Convex Finance (CVX) is a decentralized finance (DeFi) protocol designed to maximize rewards for Curve liquidity providers. It allows users to earn trading fees and claim Curve native tokens (CRV) without locking CRV themselves. CVX serves as a governance token, rewarding participants for providing liquidity and enabling them to vote on protocol parameters. The protocol operates with minimal performance fees and no withdrawal fees, incentivizing CRV stakers and liquidity providers with CVX rewards.
Convex Finance (CVX) is a decentralized finance (DeFi) protocol built on top of Curve Finance. It enhances the rewards for Curve liquidity providers and CRV token holders by offering boosted staking rewards. Here's how it works:
- Staking CRV: CRV holders can lock up their tokens on Convex to receive cvxCRV, which grants voting rights, a portion of Curve's trading revenue, and enhanced CRV payouts. The longer the staking period, the greater the rewards.
- Earning Boosted CRV and CVX: Convex allows liquidity providers to earn trading fees and boosted CRV without locking up CRV tokens. They can receive CRV with a high boost while still holding their CRV and earn CVX rewards.
- CVX Token: CVX is the native platform token used for voting on how Convex allocates its veCRV towards Curve Finance. It can be staked to earn a share of Curve and Frax LP's CRV and FXS earnings. Vote-locked CVX tokens receive additional fees from Frax Finance LPs.
- Vote Locking: Users must vote-lock their CVX tokens for 16+ weeks to participate in voting on gauge weight votes and other proposals.
- Obtaining CVX: CVX can be bought from various decentralized exchanges (DEXs) or earned by CRV stakers and Curve liquidity providers pro-rata to CRV generated by the platform.
Overall, Convex Finance provides a platform for CRV token holders and Curve liquidity providers to earn additional interest rewards and Curve trading fees on their tokens, making it a powerful DeFi yield farming platform.
To store Convex Finance (CVX) tokens, you have several options:
Tap Wallet: You can store your CVX tokens securely in the Tap Wallet, which is provided when you create an account on the Tap platform. This wallet is Ethereum-compatible and allows you to store, trade, and stake your Convex tokens conveniently.
KuCoin Account: You can also hold your CVX tokens in your KuCoin account, which provides quick access to trading products like spot and futures markets, staking, and lending. KuCoin serves as the custodian of your crypto assets, ensuring security and convenience.
Non-Custodial Wallets: For enhanced security and control, you can withdraw your CVX tokens to a non-custodial wallet, such as hardware wallets, Web3 wallets, or paper wallets. This option grants you complete control over your private keys but may be less convenient for frequent trading.
Bit2Me Wallet: The Bit2Me wallet is another option that supports Convex Finance tokens. It is a multi-currency wallet that allows you to manage multiple currencies, create multiple wallets, and perform various operations like buying, selling, exchanging, and storing CVX tokens securely.
Ethereum Wallets: Since Convex Finance operates on the Ethereum blockchain, you can also use Ethereum wallets like Metamask to interact with the Convex Finance dApp.
Regardless of the wallet you choose, ensure that it is compatible with Ethereum and that you follow best practices for securing your private keys and account information.
To buy Convex Finance (CVX) tokens, you can follow these steps:
Create an Account:
- On Coinbase, create an account and add a payment method.
- On Uphold, create a free account and verify your identity.
- On Tap, download the mobile app and deposit funds for free.
Deposit Funds:
- On Coinbase, start a trade and select Convex Finance from the list of assets.
- On Uphold, choose your payment method and connect your Uphold wallet to your debit/credit card, bank account, or external crypto wallet.
- On Tap, deposit funds using your debit card or bank transfer.
Buy CVX:
- On Coinbase, enter the amount you want to buy and complete the trade.
- On Uphold, select the amount you want to transact and confirm the purchase.
- On Tap, buy CVX directly with your debit card or using the deposited funds.
- Store or Trade:
- On Uphold, store your CVX on the secure Uphold wallet or trade it for other assets.
- On Tap, store your CVX in the Tap Wallet for secure storage and trading.
These platforms offer various payment methods and secure storage options to facilitate the purchase and management of Convex Finance tokens.
