What is Convex Finance?

Convex Finance (CVX) is a DeFi platform built on Curve Finance that optimizes yield farming by enhancing liquidity provider (LP) rewards and CRV staking incentives.

Launched in 2021, Convex allows Curve liquidity providers to maximize their earnings without locking CRV tokens for long periods. Convex Finance's native token, CVX, is used for staking, governance, and boosting rewards within the ecosystem.

How is Convex Finance useful?

Convex Finance simplifies yield optimization for Curve Finance users, allowing liquidity providers and CRV stakers to earn higher rewards with minimal effort. Instead of manually locking CRV tokens for veCRV benefits, users can stake their CRV with Convex and receive boosted Curve rewards and additional CVX incentives.

The platform benefits DeFi yield farmers, passive income seekers, and governance participants, making Curve’s liquidity incentives more accessible. The CVX token grants governance rights and allows holders to participate in Convex’s reward distribution model.

How does Convex Finance work?

Convex Finance operates by pooling Curve liquidity provider (LP) tokens and CRV tokens, optimizing yield distribution for participants. When users stake CRV through Convex, they receive cvxCRV, which retains veCRV benefits while remaining liquid.

Liquidity providers on Curve who stake via Convex earn enhanced CRV rewards, boosted by Convex’s large veCRV holdings. The CVX token is used for governance, staking, and rewarding users who contribute to Convex’s liquidity pools.

Convex Finance milestones

• Boosted CRV Rewards: Increased yield opportunities for Curve liquidity providers.

• cvxCRV Model: Introduced a liquid staking alternative to veCRV, allowing flexibility while retaining rewards.

• Governance Growth: Empowered CVX holders with voting rights over protocol upgrades.

• Expansion of DeFi Integrations: Partnered with various DeFi protocols to expand staking and yield strategies.

• Liquidity and TVL Milestones: Became one of the leading DeFi protocols by total value locked (TVL) within the Curve ecosystem.

Convex Finance continues to optimize yield farming, offering a user-friendly and efficient way for DeFi participants to maximize their earnings from Curve Finance.

Buy Convex Finance (CVX) on BITmarkets.