In the last month Convex finance formed the highest high: $39.73 and the lowest at $20.20, is Convex finance safe?
Ranking at $61 on Coinmarketcap, Convex Finance is on 37,509 watchlists with a market cap at the time of writing of $1,647,824,474. Circulating supply 58,205,586.68 CVX from 100 million maximum supply with a total supply of 88,748,341.
The largest exchange in CVX transactions is Binance. At the time of writing holds a transaction volume of $4,246,939 which in percent reaches 23.47%. CVX is the ticker symbol of Convex Finance, which powers Convex Finance.
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What is Convex Finance?
Convex Finance was built to simplify staking on Curve. fi, as well as the CRV locking system with the help of the native fee-generating token, CVX. Curve Finance itself is a decentralized exchange with a total locked value of USD 8.76 billion.
CVX has incentivized liquidity mining to bootstrap liquidity for CVX and cxvCRV tokens. Liquidity providers for the following Sushiswap pools will be able to store their LP tokens on Convex and receive CVX tokens as rewards.
CVX Coin is a utility token used to receive a share of the Convex platform fees. To get Convex fees, users need to install CVX to receive cvxCRV tokens. The more platform revenue Convex earns, the more value it distributes to cvxCRV holders.
Why Convex finance?
Convex Finance is a DeFi farmer, who saw the need for a platform that would allow users to receive the maximum increase from CRV in a simplified way.
This allows users to collect their actual rewards directly without automatic sales. Convex finance also believes CRV stakeholders should be rewarded more as they have essentially been mining together with the Liquidity Providers.
CVX intends to change this with Convex by charging lower performance fees, returning fees to CRV shareholders and CVX token holders, and distributing rewards directly.
How does Convex Finance work?
Convex Finance CVX is often referred to as a CRV booster. By using CVX, Curve. fi liquidity allows you to get CRV to increase without locking your CRV.
Convex Finance is designed for CRV holders within the Curve. fi network. With Convex, staking CRV, users will receive trading fees as well as a share of the increased CRV received by liquidity providers.
This will strike a balance between liquidity providers and CRV stakeholders as well as CVX shareholders. CVX shareholders have no withdrawal fees and minimal fees for paying for gas through Convex.
It also allows liquidity providers and stakeholders to receive liquidity mining rewards in the form of CVX.
Who founded Convex Finance?
Convex finance is associated with Curve Finance which was discovered by Michael Egorov. Apart from being the founder of Curve Finance, Egorov is also the founder of NuCypher and LoanCoin. He is a Russian graduate of the Moscow Institute of Physics and Technology.
Tokenomics
Convex Finance has the ticker symbol CVX, which is printed prorated for every CRV token claimed by Curve LP on Convex with a CVX/CRV mint ratio reduced every 100k CVX. The maximum supply only made 100 million CVX.
Token distribution of CVX tokens as described in the Convex Finance document, for investors 3.3%, Treasury 9.7%, Convex team, 10%, veCRV voters 1.0%, veCRV holders 1..0%, Liquidity mining 25%, and Curve LP rewards 50%.
Currently, the supply circulation is 58% of CVX tokens amounting to 58,219.030.33 CVX.
How to stake Convex Finance
Staking Convex Finance is converting CRV into tokenized cvxCRV. When a user makes a CRV deposit to the Convex platform, it becomes a veCRv which can then be tokenized to cvxCRV at a 1:1 ratio.
Staking Convex Finance means risking cvxCRV which will later receive a reward from veCRV. When the user converts CRV to cvxCRV. he can’t convert it into a CRV. If the user wants to convert cvxCRV to CRV it is only possible through the secondary market with varying values.
Start staking CVX by connecting your wallet to Convex at https://www.convexfinance.com/stake. If you have a Metamask wallet. it will make it easy to connect with Convex Finance. and start staking. You need a CRV token to convert to cvxCRV and start staking.
