Perpetuals

💡 Convex is a yield optimisation platform build ontop of Curve Finance

Type:

DeFi

Token Strength

Token Utility:

$CVX is essentially a levered ‘wrapper’ for $CRV (Curve finance). The Curve voting power that Convex accumulates is directly passed on to $CVX holders.

Demand Driver:

Demand for $CVX mainly comes from the demand for its underlying $CVX and market demand due to yield provided by protocol bribes

Value Capture:

Convex takes a 16% fee in exchange for its yield optimisation service, which is subsquently paid to stakers. $CVX is also used for bribes which is a form of yield for holders, meaning that token demand will reflect this somewhat, thus reflecting value of asset.

Value Creation:

Convex creates value by providing a yield optimisation service for LPs/holders & by also allowing protocols to direct  liquidity to their products in a more efficient way.