finance: A DeFi platform that offers yield farming and staking services to users, with a focus on minimizing risk and maximizing returns.

Investment Take

... coming soon

Tokenomics Timeline.

  1. 2021-05-15

    Convex Launch

    Convex launched with 100M max supply

  2. 2021-12-15


    Convex starts to accumulate veFXS and expands to Frax ecosystem

  3. 2022-05-04

    vlCVX contract re-deployed

    Due to a potential security risk, the vlCVX contract was redeployed




Ecosystem Users.