Convex Finance
What is Convex Finance?
Convex Finance is a yield-boosting and governance aggregation layer for Curve Finance, launched on Ethereum in May 2021.
Definition
Convex is a set of smart contracts that accept Curve LP tokens and CRV, stake them on Curve on the user's behalf, and redistribute the boosted rewards. In return, the protocol mints its own token, CVX, as an extra reward.
The problem it solves
On Curve, maximising your rewards requires locking CRV for up to four years. Most liquidity providers either do not hold enough CRV or do not want to give up liquidity for so long. Convex removes that trade-off by sharing one collective boost.
A short history
Convex launched in May 2021 and within months accumulated the largest veCRV position in existence. It later extended the same model to other vote-escrow systems such as Frax (cvxFXS) and f(x) Protocol.
What Convex is used for
- Earning boosted yields on Curve pools.
- Converting CRV into liquid cvxCRV and staking it.
- Locking CVX to vote on Curve gauge weights.
- Earning vote incentives (bribes) from other protocols.
Related guides
6 min read
What is Curve Finance? The DEX behind Convex explained
Curve Finance explained: stablecoin swaps, liquidity pools, the CRV token, veCRV locking, gauges and boosting — and why Convex is built on top of it.
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5 min read
Convex vs Aura Finance: differences explained
Convex vs Aura: Curve vs Balancer, CVX vs AURA, cvxCRV vs auraBAL, vote locking and incentives — a clear comparison of the two boosters.
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The Curve Wars explained: why protocols fight for CRV votes
What are the Curve Wars? How gauge votes direct CRV emissions, why Convex became the kingmaker, how vote incentives work and what it means for users.
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