Convex Finance is a DeFi protocol on Ethereum that sits on top of Curve, the stablecoin-focused DEX. It pools a huge amount of locked CRV voting power so that Curve liquidity providers can earn boosted rewards without locking CRV themselves, and it lets holders of its own token, CVX, steer where Curve’s token emissions go. If you’ve wondered “what is Convex” while reading about the “Curve Wars”, this guide explains the mechanics in plain English, with a worked example, the token setup, recent incidents and step-by-step ways to use it.
New to this topic? Our DeFi hub lays out the options and links every related guide.
Key takeaways:
- Curve rewards LPs more if they lock CRV as veCRV; Convex locks CRV on everyone’s behalf and shares the boost.
- Convex controls roughly half of all veCRV, making CVX the main lever over Curve gauge votes.
- Three main ways to use it: stake Curve LP tokens, convert CRV to cvxCRV, or lock CVX as vlCVX to vote and earn.
- CVX is capped at 100 million; about 93 million circulated in late 2026.
- Risks stack: Curve smart contracts, Convex contracts, token prices, and irreversible conversions.
History
Convex launched in May 2021, built by a pseudonymous team led by a developer known as C2tP. Its timing was ideal. Curve had become DeFi’s main venue for stablecoin swaps, and Curve’s CRV emissions were directed by votes from veCRV, which is CRV locked for up to four years. Protocols that needed deep liquidity for their stablecoins wanted those emissions pointed at their pools.
Convex offered CRV holders a deal: convert CRV into a liquid token (cvxCRV) and earn a share of platform revenue, while Convex locks the CRV for the maximum period. Within months it had accumulated the largest veCRV position in existence. That kicked off the Curve Wars: protocols such as Frax, Lido and others bought CVX or paid “bribes” to CVX voters to direct Curve rewards to their pools, which in turn attracted liquidity. Third-party bribe markets such as Votium became an income stream for vlCVX holders.
Notable events since then:
- July 2023: a bug in certain versions of the Vyper compiler let attackers drain several Curve pools. Curve, not Convex, was the point of failure, but LPs staked through Convex were exposed to the affected pools. It’s a reminder that Convex inherits every Curve risk.
- June 2024: large CRV-backed loans held by Curve’s founder were liquidated during a sharp CRV price drop, rattling the Curve ecosystem.
- June 2025: Resupply, a stablecoin protocol set up as a sub-DAO by the Convex and Yearn communities, lost about $9.6 million when an attacker manipulated an exchange rate in a newly deployed market and borrowed against negligible collateral. Convex’s core contracts weren’t exploited, but the incident hit the broader Convex-Yearn ecosystem.
Despite the industry’s shifts, Convex has kept its position: analyses in early 2026 estimated it still held around 47-50% of veCRV.
How Convex Works
Start with Curve’s rule: an LP earns base CRV rewards, and up to 2.5 times more if they also hold enough veCRV relative to their liquidity. Most LPs don’t want to lock CRV for four years. Convex solves this:
If you have not yet deposited into a Curve pool, our step-by-step Curve Finance tutorial explains swaps, pool deposits and how CRV rewards are earned before you add Convex on top.
- CRV holders deposit CRV into Convex, which locks it as veCRV permanently. In exchange they receive cvxCRV, a liquid token they can stake for a share of protocol fees. This conversion is one-way; you can’t redeem cvxCRV for CRV through Convex, only sell it on a DEX.
- Curve LPs deposit their LP tokens into Convex instead of directly into Curve. Because Convex’s giant veCRV balance applies to the pooled deposits, those LPs earn boosted CRV plus CVX rewards.
- Convex takes a cut of the CRV earned (historically around 17%), distributed to cvxCRV stakers, vlCVX lockers and transaction callers.
- vlCVX holders (CVX locked for 16 weeks plus the remainder of the current week) decide how Convex votes its veCRV across Curve gauges, and earn a share of fees plus any bribes they accept.
Worked example
Say you provide $10,000 of liquidity to a Curve stablecoin pool. Without veCRV, the pool might pay you a base CRV reward of, for illustration, 2% a year. Fully boosted LPs could earn up to 2.5 times that, 5%. Through Convex you’d receive close to the boosted rate minus Convex’s cut, plus some CVX on top, without buying or locking any CRV. Rates are always variable; check the live APR on Convex’s site, and remember that a portion is paid in CRV and CVX, whose prices can fall.
Tokenomics
| Token | What it is | Key detail |
|---|---|---|
| CVX | Governance and reward token | Max supply 100 million; minted to LPs in proportion to CRV earned on a declining schedule; about 93 million circulating |
| vlCVX | Vote-locked CVX | 16-week lock; controls Convex’s veCRV votes; earns fees and bribes |
| cvxCRV | Liquid wrapper for CRV locked by Convex | Irreversible conversion; trades at a market price that can sit below 1 CRV |
CVX’s value depends on how valuable Curve’s emissions are to other protocols. When many projects compete for Curve liquidity, bribes rise and vlCVX earns more; when Curve’s role shrinks, so does demand for CVX votes. With nearly all of the supply already circulating, future dilution is limited.
