This proposal is to whitelist Convex Finance (link) in Curve’s “SmartWalletWhitelist” contract allowing Convex Finance to participate in Curve governance, lock CRV, and provide boosted rewards to Curve LPs without auto-selling.
You can read about Convex here
- Convex Finance provides a boost to Curve LPs without auto selling rewards while taking a small performance fee on only CRV itself.
- Convex Finance provides more rewards to CRV stakers by passing performance fees to CRV stakers along with their normal 3CRV rewards untouched.
- Convex Finance hopes to simplify the Curve boosting system and provide more incentives to locking CRV.
CRV locked in Convex will be locked forever. A tokenized(cvxCRV) version will allow users to trade their cvxCRV back to CRV at any time through incentivized pools. Majority of Convex performance fees will be given to cvxCRV holders as normal CRV(10%) with most of the rest being locked and tokenized as cvxCRV and given to CVX stakers(4.5%). There will also be a small 0.5% fee for gas incentives for claiming rewards from gauges and keeping the system moving.
As DeFi farmers ourselves, we saw a need for a platform that allowed users to receive the max boost possible from CRV in a simplified manner. Convex Finance aims to enable more users to be onboarded into the Curve ecosystem by making it easy and painless for users to receive better yields on their CRV and Curve LP tokens compared to what the average user might receive on their own.
By doing so, Convex Finance will be able to lock CRV and thus receive boosted rewards, vote in Curve governance, and receive veCrv rewards.
- Convex Finance has completed its audit with MixBytes()
- Convex Finance is supported by the Curve team.