Convex

Yield Aggregator

Convex is a platform that maximizes yield for vote-escrow DeFi investments. It simplifies managing and re-investing incentive rewards and other payouts by pooling similar investments across users.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Convex is a liquidity aggregrator that monetizes governance votes to help solve DeFi 1.0 problems around mercenary liquidity and inflationary protocol rewards.
What we like less
Convex is built upon the Curve platform so it is exposed to the underlying risks and performance of Curve pools.
What it means for you
Offers you a way to boost your CRV rewards by staking directly through Convex due to its liquidity blackhole.

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Information
Exploit/Hacks
None
Info
  • Website
  • Token: CVX
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $1.3B (Rank #23)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Ethereum, Arbitrum, Polygon
  • Chain TVL
    • Ethereum: $1.23B
    • Arbitrum: $18.68M
    • Polygon: $7.21M
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors including MixBytes and DeFiYield
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • Convex will automatically reinvest any available rewards directed to the pool to help you maximize your yield. Convex specializes in compounding rewards from the Curve and Frax protocols
Things to know about Convex

How Convex works

At its core, Convex is a liquidity aggregator that pools all user CRV deposits together and stakes it to become veCRV (vote-escrowed CRV). veCRV is used for Curve governance, boosting liquidity provider (LP) rewards, and earning trading fees. CRV rewards can be boosted as high as 2.5x if the maximum amount of veCRV is applied to the deposited liquidity, though achieving this maximum reward can be very cost prohibitive for many LPs. This is where Convex comes in to play with its liquidity blackhole by allowing Curve LPs to earn trading fees and claim boosted CRV rewards without locking CRV themselves. Users deposit CRV on Convex in exchange for cvxCRV, a tokenized version of veCRV, at a 1:1 rate. This conversion is a one way street as Convex permanently locks the CRV as veCRV.

How Convex makes money

Convex has no withdrawal fees and charges minimal performance fees which are used to pay for gas and distributed to CVX stakers. Convex charges a 17% total fee on all CRV revenue generated by Curve LPs on its platform.

How you make money on Convex

You can deposit CRV in exchange for cvxCRV, which can then be staked to receive 10% of all CRV revenue generated by LPs (paid out as CRV) on the Convex platform. CVX holders may also stake to receive 5% of fees (paid out as cvxCRV), with 1% exclusively going to vote-locked CVX (vlCVX).

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Convex Pools
Convex CRV Fee Sharing
23.1%
Yield
$88M
TVL
Risk
B
Protocol
Convex
Chain
Ethereum
Convex ETH Market Making
2.8%
Yield
$80M
TVL
Risk
B
Protocol
Convex
Chain
Ethereum
Convex CVX Staking
10.3%
Yield
$22M
TVL
Risk
A
Protocol
Convex
Chain
Ethereum
Convex cvxCRV-CRV Market Making
22.3%
Yield
$17M
TVL
Risk
A
Protocol
Convex
Chain
Ethereum
Convex USD Market Making
20.9%
Yield
$10M
TVL
Risk
D
Protocol
Convex
Chain
Ethereum
Convex ETH-CVX Market Making
18.6%
Yield
$9M
TVL
Risk
B
Protocol
Convex
Chain
Ethereum
Convex TriCrv Market Making
1969.3%
Yield
$8M
TVL
Risk
C
Protocol
Convex
Chain
Ethereum
Convex USD Market Making
0.9%
Yield
$7M
TVL
Risk
D
Protocol
Convex
Chain
Ethereum
Convex USD Market Making
4.3%
Yield
$5M
TVL
Risk
C
Protocol
Convex
Chain
Ethereum
Convex ETH Market Making
3.2%
Yield
$5M
TVL
Risk
B
Protocol
Convex
Chain
Ethereum

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