Most people think the vote-escrow model is simple, but this is where it’s easy to get things wrong:
Convex lets users deposit CRV in exchange for cvxCRV. These CRV are permanently locked as veCRV, and this process cannot be reversed to redeem them.
The cost of locking is sacrificing liquidity: if the token price falls during the lockup period, you still can’t sell; you have to wait until the lockup expires to get your tokens back.
Before locking, make sure you won’t need these tokens during the lockup period. veCRV cannot be unlocked early before it expires.
$CRV veCRV obtained through locking is one of the most representative examples of the veToken model.
Convex lets users deposit CRV in exchange for cvxCRV. These CRV are permanently locked as veCRV, and this process cannot be reversed to redeem them.
The cost of locking is sacrificing liquidity: if the token price falls during the lockup period, you still can’t sell; you have to wait until the lockup expires to get your tokens back.
Before locking, make sure you won’t need these tokens during the lockup period. veCRV cannot be unlocked early before it expires.
$CRV veCRV obtained through locking is one of the most representative examples of the veToken model.