Convex

Convex (Convex Finance) is a decentralized finance protocol that lets liquidity providers deposit LP tokens from Curve, Frax and f(x) Protocol to earn rewards with a shared "group boost" applied. Depositors begin accruing rewards automatically after depositing, can claim accumulated rewards at any time, and can withdraw their LP tokens without a lock-up. The protocol also supports staking of cvxCRV, which is presented on the site with a variable APR and a running total of CRV earned by Convex users.

A second pillar of the protocol is governance. Locking CVX (creating vlCVX) entitles holders to vote on where emissions are directed on the platforms Convex boosts, on a 14-day cycle, and to participate in the governance of Curve, f(x) Protocol, Frax and Convex itself. The site tracks governance power in the form of veCRV, veFXN, veFXS and RSUP controlled by the protocol, along with total value locked, platform revenue, treasury value, total locked CVX, emissions controlled per 14-day period, and proposal and vote counts. Convex describes its smart contracts as immutable and non-custodial, and states they are peer-reviewed and audited by third-party auditing firms.

Business model

Convex sits as an aggregation and boosting layer on top of other DeFi protocols: it pools user deposits of LP tokens from Curve, Frax and f(x) Protocol to apply a collective boost to rewards, and concentrates governance weight through locked CVX to direct those protocols' token emissions. The site reports a platform revenue figure and a protocol treasury, indicating value accrues at the protocol level in addition to rewards distributed to depositors and stakers.