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CVX token, and how it fits in the Convex platform
- CVX can be staked on Convex Finance to earn a share of Curve and Frax LP's CRV and FXS earnings.
- Platform fees (CRV, FXS) that would be returned to CVX stakers are first locked as veCRV and veFXS, respectively, and tokenized as cvxCRV and cvxFXS before being given to CVX stakers.
- Vote-locked CVX tokens receive additional fees from Frax Finance LPs.
- Vote-locked CVX is used for voting on how Convex Finance allocates it's veCRV and veFXS towards gauge weight votes and other proposals. Users must vote-lock their CVX tokens in order to participate. Vote locking requires users to time-lock their CVX tokens for 16+ weeks. Full details on the vote locking mechanism can be found on the the "Vote Locking" page.
- CVX is rewarded to CRV stakers and Curve.fi liquidity pools pro-rata to CRV generated by the platform. If you are in a high CRV rewards liquidity pool you will receive more CVX for your efforts.