You just need to select the available LP or liquidity pool in the list and enter the amount of cvxCRV for staking. Users can also withdraw LP tokens at any time by clicking the Withdraw button.
Is Convex Finance on Polygon?
Convex Finance CVX also uses the Polygon blockchain with contract address 0x4257ea7637c355f81616050cbb6a9b709fd72683.
In the Polygon blockchain CVX traded on the top two Decentralized exchanges SushiSwap and UniSwap. Convex Finance Polygon’s price its all-time high at $49.06 according to Nomics on 1/4/2022.
Convex Finance Polygon Trading volume at the time of writing is only $334 with the first trade in August 2021.
Mainly Convex Finance uses the Ethereum blockchain as Curve FINance which is an automatic market maker that also uses the Ethereum Blockchain. The Convex finance contract address on the Ethereum blockchain is 0x4e3fbd56cd56c3e72c1403e103b45db9da5b9d2b.
Besides using Blockchain Ethereum and Polygon, Convex Finance also listed a token on the Solana blockchain with the contract address BLvmrccP4g1B6SpiVvmQrLUDya1nZ4B2D1nm9jzKF7sz.
How to buy Convex Finance?
Some of the steps that need to be considered when buying Convex Finance are:
- Find and compare exchanges that support CVX. Since each exchange has different policies regarding trading fees, security, and payment methods. You can compare exchanges according to your criteria.
- Next, you register an account on the exchange. Centralized exchanges usually users need to register first before being able to use the trading platform. Users may need verification by sending identity card documents and address verification.
- The third step is funding the account. Users can fund accounts with supported payment methods, be it for the purchase of cryptocurrencies paired with CVX, some support credit cards, wire transfers with SWIFT, or with cryptocurrencies.
- Step four buy CVX. through the trading platform, you can find the CVX market by typing in the search box to make it easier to find CVX.
You should look at CVX pairs, for example, if the exchange supports BTC/CVX pairs. Then before buying CVX, you must have BTC. If not you need to buy Bitcoin either on the exchange if available or send some Bitcoin from your crypto wallet to the address selected exchange wallet.
Storing CVX safely
You may want to keep CVX long-term in your wallet because you think in the next few years the price of CVX may go up.
To store crypto assets, not only CVX but all crypto assets, it is recommended to use a cold wallet that is not directly connected to the internet. An example is the Ledger wallet, either Ledger Nano S or Ledger Nano X.
Where to buy Convex Finance?
Here are some of the exchanges that support CVX from which users buy Convex Finance.
Binance
Binance is still the biggest exchange in 2022. Users can buy CVX with USDT, using USDT is less risky as it is a $1 pegged stablecoin. To fund an account Binance supports payments by credit card or bank transfer.
Kucoin
Kucoin is the fifth largest exchange with a market cap of over $2.5 billion in open crypto trading in September 2017 and is located in Seychelles.
Users can find CVX coins paired with USDT, meaning users need to convert their money or crypto assets to USDT if they want to buy CVX. With a tiered fee system, it is possible to get a low fee if the purchase volume is large.
FTX
FTX is a cryptocurrency derivatives exchange that supports margin trading up to 1:10 leverage. This exchange is also one of the top exchanges judging by several factors such as web traffic, and transaction volume which is currently ranked #3 on Coinmarketcap.
Users can find CVX in Convex Perpetual Futures. FTX also uses a tiered fee system, where the larger the purchase volume, the lower the fee.
OKx
OKX can be an alternative to buying CVX in pairs with USDT. The exchange has also become one of the top 50 global exchanges, it is currently ranked 16th.
BitStamp
BitStamp also provides access to CVX trading with USD. This exchange is still the top cryptocurrency exchange at $11 ranking slightly better than OKx.
For fees, Bitstamp also has a tiered system, the larger the purchase volume, the lower the fee will be charged.
