How to Buy Convex Finance (CVX)
Beginner’s Guide
What Is Convex Finance (CVX)?
Convex Finance (CVX) is a decentralized finance (DeFi) protocol built on the Ethereum blockchain. The platform is designed to optimize the yield generated by various DeFi applications, including lending and borrowing platforms, liquidity pools, and other yield-generating products.
The platform is run by a community-driven DAO, which allows CVX holders to participate in governance and decision-making processes related to the platform’s development and management. The goal of the platform is to create a seamless, easy-to-use interface for accessing and maximizing the yield generated by different DeFi applications, with a focus on optimizing returns and reducing fees.
CVX tokens are used to participate in the platform’s governance, as well as to access special features and benefits. For example, CVX holders can earn additional rewards by staking their tokens, which helps to secure the platform and incentivize participation in the ecosystem.
Overall, Convex Finance aims to simplify and streamline the DeFi experience for users, while also maximizing the yield generated by different applications and products. With its focus on community-driven governance and optimization, the platform is poised to become an important player in the rapidly growing DeFi landscape.
How to Buy Convex Finance Summary
- Get a Convex Finance wallet (e.g. Ledger, Trezor ,Guardia, Exodus , AtomicWallet)
- Find an exchange that sells Convex Finance (e.g. Binance, Kucoin, Crypto, GATE, MEXC)
- Deposit money and make the trade
- Withdraw the Convex Finance to your wallet
Buying Convex Finance in 3 Simple Steps
Step 1 – Get a CVX wallet
Convex Finance Hardware Wallets
Convex Finance (CVX) is an ERC-20 token that runs on the Ethereum blockchain. As such, any hardware wallet that supports ERC-20 tokens should be compatible with CVX.
Some popular hardware wallets that support ERC-20 tokens and are therefore compatible with CVX include:
- Ledger Nano S and Nano X
- Trezor Model T and One
- KeepKey
- Ledger Blue
- BitBox02
To use a hardware wallet with Convex Finance, users can simply connect their wallet to a compatible Ethereum wallet application, such as MyEtherWallet or MetaMask, and then send their CVX tokens to their hardware wallet address.
It is important to note that hardware wallets provide an additional layer of security by keeping users’ private keys offline, which helps protect against hacks and other security risks. However, users should always follow best practices for keeping their hardware wallet safe, such as backing up their recovery phrase in a secure location and never sharing their private keys with anyone.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Convex Finance Software Wallets
Convex Finance (CVX) is an ERC-20 token that runs on the Ethereum blockchain. As such, any software wallet that supports ERC-20 tokens should be compatible with CVX.
Some popular software wallets that support ERC-20 tokens and are therefore compatible with CVX include:
- MyEtherWallet
- MetaMask
- Exodus
- Trust Wallet
- Atomic Wallet
To use a software wallet with Convex Finance, users can simply connect their wallet to a decentralized exchange or liquidity pool, such as Uniswap or Curve, and then trade or stake their CVX tokens. Users can also transfer their CVX tokens to other Ethereum wallet addresses, as long as those addresses are compatible with ERC-20 tokens.
It is important to note that software wallets are generally less secure than hardware wallets, as they rely on online connections and can be more vulnerable to hacks and other security risks. Therefore, users should take steps to secure their software wallet, such as using a strong and unique password, enabling two-factor authentication, and never sharing their private keys with anyone.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Convex Finance software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Convex Finance (CVX) Exchange
Buy Convex Finance through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Convex Finance through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Buy Convex Finance through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos.The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.
Buy Convex Finance through Gate.io
- Gate.io is a crypto exchange founded in the fall of 2017. The platform is a part of Gate Technology Inc corporation, and has a registration address in Virginia, USA. The platform does not have an official license. Its interface is available for working in three versions: English, Chinese and Japanese.
Buy Convex Finance through MEXC
- Founded in 2018, MEXC Global is known as the exchange of high performance and mega transaction matching technology. The team at MEXC Global are some of the first movers and pioneers of financial and blockchain technology. Currently, MEXC Global caters to 10 M+ users in more than 170 countries around the world and we have just started.
Step 3 – Withdraw Your Convex Finance (CVX)
Once you decide on an exchange, open an account and buy your Convex Finance. Make sure to withdraw the Convex Financefrom the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
More Information
Who Are the Founders of Convex Finance?
Convex Finance was developed by a team of anonymous developers. However, unlike many shitcoins, Convex Finance is considered one of the most important and influential protocols in decentralized finance and thus a fairly low-risk investment.
What Makes Convex Finance Unique?
Convex Finance (CVX) is a decentralized finance (DeFi) platform that operates on top of the Curve Finance protocol. It is designed to make it easier for users to earn rewards and provide liquidity to Curve pools, which are essential building blocks of the DeFi ecosystem.
Here are some of the key features that make Convex Finance unique:
CVX Tokenomics: The CVX token is the native token of the Convex platform and is used to incentivize users to provide liquidity to Curve pools. CVX holders can stake their tokens and earn rewards in the form of additional CVX tokens. The tokenomics of CVX are designed to encourage long-term staking and reward users who contribute to the growth and stability of the Curve ecosystem.
