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Convex

Curve Finance is a community-owned and governed protocol, with the Curve DAO token (CRV) at its center. The high-level purposes of CRV are to incentivize liquidity providers in the Curve Finance ecosystem as well as get as many members involved as possible in the governance of the protocol [1].

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. Put another way, Convex Finance offers both.

1. Is It a Protocol or Token? -

Both Protocol and Token

2. Category

Yield Aggregator

3. Does it have TVL?

Yes, $14.6 bln on 24th Febuary 2022 [2].

Current numbers can be seen here.

How is it calculated in different Places ?

  • Frontend: TVL is calculated using On-chain data.

  • Dune: No publicly available TVL dashboard

  • Defipulse: $9.15 bln ( 37.3 % Deviation ) [3].

  • Defillama: $13.03 bln ( 10.7% Deviation) [3] [4].

4. What are it’s core metrics?

As of 24 Febuary 2022 :

  • Liabilities: $ 0.7 bln [5].

  • Assets: $367.8 mln [2].

  • Reserves: Not available.

  • Treasury: $11.2 mln [6].

  • Market Cap Native: $ 1 bln.

  • Ratio of Reserves to TVL (deposits only; unleveraged) Not available.

  • Ratio of Treasury to ingleTVL (deposits only; unleveraged) : 0.00007671.

  • Ratio of native Market Cap to TVL (deposits only; unleveraged) : 0.068.

  • Are they double-counting leverage? No.

5. Further details on the Token?

Markets where it’s available?

The list of markets can be found here [7].

Liquidity:

  • Supply - the total amount of tokens in circulation - 51.9 mln [8].

  • Total Supply - on-chain supply minus burned tokens - 85 mln [8].

  • Max Supply - theoretical maximum as coded - 100mln [8].

6: What chain is it on?

  1. Ethereum

7. Could it be exploited?

Is it Cross Chain?

No, it only supports Ethereum Chain.

8. What assets does it support?

Supports various assets like AAVE, Compound token, etc [9].

9. How does it combine the risks of those assets?

Many asset in Convex are wrapped like WETH. Wrapping ether allows the direct, seamless exchange between ether and ERC-20 tokens without the need for a trusted third-party and without incurring in unnecessary risks such as unexpected errors during transactions [10].

10. Does it wrap and distribute assets?

Yes, it does wrap assets but does not distribute them.

11. What are the conditions for the wrapped assets to be liquidated? Back to the original portfolio or adjusted for value?

Assets are not liquidated as no collateral is involved.

12. What are the dependencies of the protocol? How does risk bubble up?

To be updated

13. Does it have a governance token?

Yes, veCRV token [11].

14. How decentralized is

The Token

Distribution [12] :

  • Max Supply: 100 million

  • 50% Curve LP rewards Rewarded pro-rata for CRV received on Convex

  • 25% Liquidity mining Distributed over 4 years. (Incentive programs, currently CVX/ETH and cvxCRV/CRV)

  • 9.7% Treasury Vested over 1 year. Used for future incentives or other community driven activities

  • 1% veCRV holders Instantly claimable airdrop

  • 1% veCRV holders who vote to whitelist Convex Instantly claimable airdrop

  • 3.3% Investors Vested over 1 year. 100% of investment funds used to pre-seed boost and locked forever(no cvxCRV minted).

  • 10% Convex Team Vested over 1 year

Fees Structure

There is a 17% total fee on all CRV revenue generated by Curve LP's on our platform [13].

  • 10% goes to cvxCRV stakers. This is paid out as CRV.

  • 5% goes to CVX stakers, which includes vote-locked CVX. This is paid out as cvxCRV.

  • 1% goes exclusively to vote-locked CVX. This is paid out as cvxCRV.

  • 1% goes to the harvest caller. This is paid out as CRV.

Users

  • Convex Total unique users: 16,269 [5].

  • Convex Total CVX Holders: 10,044 [5].

  • Convex CVX Total Staked: 40 mln [5].

  • Convex CVX Total Locked: 38.8 mln [5].

15. Additional Information VAR

  • VaR - To be Updated

  • LCR - To be Updated

  • Are there any other metrics that might be useful? Like Sharpe Ratio - To be Updated

16. How is this exposed to layers in DeFi:

What layers are upstream (built on top of the protocol)?

Not available

What layers are downstream (protocols/assets built on or put into the platform). For example, yield farms are built on top of lending protocols

A Yield Optimizer Built on Top of Curve Finance [14].

17. Smart Contract information

All contracts relevant to convex finance can be found here [15].

CVX Token contract: 0x4e3fbd56cd56c3e72c1403e103b45db9da5b9d2b

References

  1. Medium, https://medium.com/coinmonks/convex-curve-curve-d7e28cd6c1d9.

  2. Convex Finance, https://www.convexfinance.com.

  3. Defipulse, https://www.defipulse.com/projects/convex-finance.

  4. Github, https://github.com/DefiLlama/DefiLlama-Adapters/blob/main/projects/convex/index.js.

  5. Dune, https://dune.xyz/Marcov/Convex-Finance.

  6. Etherscan, https://etherscan.io/tokenholdings?a=0x1389388d01708118b497f59521f6943Be2541bb7.

  7. Coingecko, https://www.coingecko.com/en/coins/curve-dao-token#markets.

  8. Coingecko, https://www.coingecko.com/en/coins/convex-finance.

  9. Convex Finance, https://www.convexfinance.com/stake.

  10. Medium, https://medium.com/coinmonks/convex-curve-curve-d7e28cd6c1d9.

  11. Convex Finance, https://docs.convexfinance.com/convexfinance/general-information/voting-and-gauge-weights.

  12. Convex Finance, https://docs.convexfinance.com/convexfinance/general-information/tokenomics.

  13. Convex Finance, https://docs.convexfinance.com/convexfinance/faq/fees.

  14. Binance, https://research.binance.com/en/projects/convex-finance.

  15. Convex Finance, https://docs.convexfinance.com/convexfinance/faq/contract-addresses.

Contributors

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rlrahulkanojia

0x784aBff44f2F3bB7c46B789789f3C6552636F4F5

0 $CMK (internal)

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