About Convex Finance (CVX)
Convex Finance is a decentralized finance (DeFi) protocol built to enhance rewards for holders of staked Curve Finance tokens (CRV). The platform was launched in May 2021 and reportedly acquired over $1 billion in the two weeks following its inception.
Convex Finance was designed to fill the gap for CRV token holders who did not meet the criteria required to enjoy the 2.5x rewards boost offered to tiered investors in exchange for liquidity locked on the Curve.fi platform. Holders of staked tokens on the platform receive Vote-Escrowed CRV (veCRV) tokens, which are governance tokens needed to vote on proposed developments to the network.
CRV holders must lock and stake their tokens to receive veCRV tokens that allow them to participate in the governance system. CRV can be locked for this purpose for up to four years, and CRV holders receive veCRV on a 1:1 basis for each CRV they stake.
Convex Finance enhances this rewards system by making the rewards available to all holders of staked CRV. Those who would otherwise not hold enough staked CRV are able to receive the Curve Finance rewards boost by investing in liquidity pools available on the Convex Finance platform.
Convex Finance users benefit not only from staking CRV but also other digital assets that can be integrated into the ERC-20 Curve.fi platform. Convex Financeâs native token, CVX, is involved in all operations on its network. CVX price is updated and available in real time on Binance.