Convex Finance

Convex Finance is an Ethereum-based yield protocol built on Curve Finance. To benefit from boosted rewards, liquidity providers on Curve would normally have to lock CRV for a long period to obtain veCRV; Convex takes on this process collectively on users' behalf. CVX is the protocol token issued on Ethereum.

By depositing Curve liquidity tokens into Convex, users can receive boosted CRV rewards without holding veCRV of their own. CRV holders, meanwhile, can deposit their tokens into Convex irreversibly, receive cvxCRV in return and earn a share of the protocol's income. The core function of CVX is voting power: CVX locked for a set period, known as vlCVX, determines how the veCRV accumulated by Convex is used in votes on reward distribution to Curve pools. This structure has given rise to a market in which protocols offer incentives to gather votes.

The main factors that may affect the CVX price are the trend in liquidity and rewards in the Curve ecosystem, the value of CRV, demand for vote incentives and the risks arising from interconnected smart contracts. The Convex price on Lzzo.com is based on the CVX/USDT pair on Binance; the USDT value is converted into dollars at the Coinbase Exchange rate, and the chart follows the same series.