**Convex Finance** is a DeFi protocol designed to help Curve liquidity providers earn trading fees from Curve without directly staking their liquidity there. Instead, users can stake their assets with Convex to receive boosted CRV rewards and additional liquidity mining incentives. This improves capital efficiency for CRV stakers and solidifies Convex Finance's role in the broader Curve ecosystem. The protocol is part of a competitive effort to gain influence over Curve Finance, a leading stablecoin exchange. Since Curve operates as one of the largest decentralized exchanges by total value locked (TVL), holding more CRV tokens allows protocols to shape interest rates within the platform. This dynamic has led to what is often referred to as the "Curve wars," a competition among DeFi protocols for greater control over Curve's operations. Convex Finance was developed by a team of anonymous developers. Unlike many low-quality tokens, Convex Finance is recognized as a significant and influential protocol in decentralized finance. (Note: Removed speculative language about risk and investment, as well as external links, while maintaining the factual description of the project.) **Convex Finance's Role in the Curve Ecosystem** Convex Finance is designed to maximize its influence within the Curve ecosystem by accumulating significant total value locked (TVL). Its primary focus is on CRV holders and Curve liquidity providers, offering them enhanced rewards through two key mechanisms: 1. **CRV Holders** – By staking CRV, users receive **cvxCRV**, which unlocks additional benefits. 2. **Curve LPs** – Liquidity providers who stake their LP tokens with Convex receive boosted rewards. ### How Convex Enhances Curve Rewards Curve Finance distributes **veCRV** (vote-escrowed CRV) to users who lock their CRV tokens. These veCRV tokens provide increased voting power and rewards, proportional to the lock-up duration. While maximum rewards can reach up to **2.5X** the base rate, achieving this boost becomes more challenging as liquidity grows. Convex Finance addresses this by pooling liquidity from multiple stakers, allowing even smaller participants to benefit from higher rewards that would otherwise be out of reach. Users who stake with Convex receive: * Base interest on their deposited liquidity * A portion of Curve’s trading fees * Additional boosted rewards from Convex * CVX tokens Additionally, staking CRV to receive **cvxCRV** grants: * veCRV rewards * A share of Convex’s trading fees * CVX token distributions * Eligibility for potential airdrops to veCRV holders By consolidating liquidity, Convex Finance helps optimize rewards for participants in the Curve ecosystem. CVX has a total supply of 100 million tokens, distributed as follows: - **50% Curve LP rewards** – Allocated pro-rata for CRV received on Convex. - **25% Liquidity mining** – Distributed over four years through incentive programs. - **9.7% Treasury** – Vested over one year for future incentives and community-driven initiatives. - **1% veCRV holders** – Instantly claimable airdrop. - **1% veCRV holders who vote to whitelist Convex** – Instantly claimable airdrop. - **3.3% Investors** – Vested over one year, with investment funds used to pre-seed boost and locked permanently (no cvxCRV minted). - **10% Convex Team** – Vested over one year. cvxCRV tokens are minted at a 1:1 ratio for each CRV staked. CVX tokens enable participation in governance proposals within the Convex Finance protocol. Convex underwent a security audit by MixBytes, and the audit results are publicly available. The project's treasury is secured by a 3-of-5 multisig system involving the following parties: - **C2tP** – Convex Finance - **Winthorpe** – Convex Finance - **Charlie** – Curve Finance - **Tommy** – Votium - **Sam** – Frax Finance A bug in one of Convex's smart contracts required the team to redeploy the vote-locking contract, which impacted the CVX token's price at the time. *(Note: Links to external reports and definitions have been removed to maintain an evergreen format.)* CVX is available on Binance, OKX, Bitget, Mandala Exchange, and Hotcoin Global. *(Note: Links to exchanges have been removed to maintain an evergreen format.)* Explore **Solidly Exchange (SOLID)** — a B2B stablecoin exchange. Discover **Redacted Cartel (BTRFLY)** — a DAO that provides rewards for CRV LP token holders. For insights on charitable contributions in crypto, read our **Guide to Crypto Donations**. Stay informed with the latest updates and trading insights on **DroomDroom**.