Convex FXS

cvxFXS

cvxFXS is a liquid version of locked FXS, as the latter is not tradeable. cvxFXS helps investors auto-reinvest Frax protocol fees, while earning CVX rewards on top.

Risk Rating
Watch Out
$2.75
-0.65%
Summary
What we like
cvxFXS is a tokenized version of locked FXS (veFXS) that is liquid (can be traded), retains voting power, and still receives protocol rewards.
What we like less
Depositing FXS to mint cvxFXS is a one-way conversion as Convex permanently locks up the deposited FXS for veFXS. As such, cvxFXS may trade below 1 FXS on decentralized exchanges.
What it means for you
cvxFXS provides you with a great way to earn a portion of protocol fees generated from the volatility of stable assets traded on Curve while retaining liquidity of the underlying FXS value.

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Information
Blockchain
  • Ethereum
Key Metrics
  • Fully Diluted Valluation: $20.5M
  • Total Supply: 7,441,921
  • Volume (24H): $13.7K
  • ATH: $14.99 (02/28/2024)
  • ATL: $2.45 (06/13/2024)
Risk Assessment
Watch Out
Asset Strength

cvxFXS is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Frax and Convex, which are protocols both rated as Watch out.

Asset Tokenomics

cvxFXS has an uncapped supply but has inflation control or burn mechanisms in place. cvxFXS is exposed to death spiral risk as its price depends on another asset, thus creating negative feedback loops. cvxFXS is a liquid version of vote-locked FXS as the latter is not tradeable. cvxFXS helps users maximize yield from locking FXS as cvxFXS auto-reinvests FXS rewards and receives CVX rewards as well. Even when cvxFXS is fully collateralized with locked FXS, the secondary markets for cvxFXS can make the asset trade below 1 FXS as investors seek liquidity. It is expected that cvxFXS trades at a discount to FXS.

Asset Volatility

cvxFXS is moderately correlated to the overall market. Even when cvxFXS is fully collateralized with locked FXS, the secondary markets for cvxFXS can make the asset trade below 1 FXS as investors seek liquidity. It is expected that cvxFXS trades at a discount to FXS.

Dependencies

Convex


Frax

Things to know about cvxFXS

What is cvxFXS used for?

Convex is a liquidity aggregator built on top of Curve that issues cvxFXS as a liquid version of locked FXS (veFXS). The FXS token is used to govern the Frax protocol and give holders the ability to submit proposals and potential changes to the allocation of pool rewards. The amount of voting power a user has is determined by how many FXS tokens are staked and for how long. The longer FXS is staked (max of four years), the more voting rights are granted.

cvxFXS tokenomics

cvxFXS has the same token supply as FXS as it is minted 1:1 for all FXS deposits. The total supply of FXS is capped at 100M tokens. The initial supply includes 60M tokens distributed to the community for yield farming programs and DeFi initiatives (maximum one year emission between 18-30M depending on the collateral ratio of FRAX), 5M to a community governed treasury, and 35M to the team and investors (20% team, 3% strategic advisors and early contributors, 12% accredited private investors). The actual supply is intended to be deflationary as long as there is demand for FRAX and while it is minted at higher collateral ratios.

How does cvxFXS accrue value?

cvxFXS can be staked on the Convex platform to receive Frax protocol fees. Users also receive CRV from Convex revenue, as well as inflationary CVX emissions. FXS has value accrual mechanisms through its power to promote certain pools across its AMO and locking mechanism to accrue rewards for long-term liquidity providers. Voters determine the different allocations of FXS tokens to each pool, which can boost rewards for liquidity providers. Users are incentivized to lock their FXS tokens within the protocol in return for veFXS tokens. FXS lockers are entitled to fees generated from minting and redeeming as well as by the protocol's several product lines.

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