DeFi Yield Farming

Convex Finance: Boosted Curve Staking

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Even though crypto markets, especially the DeFi niche, are not having a good time after Tesla and Elon Musk’s statements on Bitcoin and energy consumption, builders do not stop inventing innovative products that will surely rise in value sooner or later. One of the latest innovations is a product that has just been launched and is sure to get a lot of attention, as it has a large team behind it and is officially backed by Curve Finance. What are we talking about? Obviously, Convex Finance and their governance token, CVX, airdropped to CVR holders. But what does this Convex Finance do?

Convex Finance – What is it about?

Convex Finance is an innovative project that aims to help with staking and/or farming on Curve in a simplified way and with a much better (modern) design compared to what Curve has brought to the table. Before going into the details of how Convex works, it is essential to link to the audit report from MixByte, available at this address. The report shows us that the protocol is 100% secure and that there are no flaws of any kind. This is confirmed by the fact that the TVL is already very high, close to one billion dollars (in just a few days from launch!!). 

To start staking, all it takes is accessing the Stake page, connecting your Ethereum browser wallet (preferably MetaMask) and typing the amount of CVR tokens you want to transform into cvxCRV. Remember that this operation is irreversible, so you won’t be able to get CRV tokens back but will be left with cvxCRV tokens. (There are, however, exchanges that will allow you to exchange these tokens). ) Once you have typed in the desired amount, all you have to do is approve the transaction and then click on ‘Convert and Stake’, confirming the transaction again. That’s it! At the time of writing, the protocol boasts 800 million dollars in Total Value Locked and earnings of over 1.8 million dollars. That’s a lot of money for a project that was launched less than a fortnight ago. 

On the Stake page, you can see all the available pools and real-time APYs, with the CRV boost in full view. Some of the best pools at the moment are USDN with 46% APY and a CRV boost of 1.5%, EURS with 47% APY and a CRV boost of 1.54%, USDP with 39% APY and a CVR multiplier of 1.38% and so on. It must be remembered that these numbers are variable and will go down if the TVL continues to rise at this rate. The reverse will happen if the TVL goes down, but since the whole DeFi world is now supporting CONVEX, surely the APYs are bound to go down. 

As already anticipated, Convex Finance arrived accompanied by a governance token that was given away partly as an Airdrop to Curve users and CRV holders: CVX.

The CVX token by Convex Finance

The maximum supply of CVX is 100 million units, whereas the current circulation is very low: 2.3 million tokens. Today’s price is 6 dollars for each CVX token, so a marketcap of about 13 million dollars. If we consider the total, however, the fully diluted marketcap becomes over $600 million. A number that might seem like a lot, but considering the TVL of 800M, the numbers are right! On launch day, the CVX token hit a low of $2.2, only to hit a record high 2 days later at $9.9! The current price is caused by the price correction of BTC and ETH which are driving the market down at the moment.

Convex Finance has just launched and has a really strong team behind it, so we won’t be surprised if the numbers soar in the coming days. Obviously, this is not financial advice!

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