Despite the fact that crypto markets, particularly the DeFi niche, are suffering as a result of Tesla and Elon Musk’s pronouncements about Bitcoin and energy use, builders continue to develop creative products that will inevitably climb in value.
One of the most recent inventions is a product released and guarantees to garner a lot of attention because Curve Finance backs it and has a large team behind it. What exactly are we discussing? Convex Finance and their governance token, CVX, went to CVR holders as an airdrop. But what exactly does Convex Finance entail?
What is Convex Finance About?
Convex Finance is a cutting-edge initiative that promises to make staking and/or farming on Curve easier and more modern than Curve’s current offerings. Before diving into the specifics of how Convex works, it’s critical to refer to MixByte’s audit report. According to the research, the protocol is completely secure and free of defects. The fact that the TVL is already near to one billion dollars (just a few days after introduction!) confirms this.
Simply go to the Stake page, connect your Ethereum browser wallet (ideally MetaMask), and type the amount of CVR tokens you wish to convert into cvxCRV to begin staking. Remember that this is an irreversible operation, thus you won’t be able to retrieve your CRV tokens back; instead, you’ll obtain cvxCRV tokens. All you have to do now is approve the transaction and then click ‘Convert and Stake,’ confirming the transaction once more. That concludes the procedure. The protocol has 800 million dollars in total value locked and over 1.8 million dollars in earnings at the time of writing. That’s a significant sum of money for a project that only started a few weeks ago.
You can see all of the available pools and real-time APYs on the Stake page, as well as the CRV boost. USDN with 46 percent APY and 1.5 percent CRV increase, EURS with 47 percent APY and 1.54 percent CRV boost, USDP with 39 percent APY and 1.38 percent CVR multiplier, and so on are some of the greatest pools right now. It’s important to realize that these figures are volatile and will decrease if the TVL continues to grow at its current rate. If the TVL falls, the APYs will fall as well, but because the entire DeFi world now supports CONVEX, the APYs will inevitably fall.
Convex Finance arrived, as expected, with a governance token. CVX, which was given out in part as an Airdrop to Curve users and CRV holders.
Convex Finance’s CVX Token
CVX has a maximum supply of 100 million units, but there are only 2.3 million tokens in circulation right now. The current price of a CVX token is $6, giving it a market capitalization of around $13 million. However, when the entire takes into account, the fully diluted market cap exceeds $600 million. A large quantity, but considering the TVL of 800M, the numbers are correct! The CVX token recorded a low of $2.2 on launch day. Only to reach a new high of $9.9 two days later! The current price is the result of BTC and ETH price corrections, which are now driving the market down.
Convex Finance is a new company with a solid team. So, don’t be surprised if the figures skyrocket in the following days. This is obviously not financial advice!
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