Understanding cvxCRV
cvxCRV token, and how it fits in the Convex platform
If a user deposits CRV into Convex, that CRV is locked forever on the platform as veCRV.
A tokenized version of veCRV, cvxCRV, is returned to the user at a 1:1 rate.
cvxCRV can be staked into the platform to receive normal Curve admin fees one would get for staking their veCRV on Curve.fi, as 3CRV.
Additionally, users staking cvxCRV will receive CRV from Convex's performance fee, as well as the platform native token CVX.
Rather than staking cvxCRV, users can also choose to contribute to the Sushiswap liquidity pool cvxCRV/CRV.
Users can then stake the SUSHI LP token on Convex Finance to receive a separate pool of CVX rewards for providing liquidity to others to enter and exit convex CRV ecosystem via the cvxCRV token.
Last updated 3 months ago