What is Convex Finance (CVX)? How To Invest in CVX Token In India?

What is Convex Finance (CVX)?

Convex Finance is a DeFi protocol for boosting rewards earned by liquidity providers of Curve.fi. Before diving into Convex Finance, let’s understand the functions of Curve Finance and what boosted rewards are. 

Curve Finance is a decentralized exchange DEX for trading stablecoin with low fees and slippage and earning rewards through yield farming. The platform has two ways for yield farming: staking CRV(Curve’s native governance token) and providing liquidity to available liquidity pools. CRV holders stake CRV tokens for a specific period to earn trading fees and veCRV tokens, while liquidity providers earn trading fees and CRV tokens to provide liquidity. Users can boost their rewards by staking more CRV tokens. 

That’s where Convex Finance comes in. It allows liquidity providers to earn more rewards without staking or locking their CRV tokens. CVX is a native utility and governance token for Convex Finance that incentivizes users to stake tokens.

Who are the Founders of Convex Finance?

An anonymous group of developers developed Convex Finance with the goal of opening new opportunities for users of Curve.fi.

How does Convex Finance work?

The Convex finance ecosystem works by following methods:

• For CRV Staking: Users can stake CRV tokens on Convex for cvxCRV tokens to receive a share of Convex platform fees, Curve trading fees, CVX rewards, and airdrops. Unlike Curve’s veCRV(voted-escrowed CRV), which is time-locked and users can not withdraw underlying CRV, Convex Finance cvxCRV(tokenized veCRV) tokens can be exchanged for CRV anytime through cvxCRV/CRV liquidity pool.

• For Liquidity Providers: Curve liquidity providers can deposit their LP tokens to Convex systems which are automatically staked into Curve gauge with others, increasing reward rates. Users earn boosted CRV and Curve trading fees without staking CRV themselves.
• Voting: Users can vote-lock their CVX tokens for voting on the proposals and decisions of Convex Finance. Moreover, Convex holds veCRV tokens on its user’s behalf and can participate in voting for Curve platform decisions. These Curve voting rights are also passed to staked CVX holders.

What makes CVX Unique-Use Cases?

• Convex Finance has depositing or withdrawal fees and very low-performance fees.
• Other than Curve.fi, Convex Finance provides similar services to liquidity providers of Frax Finance, an algorithmic stablecoin protocol.
• Vote-locked CVX token holders receive Convex Finance platform fees and additional fees from Curve.fi and Frax Finance.
• CVX stakers can delegate their voting right to other addresses or entities.
• cvxCRV tokens offer various rewards to users, including CVX tokens, platform fees, and airdrops of veCRV token holders.

Convex Finance (CVX) Price Analysis

Source: TradingView

• CVX price today is trading at $4.40, with a 24-hour trading volume of $5,276,664. In the last 24 hours, The CVX price has dropped about 3.32%. The market cap of CVX is standing at $345,534,292 as of May 25, 2023.
• CVX price has been down for the past couple of weeks, with its recent support level residing at $4.34.
• Below 40 RSI also indicates bearishness in the market. However, there is a possibility of CVX price reversal, which might go upto $4.80.

How to Buy CVX Tokens in India?

To buy CVX Token in India, just follow the below-mentioned steps:

• Download the CoinDCX App on your Smartphone
• Enter the details required for registration.
• Complete KYC
• After your profile is verified, fund your wallet and buy a CVX