Convex Finance is a unique decentralized finance (DeFi) protocol that provides boosted staking rewards for liquidity providers on the Curve Finance (Curve.fi) exchange. The Ethereum-based platform acts as a yield optimizer for Curve (CRV) token holders and liquidity providers.
This article will take a deeper look at Convex Finance to understand what it is all about and how it works. We shall also explore its native CVX token, predict its price until 2030, and list exchanges where it can be traded, before determining whether it is a credible cryptocurrency investment.
So, without further ado, let’s get started.
What is Convex Finance (CVX)?
Convex Finance is a DeFi platform that boosts the rewards earned by liquidity providers of Curve.fi exchange. Curve is a decentralized crypto exchange with low fees and slippage for trading stablecoins.
It allows users to earn rewards through yield farming in two ways: by staking CRV tokens or providing liquidity to available pools. While CRV holders stake their tokens for a specific period to earn rewards from trading fees, liquidity providers earn both trading fees and CRV tokens.
Curve.fi lets yield farmers boost their rewards even further using Convex Finance. Here liquidity providers can earn more without having to stake or lock up their CRV tokens. Instead, the platform offers its native CVX token, which can be staked in exchange for a portion of Convex’s earnings.
How Does Convex Finance Work?
Convex Finance is a platform where Curve.fi liquidity providers can earn more rewards on their CRV tokens. There are two ways in which investors can boost their rewards on Convex Finance:
- Staking
If you hold CRV tokens, then you can stake them on Convex in exchange for cvxCRV tokens to receive a cut from its platform fees, trading fees, CVX rewards, and airdrops.
Unlike the voted-escrowed CRV (veCRV) token on Curve, which is time-locked and cannot be withdrawn for the underlying CRV, Convex’s tokenized CRV (cvxCRV) can be exchanged for CRV anytime through a liquidity pool.
- Liquidity Providers
Liquidity providers on Curve Finance can deposit their Curve LP tokens to Convex for staking and boosting their earnings. The LP tokens can earn CRV incentive boosts, which are pooled together with other CRV stakes. The higher the number of pooled users, the more rewards Convex will distribute.
Liquidity providers can earn boosted CRV and Curve trading fees without staking any more CRV.
What is the Convex Finance (CVX) Token?
CVX is the native cryptocurrency powering the Convex Finance ecosystem. These tokens are minted pro rata for each CRV token that is claimed on Convex by Curve’s liquidity providers. In addition to that, CVX holders automatically earn a portion of Convex’s platform fees.
Convex has a maximum supply of 100 million CVX tokens with a market capitalization of $377.34 million. Currently, there are 96.42 million CVX in circulation. Convex Finance attained a trading volume of $130.33 million over the past 24 hours.
Convex Finance (CVX) Price Prediction: 2024, 2025, 2026, 2027, 2028, 2029, 2030
At the time of writing, CVX is trading at $3.93 – up 43.15% in the last 24 hours. Based on its current market price, we have projected the minimum, maximum, and average trading price for Convex between 2024 and 2030.
Please note that the prices given below are speculative and could change depending on market conditions and the performance of Convex Finance.
| YEAR | MINIMUM PRICE | AVERAGE PRICE | MAXIMUM PRICE |
|---|---|---|---|
| 2024 | $1.87 | $26.57 | $62.01 |
| 2025 | $3.57 | $6.59 | $40.00 |
| 2026 | $3.60 | $4.77 | $7.75 |
| 2027 | $2.75 | $19.51 | $62.16 |
| 2028 | $4.03 | $7.56 | $40.33 |
| 2029 | $4.91 | $7.25 | $8.96 |
| 2030 | $2.62 | $25.97 | $62.31 |
Where To Buy Convex Finance (CVX) Tokens?
CVX tokens can be purchased and traded on the following crypto exchanges:
Is Convex Finance a Credible Cryptocurrency Investment?
Convex Finance is an innovative yield optimizer platform for CRV token holders and liquidity providers on the Curve Finance exchange. It allows users to earn boosted rewards in the form of platform fees and trading fees without having to stake or lock their CRV tokens.
Being tied to Curve, the platform offers a lot more utility for liquidity providers. The CVX token is also showcasing a strong price performance going into 2030. All things considered, I would recommend Convex as a credible cryptocurrency investment due to its importance to decentralized finance and yield farming.
However, as is the case with every cryptocurrency, CVX is also prone to the extreme price dynamics of the crypto market. Therefore, you must conduct thorough research before making any investment decision regarding Convex Finance or its native token.
Read more: Crown Token(CROWN) Price Prediction 2024-2030, Where To Buy, Is It A Good Investment?