Bitget
Bitget is an exchange headquartered in Singapore, founded in 2018, daily volume is around $200 million. It also provides CVX for trading on an OTC basis in pairs with USDT.
BingX
BingX transaction volume at the time of writing stood at $362,646,329.72. The exchange has been operating since 2018 with digital asset access and derivatives trading. Supports CVX in the platform.
Uphold
Uphold exchange is a United States-based exchange that operates in 184 countries with 30 currencies. Established in 2015 providing more than 44+ including CVX.
Is Convex Finance a good investment?
CVX’s historical price formed an all-time high in January 2022 at $62.69, with an all-time low of $1.88 in July 2021.
If you analyze from the lowest price to the highest price, CVX experiences drastic price changes reaching thousands of percent within a year. The total value locked at the time of writing has reached $11,887,773,739. With the current price in a downtrend at $26.25.
Total Value Locked reflects the number of tokens locked for staking. Since Convex finance is a token booster for CRV, the two are fundamentally correlated.
By following the latest updates on the Defi Curve Finance project, it is possible to obtain an estimate of the future value of CVX.
Apart from this analysis, one of the well-known forecasting sites, Wallet Investor, recommends that CVX is a good investment in the future. Even estimates the price to reach $ 199 in the next five years.
However, crypto assets are very volatile which carries its risks, in which high volatility allows the price of CVX to rise or fall drastically.
Is Convex Finance safe?
Although Convex finance is built with security in mind, however, interacting with Defi using smart contracts has its risk vulnerabilities. System failures that may occur due to bugs and errors allow funds to be lost.
To minimize risk vulnerabilities, Convex finance used an external audit by MixBytes before launch.
Besides the risk vulnerabilities in Convex finance itself, there are also possible risks from Curve finance because CVX was created to be a CRV booster. Where the two are related.
Community
Convex Finance supports the growth of the platform through Twitter, Telegram, Discord, and Blog on the medium.
On the social media community, Twitter has 42.7,000 followers and an account created as of March 2021. Important information regarding CVX is posted in a tweet on the page.
The Discord community has 9,573 members at the time of writing with an average of over a thousand active members.
While the Telegram channel has 3,482 members with an average of hundreds of online members. And on the Medium blog, Convex finance has 1.2k followers.
Convex Finance price prediction
After forming an all-time high in January 2021, what is the forecast for Convex Finance in the future? Here are some CVX forecasts from several forecasting sites.
Digitalcoinprice. CVX price trend is up gradually starting 2022 with a forecast of $36.02, up in 2023 to $42.46, 2024 to $42.78, 2025 $58.74, 2026 down to $49.92, 2027 to $69.11, 2028 to $90.38, 2029 to $111.52, 2030 to $121.89, and 2031 to $144.
Tech News-Leader. CVX price in the next year 2023 reached $37.03 and rose five years later in 2027 to a price level of $112.49, and in 2032 reached $707.81
Investors Wallet. CVX is an awesome investment asset, with an estimated price tag of $61,255 in 2023, and $199,781 in 2027.
Price Prediction. CVX is estimated to increase in price gradually from 2022 to an average price of $26.39, 2023 to $38.35, 2024 to $55.72, 2025 to $82.55, 2026 to $114.26, 2027 to $166.02, 2028 to $236.57, 2029 to $367.86, 2030 to $534.47, and 2031 to $ 784.21.
Final thought
One thing that comes as a surprise after the launch of Convex Finance, in just two weeks it has reached a market capitalization of up to $1 billion in Total Value Locked. The rapid growth of Convex finance reflects a good level of market adoption which has implications for the price of CVX itself.
It is not surprising, that within a year the price change from lowest to highest reached an ROI of up to 1200%. Even though the current fluctuation of VCX is still in the range below $30. But some forecasting sites predict prices will rise from year to year.
Note: This article is for informational purposes only and is not investment advice or solicitation. Forex, crypto CFDs are risky assets. Each investor is responsible for their investment.
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