cvxCRV is a liquid version of vote-locked CRV (veCRV) as the latter is not tradeable. cvxCRV helps users maximize yield from staking Curve while receiving CVX rewards.
cvxCRV is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Curve and Convex, which are protocols rated as Best in Class and Moderately Risky, respectively. cvxCRV is a liquid version of vote-locked CRV (veCRV) as the latter is not tradeable. cvxCRV helps users maximize yield from locking CRV as cvxCRV auto-reinvests Curve protocol rewards and receives CVX rewards as well. Even when cvxCRV is fully collateralized with locked CRV, the secondary markets for cvxCRV can make the asset trade below 1 CRV as investors seek liquidity. It is expected that cvxCRV trades at a discount to CRV. The asset has a fixed supply.
cvxCRV is highly correlated to the overall market. Even when cvxCRV is fully collateralized with locked CRV, the secondary markets for cvxCRV can make the asset trade below 1 CRV as investors seek liquidity. It is expected that cvxCRV trades at a discount to CRV.
Convex is a liquidity aggregator built on top of Curve that issues cvxCRV as a liquid version of locked CRV (veCRV). The CRV token is used to govern the Curve 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 CRV tokens are staked and for how long. The longer CRV is staked (max of four years), the more voting rights are granted.
cvxCRV has the same token supply as CRV as it is minted 1:1 for all CRV deposits. The total supply of CRV is capped at 3.03B tokens. The initial supply consists of 1.3B tokens (
43% of total supply) with 5% distributed pre-CRV liquidity providers (with daily vesting over one year), 30% to the Curve team and investors, 3% to employees (with two year vesting), and 5% to the community reserve. The supply schedule initially distributes around 2M new CRV tokens (0.067% of the total supply) each day. After the initial 1.3B is distributed, the remaining supply will be issued at a decreasing weight until the total supply of 3.03B is fully distributed.
cvxCRV can be staked on the Convex platform to receive Curve protocol fees. Users also will receive CRV from Convex revenue, as well as inflationary CVX emissions. CRV has value accrual mechanisms through its power to promote certain pools on the platform and locking mechanism to accrue rewards for long-term liquidity providers (LPs). Voters determine the different allocations of CRV tokens to each pool. Users are also incentivized to lock their CRV tokens within the protocol in return for veCRV tokens. CRV lockers are entitled to fees generated by the protocol's liquidity pool, as well as is used to boost LP rewards.