CVX is the governance token of Convex Finance, the DeFi protocol that sits on top of Curve Finance and has accumulated the single largest pool of veCRV in existence. Convex allows CRV holders to deposit their tokens without locking them for 4 years: Convex locks the CRV permanently and distributes the benefits (boosted Curve yields + trading fees + CVX rewards) to depositors. By amassing over 50% of all veCRV at its peak, Convex effectively controls the direction of Curve’s entire liquidity mining program — a dynamic dubbed the Curve Wars. CVX holders (locked as vlCVX) vote on how Convex’s veCRV is deployed.
| Stat | Value |
|---|---|
| Ticker | CVX |
| Price | $1.80 |
| Market Cap | $162.23M |
| 24h Change | +1.7% |
| Circulating Supply | 89.91M CVX |
| Max Supply | 100.00M CVX |
| All-Time High | $60.09 |
| Contract (Ethereum) | 0x4e3f...9d2b |
How It Works
The Convex flywheel:
- CRV holders deposit CRV into Convex → receive cvxCRV (liquid representation)
- Convex locks the CRV as veCRV permanently → maximizing voting power
- All veCRV voting is directed by vlCVX (vote-locked CVX) holders
- Curve LPs deposit LP tokens into Convex → receive boosted CRV rewards without personally needing veCRV
Why projects bribe vlCVX holders:
DeFi protocols that need Curve liquidity (to maintain stablecoin pegs, attract TVL) must direct CRV emissions to their pools. To do this, they bribe vlCVX voters via platforms like Votium — paying them in project tokens to vote for specific Curve gauges. The bribe market created a new financial primitive: CRV gauge votes became a tradeable service.
cvxCRV vs CRV:
- CRV deposited into Convex becomes cvxCRV — liquid, tradeable on Curve’s cvxCRV/CRV pool
- cvxCRV earns 3CRV fees + airdrops + CVX rewards
- cvxCRV cannot be redeemed back for CRV — Convex locks CRV permanently
vlCVX (vote-locked CVX):
Users lock CVX for 16 weeks (minimum) to receive vlCVX, which votes on Curve gauge allocations. Each vlCVX vote in a weekly epoch directs Convex’s massive veCRV block.
Tokenomics
| Allocation | Amount | Notes |
|---|---|---|
| LP and staking incentives | 50% | Distributed as rewards |
| CVX for CRV depositors | 25% | Minted when CRV is converted to cvxCRV |
| Treasury | 9.7% | DAO-controlled |
| Investors | 9.7% | Vested |
| Employees | 5.6% | Vested |
Max supply: 100,000,000 CVX. The token is minted as users deposit CRV into Convex (up to the maximum), so supply growth correlates with Convex’s adoption.
Use Cases
- Curve gauge control — vlCVX votes determine CRV emission direction for billions in Curve TVL
- Bribe market income — vlCVX voters earn bribes from protocols wanting Curve liquidity
- Boosted Curve yields — Curve LPs using Convex receive up to 2.5× boosted CRV rewards
- cvxCRV yield — CRV depositors receive ongoing streams of 3CRV, CVX, and protocol airdrops
History
- May 2021 — Convex Finance launches and immediately begins accumulating veCRV at a historically unprecedented rate
- 2021 — The “Curve Wars” term coined as Frax Finance, Terra/UST, MIM/Abracadabra, and others compete to buy CVX and direct Curve emissions
- Late 2021 — Convex surpasses 50% of all veCRV, making it the single most influential actor in Curve governance
- 2022 — Votium bribe markets formalize the CVX vote economy; protocols pay hundreds of millions in token bribes annually
- Jun 2023 — Curve exploit (reentrancy via Vyper) creates volatility; Convex systems were not directly affected but correlated exposure lowered both CRV and CVX prices
- 2023–2024 — Convex expands to support Prisma Finance (PRISMA), a fork of Liquity — showing the “Convex model” generalizing beyond Curve
Common Misconceptions
“Convex controls Curve governance.” Convex holds enormous veCRV, but vlCVX holders (the CVX lockers) vote on how it’s used. Convex itself is governed by CVX holders, not by a central team. It’s a meta-governance layer, not a single actor.
“cvxCRV is the same as CRV.” cvxCRV represents permanently locked CRV — there’s no redemption mechanism. The only way to exit cvxCRV is to sell it on the open market, where it sometimes trades at a discount to CRV.