CVX is the native token of Convex Finance, enabling holders to participate in governance and earn a share of Curve Liquidity Providers' CRV rewards. Convex Finance is a decentralized finance (DeFi) platform built on Ethereum, streamlining yield optimization for Curve.fi liquidity providers by eliminating CRV lock-ups while offering boosted rewards. It also extends services to FRAX Finance LPs. This guide delves into CVX's functionalities, tokenomics, and how to acquire it.
Core Features of Convex Finance
Convex Finance enhances Curve.fi’s ecosystem through:
- Liquid Staking: Stake CRV without locking tokens, maintaining liquidity while earning boosted rewards.
- Zero-Fee Model: No deposit/withdrawal fees or charges on extra incentives (e.g., SNX).
- Cross-Protocol Boosting: Simplifies yield optimization for Frax Finance LPs via socialized boosting mechanics.
Utility of the CVX Token
- Governance: Vote-locked CVX directs Convex’s veCRV allocations to Curve.fi gauge weights.
- Revenue Sharing: Stake CVX to earn cvxCRV (tokenized veCRV) from Curve LP fees.
- Fee Accrual: Locked CVX earns additional fees from Curve.fi and Frax Finance LPs.
Tokenomics Overview
- Total Supply: 100 million CVX.
- Minting Mechanism: CVX is minted proportionally for CRV claimed by Curve LPs, with ratios reducing every 100k CVX.
Market Data:
- Circulating Supply: ~65.99 million CVX
- Market Cap: ~$520.9M (FDV: ~$799.4M)
CVX Distribution (Initial Whitepaper)
- Liquidity Mining: 50%
- Team/Advisors: 20%
- Treasury: 15%
- Ecosystem: 15%
How to Buy CVX
- Register on a supported exchange like MEXC.
- Navigate to Spot Trading and search for CVX/USDT.
- Execute Order: Choose Market/Limit orders and confirm purchase.
Price Performance
- All-Time High (ATH): $56.81 (Jan 2022)
- Lowest Post-ATH: $3.13 (Jun 2022)
Staking CVX
Participate in MX DeFi events on MEXC for flexible/fixed APY staking. Check availability here.
FAQs
1. What is Convex Finance’s primary purpose?
Convex optimizes yield for Curve.fi and Frax Finance LPs by simplifying CRV staking and boosting mechanisms.
2. How does CVX generate passive income?
Staking CVX earns cvxCRV (from Curve LP fees) and governance voting rights.
3. Where can I securely store CVX?
Use non-custodial wallets (e.g., MetaMask) or custodial options like MEXC’s Spot Wallet.
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Final Thoughts
Convex Finance bridges liquidity provision and yield optimization across DeFi protocols. Its tokenomics and fee-sharing model make CVX a compelling governance and staking asset. For traders, monitoring gauge votes and CRV/cvxCRV liquidity pools can unlock additional opportunities.
Disclaimer: This content is for informational purposes only. Always conduct independent research before investing.
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