Convex CRV (CVXCRV) is the tokenized form of veCRV. CRV token holders can visit Convex Finance, store their CRV (turning it into veCRV), and receive CVXRV in return.
Those who deposit their standard CRV tokens to Convex Finance are rewarded as being liquidity providers. This reward comes in the form of a special token – the CVXCRV.
CVXRV holders receive special rewards and voting privileges on the Finance website. These rewards can sometimes come in the form of Convex platform fees. Half of the money obtained from fees gets distributed to CVXRV holders.
Convex Finance (CRV) is based on Curve Finance, a stablecoin exchange site.
How Convex CRV (CVXCRV) Works
Convex CRV (CVXCRV) is the tokenized version of CRV, which is an Ethereum token. You can gain CRV LP tokens on a crypto trading platform.
Once you have attained CRV tokens, you can deposit them into Convex Finance – a platform designed for users to carry out boosted CRV staking. Here, you can stake either CRV tokens or Curve LP tokens.
If you deposit CRV tokens into Convex Finance, these tokens become time-locked. When they are locked into Convex Finance, they become known as veCRV or ‘vote-escrowed CRV’. The longer you lock your original CRV tokens away, the more voting power you gain over the website.
As the veCRV is time-locked, the user is returned a tokenized version of the original coin, which is known as cvxCRV. These cvxCRV tokens are individually returned to the investor at a 1:1 rate.
Why would you want to do all of this? Well, the more veCRV you have locked into Convex Finance, the more trading fees, voting rights, boosting rewards, governance, and airdrop entries you receive on Convex. The more cvxCRV tokens you attain, the more rewards and governance you get back.
By earning trading fees, we don’t mean that you receive more fees for depositing CRV to Convex finance. Rather, when you deposit CRV to this website, you receive some of the money CRV has earned from fees. Therefore, the more people who use the site, the more money you can get back in fees. CRV rewards can be boosted to a maximum of 2.5x.
What Convex CRV (CVXCRV) is Used for (Use Cases)
Compared to other platforms and token types, Convex Finance is very limited – which isn’t exactly a bad thing. The primary function of CRV Finance is to allow for boosted Curve staking. If you own Convex’s native token, CRV, you can gain interest rewards on Convex Finance.
Although we’ve already mentioned nearly all the use cases of Convex CRV (CVXCRV), here’s a closer look at what you can do with this token:
Convex CRV earnings
Convex CRV rewards users who stake their CRV tokens on the site with some of the platform’s earnings. Users can gain extra finance in the form of CRV fees.
Since September 2020, CVXCRV holds have gained 50% of all trading fees. This is effectively a reward for providing liquidity to the CVX platform. As of 2022, this 50% equates to around $15M per year.
Voting power
As soon as you lock in your standard CRV tokens into the Finance section of the platform, you gain CRV voting power. Typically, CRXCRV holders vote on pool parameters and DAO (decentralized autonomous organizations) proposals. DAO votes can enact actual change while signaling votes only suggest a change.
Anyone who holds CRXCRV can create a proposal. This proposal signals to other users an idea for a change in the Convex platform, which could lead to widespread voting in favor of the proposal.
Airdrop access
Those who hold boosted CRV can gain access to CRV’s exclusive airdrops.
Where to Buy Convex CRV (CVXCRV)
As we’ve already stated, you can convert Curve LP tokens into CVXCRV via the Curve Finance platform. If you deposit cryptocurrency into one of Curve’s pools, you will receive Curve LP tokens. There are several pools you can deposit into, including plain pools, metapools, and lending pools. Once you attain the Curve LP tokens, you can trade them for CVXCRV.
Alternatively, you can buy Convex CRV (CVXCRV) on a decentralized exchange platform. A decentralized exchange platform relates to any crypto exchange site that runs on autonomous code and is not directly controlled by a centralized body.
The best places to buy Convex CRV include the following decentralized trading sites:
However, it is also possible to find a good Convex CRV price on such sites as Coinbase and Binance.
FAQs About Convex CRV (CVXCRV) Metaverse
How long has Convex CRV (CVXCRV) existed?
