January 2023 Update: cvxCRV Staking Changes

Convex Finance for Curve.fi allows users to interact with the protocol from multiple fronts: by providing liquidity on Curve and staking LP tokens, staking and/or locking CVX tokens and participating in governance and gauge votes, or simply staking cvxCRV and receiving a share of LPs earned rewards. There have been multiple updates for LPs and CVX holders/lockers, but so far, there have been no major changes to cvxCRV dynamics since launch.

From the docs:

A new wrapper contract for staked cvxCRV is coming soon. This new wrapper contract will enable several enhancements to existing cvxCRV staking:

• Ability to directly add additional incentives to cvxCRV staking.
• Adjustable rewards, user can choose to receive only CRV and CVX, only 3CRV, or any user-adjustable weighted mix there of.
• ERC-20 transferable staked cvxCRV

Fee Structure Changes

With these enhancements in mind, Convex will be posting a proposal soon to change the platform fees, with the goal of utilizing the new functionality of the wrapper. At the protocol level, Convex hopes to be able to divert two percent of platform fees to acquire and stake existing cvxCRV toward the new wrapper contract. The cvxCRV acquired and staked this way will add to the to wrapper’s overall rewards, while removing cvxCRV from circulation. Proposed fee changes will be as follows:

Note: “Vote-locked CVX” would continue to get “CVX Stakers” fees

Incentivizing cvxCRV Stakers

In addition to the fee changes to acquire and remove cvxCRV from circulation and using said cvxCRV to boost wrapper rewards, Convex will also move some of the existing CVX emissions to this wrapper to provide extra incentive to directly stake cvxCRV. Additional cvxCRV staking mechanics are also possible in the future.

cvxCRV/CRV Liquidity Pool

In the near future, Convex will create and deploy a new Factory pool for cvxCRV/CRV. This move will enable additional functionality by using the latest version of factory pools, primarily, an internal price oracle. Convex will re-direct any incentives for that pool to the new one once fully launched.

As of now, the cvxCRV/CRV pools remains Factory Pool 22, here. Convex will provide further info on the move when appropriate. Keep an eye out on Twitter and in the Discord!