![]() The above material and content should not be considered to be a recommendation to invest in a strategy or any individual digital asset. How Convex Finance uses veCRV to boost rewards for Curve liquidity providers And if you're a big LP, the astronomical amount of veCRV needed to max boost can feel unattainable. If you're a small LP, you probably don't want to go through the hassle of buying CRV, locking it into veCRV, then using that to boost. To get that maximum reward takes a lot of veCRV. Of course, the more tokens you LP in the pool, the more veCRV required to boost up to 2.5x. You can boost your CRV rewards as high as 2.5x if you apply the maximum amount of veCRV required for your deposited liquidity. Going back to the whole boosted rewards thing - the more veCRV you have, the more you can boost the CRV rewards from your liquidity pool. VeCRV is just a fancy name for time-locked CRV that can be used in governance, boosting rewards, earning trading fees, and receiving airdrops. Curve tokens (CRV) are issued as yield farming rewards to LPs and are convertible into veCRV (vote-escrowed CRV). Where Curve gets really sweet for LPs is in its reward structure. Since stablecoins are far less volatile than other cryptocurrencies, they're perfect for liquidity providers to avoid impermanent losses. Understanding Curve Finance & veCRV tokenĬurve is a decentralized exchange with a heavy focus on stablecoins. To get that point, you'll need to know a little bit about how Curve Finance works. Well, it's all about the boosted rewards. You might be asking yourself why you would stake CRV on Convex rather than Curve for veCRV, or why you'd deposit LP tokens there instead of Yearn. Curve liquidity providers: If you hold Curve LP tokens, Convex lets you stake + boost them.CRV holders: If you hold CRV tokens, Convex lets you stake them for cvxCRV.There are really only two people Convex is aimed at: ![]() The sheer simplicity and single-minded focus of Convex's offering are what has made the platform so successful. In a DeFi era where protocols offer countless products and options, it's reasonable to expect more out of Convex. Put another way, Convex Finance offers boosted Curve staking. Convex Finance is a platform for CRV token holders and Curve liquidity providers to earn additional interest rewards and Curve trading fees on their tokens.
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