Reduced Gas Fees: Convex Finance has implemented several optimizations to reduce gas fees for users who provide liquidity to Curve pools. This makes it easier and more affordable for users to participate in the platform.
Incentives for Stablecoin Liquidity: Convex Finance offers higher incentives for users who provide liquidity to Curve pools that contain stablecoins, which are less volatile and more predictable than other cryptocurrencies. This incentivizes users to provide stablecoin liquidity, which is essential for the stability and growth of the DeFi ecosystem.
Decentralized Governance: Convex Finance is governed by its community of token holders, who have the power to vote on changes to the protocol. This decentralized governance model ensures that the platform is run in a transparent and democratic manner.
No Minimum Requirements: Convex Finance has no minimum requirements for users who want to provide liquidity to Curve pools or stake their CVX tokens. This makes it more accessible and inclusive for users of all sizes and experience levels.
Partnership with Curve Finance: Convex Finance operates on top of the Curve Finance protocol, which is one of the most popular DeFi protocols in the cryptocurrency space. This partnership ensures that Convex can leverage the liquidity and user base of Curve to achieve its goals and grow its ecosystem.
Overall, these features make Convex Finance unique and contribute to its growing popularity as a leading DeFi platform in the cryptocurrency space.
Convex Finance plays a key role in the Curve wars thanks to its unique incentive structure. Its sole use case is to accumulate as much TVL as possible to achieve the protocol’s goal of controlling as big a stake of Curve Finance as it can. In other words, Convex Finance targets only CRV holders and Curve liquidity providers and does so in two ways:
- CRV holders receive cvxCRV for staking the CRV.
- Curve LPs receive boosted rewards for staking their LP tokens with Convex.
Curve Finance issues veCRV (vote-escrowed CRV) for staked CRV that liquidity providers receive as a reward. In short, veCRV are time-locked CRV tokens with boosted voting power and rewards, which are both a function of the lock-up period of the underlying CRV. You can read more about veCRV here. CRV rewards can go as high as 2.5X of the initial rewards, but the higher the liquidity deposited, the more difficult it is to attain the maximum rewards.
Put differently, it is nearly impossible for any one party to stake enough liquidity to attain the maximum boost, which is where Convex Finance comes in. Convex acts as a cartel that pools the assets of individual stakers and benefits from their aggregated liquidity. Even low-level investors can stake their Curve Finance LPs with Convex and receive boosted rewards that would otherwise not be attainable. They receive:
- The interest rate on their provided liquidity.
- A share of the Curve trading fees.
- The boosted rewards from Convex.
- CVX tokens
Furthermore, you can stake your CRV tokens and receive cvxCRV to receive:
- veCRV rewards
- Convex trading fees
- CVX tokens
- Airdrops going to veCRV token holders
How Many Convex Finance (CVX) Coins Are There in Circulation?
CVX has a total supply of 100 million CVX according to the following distribution:
- 50% Curve LP rewards Rewarded pro-rata for CRV received on Convex
- 25% Liquidity mining Distributed over four years. (Incentive programs, currently CVX/ETH and cvxCRV/CRV)
- 9.7% Treasury Vested over one year. Used for future incentives or other community driven activities
- 1% veCRV holders Instantly claimable airdrop
- 1% veCRV holders who vote to whitelist Convex Instantly claimable airdrop
- 3.3% Investors Vested over one year. 100% of investment funds used to pre-seed boost and locked forever(no cvxCRV minted).
- 10% Convex Team Vested over one year
cvxCRV are minted at a 1:1 ratio for every CRV staked. CVX tokens can be used to participate in proposals in the Convex Finance protocol.
How Is the Convex Finance Network Secured?
Convex was audited by MixBytes, and the results can be found here. Its treasury is secured by a 3 of 5 multisig consisting of the following parties:
- C2tP – Convex Finance
- Winthorpe – Convex Finance
- Charlie – Curve Finance
- Tommy – Votium
- Sam – Frax Finance
However, a bug in one of the smart contracts at the beginning of March 2022 forced the team to re-deploy the vote-locking contract and caused a price drop in CVX.
Convex Finance staking ?
Staking is a key feature of Convex Finance (CVX), a decentralized finance (DeFi) platform that operates on top of the Curve Finance protocol. CVX staking allows users to earn rewards in the form of additional CVX tokens for providing liquidity to the Curve protocol.
Here’s how CVX staking works:
Users first need to acquire CVX tokens, which can be bought on several cryptocurrency exchanges. CVX tokens can also be earned by providing liquidity to Curve pools that are supported by Convex.
Once users have acquired CVX tokens, they can stake them in the Convex staking contract. The staking contract is a smart contract on the Ethereum blockchain that manages the distribution of rewards to stakers.
CVX stakers earn rewards in the form of additional CVX tokens. The amount of rewards earned is proportional to the amount of CVX staked and the length of time the tokens are staked for. The longer the staking period, the higher the rewards.
Users can withdraw their staked CVX tokens at any time, but doing so may result in a penalty fee.
Staking rewards are distributed every day, and users can claim their rewards at any time.
Overall, CVX staking is a great way for users to earn passive income on their cryptocurrency holdings while also contributing to the liquidity and growth of the Curve protocol. However, as with any investment, it is important to do your own research and understand the risks involved before staking your CVX tokens.