Bribe markets for emissions were one experiment among many, and our roundup of DeFi 2.0 projects and design ideas looks at which models, such as real yield and liquid staking, actually lasted.
How to Use Convex: Three Paths
1. Boost Curve LP rewards
- Provide liquidity on Curve and receive LP tokens (see our Curve guide).
- Go to Convex’s official site, connect your wallet, and find the matching pool.
- Approve and deposit your LP tokens; rewards in CRV and CVX accrue.
- Claim periodically; you can withdraw LP tokens at any time, gas permitting.
2. Convert CRV to cvxCRV
Useful if you hold CRV long term and want yield without a four-year lock. Before converting, compare the cvxCRV price on Curve’s cvxCRV/CRV pool: if cvxCRV trades below 1 CRV, buying it on the market may be cheaper than converting. Remember the conversion is permanent.
3. Lock CVX as vlCVX
Lock CVX for about 16 weeks, vote (or delegate your vote), and claim fee rewards and bribes, often through Votium or VoteMarket. Locks can be relocked when they expire; locked CVX can’t be sold mid-lock.
Gas costs on Ethereum mainnet make small positions inefficient; consider whether the yield covers deposit, claim and withdrawal fees. Our yield farming guide explains how to compare net returns.
Convex vs Staking Directly on Curve vs an Auto-Compounding Vault
If you already hold a Curve LP token, you have three common options. None is “best” for everyone; it depends on how much CRV you hold and how hands-on you want to be.
| Option | Boost | Effort | Extra risk layer | Suits |
|---|---|---|---|---|
| Stake in Curve’s gauge directly | Only if you lock your own veCRV | Low, but locking CRV for years is a big commitment | Curve only | Large CRV holders who want full control of their votes |
| Deposit via Convex | Near-maximum, minus Convex’s fee | Low; you claim and compound manually | Curve + Convex | Most LPs without veCRV |
| Auto-compounding vault built on Convex | Convex boost, rewards sold and reinvested for you | Lowest | Curve + Convex + vault contracts and strategy fees | Small or passive positions where manual claiming isn’t worth the gas |
Before depositing anywhere, check the pool’s composition (which stablecoins or assets you’d actually hold), how much of the quoted APR comes from CRV and CVX versus trading fees, and whether the position is large enough that gas for claiming makes sense. Afterwards, review and revoke token approvals you no longer need.
Risks
- Layered smart-contract risk: you’re exposed to Curve’s pool contracts, Convex’s contracts and any token in the pool.
- Impermanent loss and depegs: stablecoin pools seem safe until one asset depegs; you can end up holding the weakest coin. See our impermanent loss explainer.
- Reward token risk: much of the yield is paid in CRV and CVX, which have fallen sharply in past downturns.
- Irreversibility and locks: cvxCRV can’t be redeemed; vlCVX can’t be withdrawn early.
- Ecosystem contagion: incidents in related projects, as with Resupply in 2025, can hit sentiment and liquidity.
- Dependence on Curve: if Curve loses relevance, Convex follows.
Is CVX a Good Investment?
CVX is essentially a leveraged bet on Curve’s importance. Bullish case: stablecoin growth keeps Curve central, protocols keep paying for emissions, and vlCVX earns steady income from fees and bribes. Bearish case: liquidity migrates to other DEXs or to issuer-run venues, Curve emissions lose value, and bribe income dries up. Compare Convex with related yield aggregators such as Yearn, and keep any position small relative to your portfolio.
FAQ
Is Convex safe to use?
Convex has operated since 2021 and its core contracts have been audited and battle-tested, but no DeFi protocol is risk-free. You also carry Curve’s risks, as the 2023 Vyper compiler exploit showed, and related ventures like Resupply have been exploited. Use the official site, review approvals and avoid depositing more than you can afford to lose.
What’s the difference between CVX, vlCVX and cvxCRV?
CVX is Convex’s governance and reward token. vlCVX is CVX locked for about 16 weeks to vote on Curve gauges and earn fees and bribes. cvxCRV is a liquid token you receive for permanently depositing CRV into Convex; it earns a share of platform revenue but can’t be converted back to CRV through Convex.
Why do protocols bribe vlCVX holders?
Curve’s CRV emissions attract liquidity to whichever pools receive them. A stablecoin issuer that wants deep, cheap liquidity for its coin can pay vlCVX voters to direct Convex’s large veCRV vote toward its pool. Paying bribes is often cheaper than paying liquidity incentives directly.
Can I unstake my Curve LP tokens from Convex at any time?
Yes. LP tokens deposited for boosted rewards can be withdrawn whenever you like, subject to Ethereum gas fees. Only cvxCRV conversions (permanent) and vlCVX locks (about 16 weeks) are restricted. Claim pending rewards before withdrawing if you want them in the same transaction flow.
Crypto is volatile and risky; this is education, not financial advice. Do your own research.
