Curve Finance is probably one of the best known DeFi protocols on Ethereum. Most of the rewards on Curve are earned by locking up significant amounts of CRV tokens for a few months or years. The longer the lockup the higher the APY.
To circumvent this limitation Convex Finance came up with a set of different strategies that allow users to keep earning high rewards without the need to lock up their CRV. Here is how you can use them too.
Getting Started #
Before interacting with Convex Finance make sure that you have enough CRV tokens in your wallet and enough Ethereum to cover the gas fees. Once that is all set and done visit the homepage and connect your wallet by clicking on the button in the top right corner.
Once your wallet is connected click on “stake” and you will be redirected to the Convex Finance staking dashboard.
How To Stake CRV On Convex Finance? #
CRV staking is available on the staking page. Turn advanced options on to simplify the whole process since you will first need to swap CRV to cvxCRV and then stake the newly minted tokens. This way you can complete the whole process on one single page.
The protocol will also warn you if there is a better deal available. Sometimes acquiring cvxCRV on exchanges such as ParaSwap will be more profitable than swapping it directly through Convex.
On this same page you can also stake Curve LP tokens if you are providing liquidity on Curve Finance.
Simply select the appropriate pool and enter the amount of LP tokens you want to stake.
Depositing LP tokens in Convex contracts will still accumulate the native rewards on Curve but you will also be earning CVX tokens on top of those.
Lastly, on this same page users can also stake CVX tokens to earn a portion of the platform’s revenue. Rewards are distributed in cvxCRV tokens.
Staked CVX tokens can also be locked for longer periods. These locks provide higher rewards, but the tokens can’t be withdrawn until the locking period ends.
To lock your staked CVX tokens select the “Lock CVX” option at the top of the screen and enter the amount of tokens you want to lock.
After 16 weeks and 3 days your locked tokens will be available for unstaking again.
To unstake any of the tokens mentioned above, simply select the “Unstake” tab on the staking dashboard.
Convex Finance is a very useful platform for all liquidity providers on Curve. It gives them the ability to earn extra rewards on the positions they already own but it also provides a way to keep your locked CRV tokens unlocked through the cvxCRV token.
As seen in this very simple guide, Convex Finance introduces a very simple way for Curve Finance investors to earn even more in a few easy steps.