Strategies rely on external protocols and come with their own risks. Users should carefully evaulate the strategy design and the risks associated with any protocol that a strategy interacts with. While strategies are designed to be robust and secure, users may still be exposed to the risks of external protocols.
Underlying (asset to farm): ETH
Reward tokens: CVX, CRV
Support other reward tokens: True
Description: This strategy provides single sided liquidity to a given Curve ETH pool, then stakes the Curve LP Token in Convex. The strategy receives CRV and CVX rewards and sells these for ETH.
Here is an overview of which contracts this strategy interacts with and how each contract is used (on a high level).
ERC20 tokens used:¶
- CVX: 0x4e3FBD56CD56c3e72c1403e103b45Db9da5B9D2B
Native token of Convex
- CRV: 0xD533a949740bb3306d119CC777fa900bA034cd52
Governance token of Curve
- WETH: 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2
Wrapped ETH (ERC20 compatible)
- Curve LP Token: [set per strategy]
Minted by depositing into Curve Pool
Deposited in Convex Booster contract
Burned to redeem underlying
- Uniswap: 0x7a250d5630B4cF539739dF2C5dAcb4c659F2488D
Swap coin X for Y if AMM is set as default
- SushiSwap: 0xd9e1cE17f2641f24aE83637ab66a2cca9C378B9F
Swap coin X for Y if AMM is set as default
- Curve CVX/ETH Pool: 0xB576491F1E6e5E62f1d8F26062Ee822B40B0E0d4
Swap CVX rewards for WETH
- Curve CRV/ETH Pool: 0x8301AE4fc9c624d1D396cbDAa1ed877821D7C511
Swap CRV rewards for WETH
Curve contracts used:¶
- Curve Pool: [set per strategy]
Deposit ETH to mint LP Token
Burn LP Token to redeem ETH
Convex contracts used:¶
- Booster: 0xF403C135812408BFbE8713b5A23a04b3D48AAE31
Deposit and Withdraw Curve LP Token
- Rewards: [set per strategy]
Stake Convex LP Token to earn CRV, CVX and other rewards
Convex Finance is a protocol built around Curve, which essentially allows Curve LPs to receive a higher boost on CRV rewards by staking Curve LP tokens on Convex and not directly on Curve. Furthermore, CRV holders can lock their CRV on Convex for veCRV and in exchange receive cvxCRV, which is essentially tokenized veCRV. Note that once CRV is deposited on Convex, it cannot be withdrawn. However, Convex incentivizes LPs of Sushiswap pools for CRV-cvxCRV pools, by rewarding these LPs with CVX tokens. Additionally, CVX rewards get minted on a per rata basis as CRV rewards are received by Convex LPs. A platform fee is charged by Convex on CRV rewards, which goes in part to users that lock CRV for cvxCRV (and stake cvxCRV), as well as CVX stakers. Stakers of cvxCRV also receive 3CRV rewards, which are the governance fees paid by Curve on a weekly basis.
Overall there are three roles a user can have on Convex to earn rewards:
Liquidity provider (stake Curve LP tokens):
Claim CRV rewards from Convex
Claim CVX rewards from Convex
CRV depositor (lock CRV for cvxCRV; stake cvxCRV):
Receive 3CRV (Curve trading fees)
Receive CRV (Convex platform fees)
Receive cvxCRV (platform fees)
The ETH-CVX strategy has the following core components.
strategy.deposit(), all available ETH held by the strategy will be provided as single sided liquidity into the Curve Pool. The Curve LP Token will then be deposited into the Convex
Booster contract (details here). Finally the Convex LP Token is staked for CRV and CVX rewards in the Convex
The Convex reward pools all implement the
IRewardStaking interface. You can find the implementation of these reward pools here. Rewards are claimed by calling the
getReward() method on the
There may be a situation whereby a Curve pool is incentivized, i.e. LPs of the pools receive additional reward tokens for depositing funds. These extra rewards would be also be claimed through Convex on
getReward(). In order to be able to process these on the strategy side, the strategy contains a list of all the possible
rewardTokens in which it may hold funds. New tokens can be added to this list by the admin. When funds are liquidated, the reward tokens are liquidated for the underlying.
strategy.harvest() is called (by the vault), any CRV that is earned will be sold off for ETH. All CVX rewards earned by the strategy are first taxed, where the taxed amount goes to the Mero CVX reserve and gets vote locked on Convex. The net CVX rewards earned are all sold off for ETH.
harvest() does not automatically redeposit underlying into Convex (reduce gas costs).
The balance of the strategy includes idle ETH, idle Curve LP Tokens and staked Curve LP Tokens. Any unclaimed rewards are not included in the balance. The balance function uses
get_virtual_price which is a view of the Curve Pools. This function returns the price of the LP Token relative to the assets of the pool. This may differ from the actual amount that can be withdrawn from the pool at any point in time, as if the pool is imblanaced, then the withdrawable amount may be less than or greater than the virtual price. This is in place as a security measure to protect against attacks that intentionally cause imbalance in curve pools to manipulate the balance of a strategy.