Convex Finance (CVX)

What is Convex? (CVX)

Summary of Convex

Convex optimizes yields and enables liquidity mining rewards for the Curve protocol. Convex Finance was officially launched in May 2021 by a pseudonymous person or group of people.
CVX can be staked on the Convex platform for a share of Curve LP’s CRV earnings and is used for voting on the protocol’s specific token allocations.

Convex is a yield optimizer for the Curve protocol that lets token holders earn boosted Curve (CRV) rewards. Curve is a decentralized exchange (DEX) liquidity pool on Ethereum specifically designed for swapping stablecoins.

Dubbed a “DeFi 2.0 protocol”, Convex is part of a subset of second-generation decentralized finance (DeFi) protocols that provide yield farming services. Holders of Curve’s native token (CRV) and Curve liquidity providers (LPs) are able to stake their tokens via Convex.

Staking through Convex allows users to earn Convex’s native CVX token as well as a share of boosted CRV as rewards.CVX can be staked on the Convex platform for a share of Curve LP’s CRV earnings. Additionally, CVX is used for voting on the allocation of tokens on the Convex platform. Participants must lock their CVX tokens on the platform for a minimum period of time before they can participate in the protocol’s governance process.

Who created Convex?

Like Bitcoin (BTC), whose pseudonymous founder Satoshi Nakamoto remains unknown, Convex was created by an unknown person or group of people going by the name C2tp. It is assumed the founder(s) came from a software development background, though this is yet to be officially verified.

Convex launched in May 2021 and was whitelisted on the Curve platform in April that same year. Whitelisting followed a proposal that included requests to allow Convex to participate in Curve governance. Due to the sheer amount of CRV being deposited on Convex, Convex now custodies a significant portion of the tokens that allow holders to have a say in Curve’s governance.

Convex has a maximum supply of 100 million CVX tokens with 50% allocated toward rewarding Curve liquidity providers. A further 25% is to be distributed over four years for liquidity mining purposes and 9.7% of the tokens are held in the treasury.

Who created Convex?

Like Bitcoin (BTC), whose pseudonymous founder Satoshi Nakamoto remains unknown, Convex was created by an unknown person or group of people going by the name C2tp. It is assumed the founder(s) came from a software development background, though this is yet to be officially verified.

Convex launched in May 2021 and was whitelisted on the Curve platform in April that same year. Whitelisting followed a proposal that included requests to allow Convex to participate in Curve governance. Due to the sheer amount of CRV being deposited on Convex, Convex now custodies a significant portion of the tokens that allow holders to have a say in Curve’s governance.

Convex has a maximum supply of 100 million CVX tokens with 50% allocated toward rewarding Curve liquidity providers. A further 25% is to be distributed over four years for liquidity mining purposes and 9.7% of the tokens are held in the treasury.