Convex Finance is a decentralized finance (DeFi) platform that provides staking rewards on the Curve Finance exchange. The protocol operates on the Ethereum blockchain and acts as a yield optimizer for CRV token holders and Curve liquidity providers.^[1]

History

Convex Finance was first introduced in April 2021 by a group of anonymous developers with the aim of boosting rewards for CRV holders and liquidity providers using a simple and easy-to-navigate interface. The project’s native token, CVX, was introduced and subsequently launched for airdrops, incentives, and rewards on the Convex Finance platform. The platform went live in May 2021 and recorded $68 million in total value locked (TVL) in that first month. It reached its peak of $21 billion in January 2022. Convex Finance later announced that it had distributed a total of $872.8 million in fees and rewards to its users in May 2022.^[2]
Overview
CVX Token
CVX token is the native cryptocurrency fueling Convex’s ecosystem. These tokens are minted pro rata for each CRV token claimed on the Convex platform by Curve’s liquidity providers. In addition, holders are offered a share of Convex platform fees with these tokens.^[2]

Convex Finance has a maximum supply of 100 million CVX coins with a market capitalization of $409 million. CVX/CRV mint ratio reduces every 100,000 CVX.

Convex Finance has a maximum supply of 100 million CVX coins with a market capitalization of $409 million. CVX/CRV mint ratio reduces every 100,000 CVX.

CVX tokens can be staked on Convex Finance to earn cvxCRV. This provides a share of Curve’s LP CRV earnings in addition to a portion of the fees as well. More value will be distributed to cvxCRV holders as the Convex platform continues its growth. In the future, CVX will be used for voting.