August Update + CVX Voting!

This post was originally published here

Plenty has happened since we launched Convex Finance in May, and we wanted to give a comprehensive update on everything that’s changed and what’s coming next. Additionally, we’ll provide some insight into the upcoming CVX token voting system and how that will work.

From Defi Pulse
convexfinance.com/claim

Protocol Collaborations

Frax Finance

Frax Finance has deployed a portion of their treasury to the FRAX pool on Convex Finance. They’ve committed to holding/staking their earned cvxCRV and CVX rewards for the long term, and work to align incentives for both protocols. We’re excited to have Frax Finance engaged in the success of Convex Finance!

BadgerDao

The team at BadgerDao deployed new vaults purpose built for Convex Finance. BadgerDao’s Helper Vaults can be used to auto-compound your staked cvxCRV and CVX earnings. Users can also choose to use any of BadgerDao’s 8 other setts that take advantage of Convex rewards (CRV, CVX), as well as BADGER tokens.

Other Integrations

OlympusDao

With OlympusDao’s passing of OIP-14, excess treasury funds (FRAX tokens) will be deployed into Convex Finance’s liquidity pools to start earning trading fees, CVX, and CRV. OlympusDao hopes to deploy more capital from their treasury to Convex liquidity pools in the future, and maintain a CVX position.

What’s Next? Well, voting!

*drumroll*

biswap

Voting with your CVX Tokens

At launch, we expressed our intent to allow CVX holders to dictate how Convex Finance used its significant (and growing) veCRV voting power in the weekly Curve.Fi gauge weight votes. The aim is to decentralize the protocol and give the token holders a say in how Curve.Fi rewards are distributed amongst the different liquidity pools. We also plan to hold votes for any Curve.fi governance proposals that arise.

We’re glad to say we are in the final stages of releasing the voting system. We anticipate launching soon, and we’ll keep the community updated with the latest regarding an official launch time.

For now, we want to cover some basics on how the voting system will work in practice:

A more in depth explanation and rules can be found on our documentation page here.

Locking CVX Tokens

Convex Finance has opted to require a time lock on CVX tokens that wish to participate in any platform votes. This helps ensure the most committed and engaged users are the ones helping shape the votes regarding Convex Finance’s gauge weights and Curve.fi governance votes.

You will need to lock your CVX tokens in order to participate in any votes.

To further incentivize users to participate in platform votes, CVX tokens locked in the voting contract will still receive the 5% platform fee as if their tokens were staked, as well as an additional 1% fee for locking their tokens.

Boost Mechanic

CVX tokens can be ‘spent’ to receive a multiplier on your locked CVX rewards, and also increase your weight of your CVX token voting power. These are spent while depositing and only applied to the newly deposited tokens.

‘Spent’ CVX tokens will be directed to the treasury. These funds will remain in the treasury to be used for future incentives.

At launch, the boost mechanic will be disabled. It will be up to the community as to when this should be turned on and with what parameters.

When?

We are working hard to finalize the voting system. We want CVX holders to have their say as soon as possible to further decentralize Convex Finance. We’ll announce when it’s ready, but in the meantime, you can follow along in our chats and check updates on our Github.

Design work in progress

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