Categories
Derivatives

What is the CVX token is used for?

How Convex uses CVX token. Convex is a platform for tokenizing veCRV (locked voting CRV on Curve Finance) to not have to lock CRV.

CVX token is


The governance and yield farming token of Convex Finance.

CVX token is used for


  • Voting
  • Staking for platform fees

How could value accrue to the CVX token?


Locking tokens

  • Staking for fees

Fees

  • Fees for using Convex is distributed to stakers

What is Convex Finance?


Convex is a platform for tokenizing veCRV (locked voting CRV on Curve Finance) to earn yield and not having to lock tokens.

How Convex works


Convex is built on top of Curve Finance.

  • On Curve Finance holders of Curve tokens lock them in the DAO to receive veCRV.
  • veCRV can be used to boost their APY from providing liquidity on the pools.
  • veCRV is locked for 1 week – 4 years.

More on Curve boosting here.

On Convex users can deposit CRV and receive cvxCRV which is tokenized veCRV.

cvxCRV can be staked to receive

  • Platform fees(CRV)
  • CVX
  • veCRV rewards(3Crv).

CVX can be staked to earn

  • Portion of CRV earnings
  • Fees for cvxCRV

Fees

16% fee on CRV revenue by LP’s.

  • 10% – cvxCRV stakers – as CRV
  • 5% – CVX stakers – as cvxCRV
  • 1% – Harvest caller – as CRV

Tokenomics


Max supply: 100 000 0000

  • 50% Curve LP
  • 25% Liquidity mining
  • 9.7% Treasury
  • 1% veCRV holders
  • 1% veCRV holders
  • 3.3% Investors
  • 10% Convex Team

Docs


Similar projects


CVX token price


Crypto taxes

You really need to understand crypto taxes before you start trading. Koinly (affiliate) was the only service that solved our problem with crypto and DeFi tax. It's easy to use and you can try it for free.