Convex Finance
How Convex Finance works
Behind the simple deposit button sits a clever system that turns many small positions into one large, maximally boosted one.
1. Depositing liquidity
You first provide liquidity on Curve and receive LP tokens. You then deposit those LP tokens into the matching Convex pool. Convex stakes them in Curve's gauge using its own veCRV-boosted address.
- 01
Deposit
You deposit Curve LP tokens or CRV into Convex.
- 02
Boost
Convex uses its huge veCRV position to boost yields.
- 03
Earn
You receive boosted CRV, CVX and trading fees.
- 04
Claim
Withdraw any time — no 4-year lock required.
2. Earning boosted rewards
Because Convex owns a very large veCRV balance, its gauge positions receive a high boost. The CRV earned is passed back to depositors after a platform fee, which is distributed to cvxCRV stakers, vlCVX lockers and the treasury.
3. CVX rewards
For every CRV paid out, Convex mints a proportional amount of CVX. The amount of CVX per CRV decreases over time according to a fixed schedule until the maximum supply is reached.
4. Withdrawing
LP tokens can be withdrawn at any time. Unlike veCRV, there is no lock period for liquidity providers.
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