Convex Finance is a platform that allows liquidity providers and stakers on the Curve Finance network to earn an increased amount of rewards without having to place their CRV tokens under lock. The platform does this at no extra charge or withdrawal fees apart from the minimal amount of performance fees.
The system generally provides its service by offering two key models by which people can generate increased rewards and these are by either staking or directly providing liquidity. The liquidity provision allows users to deposit Curve’s dedicated tokens into the Convex network. In turn, these liquidity providers are then paid on the Curve network with increased CRV incentives due to the other users also having their CRB tokens under lock within the Convex protocol. The boost earned as a reward is pooled from the other CRV holder with stakes in the system. In essence, the platform can increase rewards through the large number of people that use it.
If a user were to execute this procedure themselves, they would first be required to purchase Curve tokens, then after, they would need to stake those tokens to earn LP tokens on the curve network before they can be eligible for the high yields provided. Convex on the other hand can execute this process in an optimized manner by carrying it out in mass while generating CRV tokens at a faster pace because there are more people making use of it on the network. Since the Curve tokens were not manually locked, the Convex platform provides an avenue for users to make withdrawals at any time.
Who are the Founders of Convex Finance (CVX)?
In a similar procedure to Bitcoin, the individuals behind the development of the Convex Finance platform have chosen to remain anonymous. According to information on its website, the founding team is made up of well-read and experienced software developers who were looking to solve a series of major problems facing the world of blockchain technology. So far, it’s safe to say the platform has been able to achieve its goal and the developers might unmask themselves at a date in the future.
What is Convex Finance (CVX) used for?
In general, Defi systems allow holders of cryptocurrency assets to earn passive income via their provision of liquidity to a decentralized automated market maker. An example of this is the Curve Finance platform, which is essentially a decentralized exchange that incorporates a specific collection of AMM protocols into its ecosystem in order to allow for the exchange of digital assets through a permissionless process. It provides a system where anyone can add their native CRV token to a variety of liquidity pools and then earn fees by locking up their digital assets.
The provision of liquidity to the Curve Finance pool creates a system that allows users to minimize the risks of permanent loss due to the pools being made up of assets with almost equal values, such as stable coins. Regardless of the system’s benefits, the Curve platform is somewhat confusing and can be intimidating to newbies to the Defi world. The development of the Convex Finance platform is specifically to mitigate this problem and provide an easy-to-use environment. The Convex system makes it so that the process of providing liquidity on Curve is easier and also helps the users earn rewards.
What Is the Unique Point of Convex Finance (CVX)?
The Convex Finance platform is unlike most of the cryptocurrency-based solutions available in the world. The system offers its users a major advantage of having a secondary source of income with the tokens they already own from the Curve network. This provision is executed by the protocols on the system that allows users to earn from staking.
While liquidity provision is the most used earning avenue available on the platform, the Convex Finance system also provides a system where people can earn a share of the rewards provided from taking CRV tokens. If users were ordinarily expected to stake their tokens themselves on the Curve ecosystem, they would be able to earn veCRV, which in turn provides them with a portion of the trading fees paid on the platform. As an alternative, the users can stake CRV tokens on the Convex Finance network to earn cvxCRV tokens. The cvxCRV tokens earned offer the network users a collection of benefits which include airdrops to holders of the veCRV token and other rewards from Curve. However, the cvxCRV tokens also provide additional rewards to users in the form of CVX tokens and a portion of earnings from the Convex Finance platform.
How many Convex Finance (CVX) coins are in circulation?
CVX is the dedicated token of the Convex Finance network. Upon its release, there was a total of 100,000,000 CVX coins minted. Of that amount, the present amount in circulation is pegged at 32,730,934 CVX.
The supply of CVX tokens was apportioned to different parts of its ecosystem. 50% was assigned to Curve LP rewards: Rewarded pro-rata for CRV received on Convex, Liquidity mining: Distributed over 4 years. (Incentive programs, currently CVX/ETH and cvxCRV/CRV) was assigned a total of 25%. 10% of the token supply was assigned to the Convex Finance team over a vesting period of one year. The platform’s treasury front also got assigned 9.7% over a one-year vesting period. The rest of the assignments were made for Instantly claimable airdrops, holders who vote to whitelist Convex: Instantly flammable airdrops, and the Investors Vested over 1 year: 100% of investment funds used to pre-seed boost and locked forever(no cvxCRV minted).
Is the Convex Finance (CVX) Network secured?
The Convex Finance platform was created under the ERC-20 specification. As such, the system is jointly protected with the same mechanism as the Ethereum blockchain.
The system is guarded by a dedicated proof of stake consensus algorithm where participants on the network act as nodes to validate several transactions being executed. This prevents any form of attack against the network as it is the stakes of the nodes that would be in danger.
How do I buy Convex Finance (CVX)?
Convex Finance, while equipping its users with a group of revenue-generating avenues, the platform also gives users to enjoy these benefits outside its ecosystem. This and all the other advantages packed in the Convex Finance platform have led it to become one of the most mainstream platforms in the industry. Now, CVX tokens are largely available across several exchanges and can be easily purchased by the following.
- Deposit an amount of fiat currency into a supported crypto exchange
- After waiting for the transaction to be approved, you can now buy your CVX tokens.
Which Cryptocurrency Wallet Supports Convex Finance (CVX)?
The PTPWallet platform supports many cryptocurrencies simultaneously such as Convex Finance (CVX). Because of its vast use case, it has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their CVX wallet because it offers a simple and interactive interface making it easy for people to navigate its system.