What does Convex Finance do?
Convex Finance (CRYPTO:CVX) stands as a prominent decentralized finance (DeFi) protocol operating within the Ethereum blockchain ecosystem. Its primary function is to enhance the rewards users earn on their Curve Liquidity Provider (LP) tokens by utilizing the Curve Finance protocol. Users deposit their Curve LP tokens into Convex Finance, which subsequently stakes these assets on Curve Finance. The rewards, referred to as "boosted rewards," are generated through the CVX token, a native token of Convex Finance. CVX token holders possess voting power, enabling them to influence the development of Convex Finance and the broader Curve ecosystem.
As part of their ongoing projects, Convex Finance is actively working on a mobile app, exploring integration opportunities with other DeFi protocols, and contemplating expansion to different blockchains. Their objectives align with making DeFi participation more accessible and profitable for users, enhancing decentralized exchange liquidity, and supporting the broader development of the Curve ecosystem.
Convex Finance's contributions to the DeFi landscape are noteworthy, as it plays a pivotal role in improving Curve Finance and DeFi in general. The platform's focus on boosting rewards and collaborating with other DeFi projects underscores its commitment to enhancing the decentralized financial ecosystem.