What is Convex Finance (CVX)?
Convex Finance (CVX) is a DeFi protocol that helps Curve liquidity providers and CRV holders boost their earnings without managing the complex locking mechanics themselves. Instead of committing tokens for years to gain voting power on Curve, users deposit into a shared pool and let the protocol handle the rest. CVX is the governance token that sits at the center of this system.
How does Convex turn individual CRV into collective power?
On Curve, voting weight and fee shares come from locking CRV as veCRV for long periods—an impractical move for most individuals. Convex pools everyone’s CRV together and locks it permanently as veCRV, aggregating small deposits into one large voting block. Depositors receive cvxCRV in return, a liquid token that can be traded or used elsewhere while still earning yield from the locked CRV.
Curve liquidity providers can also stake their LP tokens on Convex. They earn CVX rewards and a cut of platform fees on top of their usual Curve returns, and they automatically benefit from the boost that comes with Convex’s veCRV position—without needing to hold or lock any CRV themselves.
What do CVX holders govern?
The veCRV power that Convex accumulates decides where CRV rewards flow on Curve. CVX stakers, specifically those who vote-lock their tokens, direct this power. Every two weeks they vote on which Curve pools should receive a larger share of emissions.
This voting creates a second layer of competition often called the Curve Wars. Other protocols, eager to attract CRV rewards to their own pools, pay CVX holders in exchange for votes. Platforms like Votium facilitate these exchanges, giving CVX stakers an additional yield stream beyond protocol fees. What was once a game for large institutions becomes accessible to anyone who pools their CVX and participates.