The Convex platform (CVXCRV) has existed since May 2021, making it only a recent addition to the crypto game.
Curve has existed for slightly longer. The Russian founder, Michael Egorov, issued the white paper for Curve in November 2019. Curve was officially launched a year later in 2020. Egorov is a scientist with a background in cryptocurrency and blockchain.
What’s controversial about Convex CRV (CVXCRV)?
Given that Convex CRV is a fairly recent addition to the crypto exchange game, it hasn’t experienced any major problems or suffered from controversies during its short time online. There are, however, a lot of doubters who question it.
Controversies include:
- cvxCRV price sometimes falls below CRV – Although they are technically meant to be linked in value, cvxCRV sometimes falls below CRV. This happened at the end of 2021 and continued into the start of 2022, so cvxCRV hadn’t existed for that long when this problem started to emerge.
- The risk of dilution – Only around half of the total supply of CRV is currently in circulation. This means that the currency is at risk of being diluted as the rest of the funds start flowing into circulation. However, this problem will hopefully be avoided by an increase in veCRV lockups.
How many Convex CRV (CVXCRV) tokens are there?
There is a total of 284 million Convex CRV (CVXCRV) tokens, half of which is kept by Convex. Gradually, the other half of the supply will be released into circulation. It is assumed that more will be issued when a certain threshold of veCRV tokens are locked in.
Can Convex CRV (CVXCRV) be Mined?
You can mine for Convex CRV in the sense that you can gain rewards for being part of the liquidity providers that keep the site going.
What is the Market Cap of Convex CRV (CVXCRV)
The market cap of Convex CRV (CVXCRV) is set to $27,451,182.99.
CVXCRV is currently worth $0.853169.
Biggest Competitors of Convex CRV (CVXCRV)
The Convex platform isn’t the only decentralized finance platform that is based on Curve Finance’s stablecoin pools. There are others, which can be classed as Convex CRV’s main rivals. All platforms that are based on Curve Finance’s stablecoin pools are effectively competing against each other in order to attain the most Curve tokens.
One of the biggest competitors of the Convex platform is Yearn Finance. Yearn Finance is built on the Ethereum blockchain and works similarly to Convex, in that it offers its customers a chance to earn rewards by becoming CRV stakers. The lending and trading services work pretty much the same as Convex CRV.
The two decentralized finance platforms are two of the biggest platforms that are based on Curve Finance, and both became involved in what was known as the ‘Curve Wars’.
Other rival platforms include the likes of StakeDAO, Cream, Mirror, Parallel, and Hot Swap.
What Are the Future Plans of Convex CRV (CVXCRV)
Convex hopes to strengthen its user base over time and encourage more people to store their CRV in Finance. They will likely do this by offering more rewards for providing liquidity since customers are needed to keep the site functioning.
A steady number of users is needed to validate the site, and also allow for the remaining CVXCRV tokens to be released without causing a dilution.
Convex CRV hopes to introduce more voting powers to CVXCRV holders in the future, with the long-term goal of giving liquidity providers as much control over the future of CRV as possible.
Pros/Cons of Convex CRV (CVXCRV)
The pros and cons of Convex for users staking CVXCRV include the following:
Pros
- It’s one of the biggest platforms that is based on Curve Finance.
- Its limited features make it easy to use.
- It offers plenty of rewards to those who stake CRV on the platform.
Cons
- The platform may suffer from dilution. However, this can be avoided if enough users stake CRV.
- The CRV platform is limited in terms of features.
- Sometimes cvxCRV is valued less than standard CRV.
https://www.coinmarketsolution.com/mine-convex-crv
https://cryptobriefing.com/yearn-and-convex-are-competing-curve-tokens/
https://docs.convexfinance.com/convexfinance/general-information/why-convex/understanding-cvxcrv
https://www.convexfinance.com/
https://kraken.pxf.io/B0Rny4en-gb/learn/what-is-curve-crv
https://www.coingecko.com/en/coins/convex-crv
https://sourceforge.net/software/product/Convex/alternatives
https://www.reddit.com/r/defi/comments/rvrpzb/downsides_of_convex_curve/
https://morioh.com/p/1daf4195e0df
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