Convex Finance (CVX) is a decentralized finance (DeFi) protocol that operates on the Ethereum blockchain. The platform aims to optimize yield farming returns for its users by offering incentives to liquidity providers and traders.
The CVX token is the native token of the Convex Finance platform and is used for governance and incentivization. Holders of CVX can participate in the decision-making process of the platform, including proposals for changes to the protocol, and receive rewards for their contributions.
What is Convex Finance (CVX)?
Convex Finance is a DeFi protocol that allows Curve liquidity providers to earn a share of trading fees on Curve without staking liquidity there. Instead, LPs can stake with Convex and receive boosted CRV and liquidity mining rewards.
One of the unique features of Convex Finance is its focus on optimizing the returns of stablecoin-based yield farming strategies. This means that users can earn yield on their stablecoin holdings by providing liquidity to the platform's supported pools, and CVX tokens can be earned as an additional reward.
Convex Finance also offers a range of features such as staking, boosting, and fee-sharing, which allow users to earn additional rewards and incentives for their participation in the platform. The platform has gained popularity in the DeFi space due to its innovative approach to yield optimization and its focus on stablecoins.