---
# System prepended metadata

title: Convex & Velo

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# Convex & Velo

## Tokenomics
![](https://hackmd.io/_uploads/BJj4PSxF9.png)

### Ethereum
1. DF reward distribution includes three paths,
	* **velDF** staking, 84%
	* treasury, 15%
	* incentive, 1%
	Available to claim DF（1 week）: Loopfi Reward(Total DF Locker) * veDF 4years APY * 84% * (Users pDF Staked / Total pDF Staked)
3. VELO issue - liquidity mining
	* **velDF/DF** staking
	* **VELO/USX** staking
	* **VELO** staking
### Arbitrum
1. DF reward distribution includes two paths,
	* **velDF** staking, 99.9%
	* incentive, 0.1%
	Available to claim DF（1 week）: Loopfi Reward(Total DF Locker) * veDF 4years APY * 99.9%% * (Users pDF Staked / Total pDF Staked)
2. VELO issue - liquidity mining
	* **velDF** staking (extra rewards)
	* **velDF/DF** staking
	* **VELO/USX** staking
	* **VELO** staking

### VELO token
* total supply: 1,000,000,000
* reward mint: 50% (serve for multi-chains and multi-protocols)
* liquidity mining: 20% (serve for multi-chains and multi-protocols)
* team: 15%
* treasuy: 10%
* airdrop: 5%


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### About Name
velofinance.org
velofinance.io
boosterfinance.co
boosterfinance.io
[onestep.network](http://onestep.network/)

### Convex Contracts

| Name           | Contract                                                                                                              |
| -------------- | --------------------------------------------------------------------------------------------------------------------- |
| Crv Depositor  | [0x8014595F2AB54cD7c604B00E9fb932176fDc86Ae](https://etherscan.io/address/0x8014595F2AB54cD7c604B00E9fb932176fDc86Ae) |
| Crv Staker     | [0x989aeb4d175e16225e39e87d0d97a3360524ad80](https://etherscan.io/address/0x989aeb4d175e16225e39e87d0d97a3360524ad80) |
| cvxCRV         | [0x62b9c7356a2dc64a1969e19c23e4f579f9810aa7](https://etherscan.io/address/0x62b9c7356a2dc64a1969e19c23e4f579f9810aa7) |
| cvxCRV Rewards | [0x3Fe65692bfCD0e6CF84cB1E7d24108E434A7587e](https://etherscan.io/address/0x3Fe65692bfCD0e6CF84cB1E7d24108E434A7587e) |
| CVX Rewards    | [0xCF50b810E57Ac33B91dCF525C6ddd9881B139332](https://etherscan.io/address/0xCF50b810E57Ac33B91dCF525C6ddd9881B139332) |


Note:
* *Crv Staker is the veCrv depositor, owns veCRV balance.*
* *cvxCRV token is ERC20 standand token with Mint/Burn interface.*

---
### Protocol Draft
#### Why Velo
Velo, velofinance.org, to help DF stakers earn high staking reward without sacrificing DF liquidity.

#### for stakers on Ethereum
![](https://hackmd.io/_uploads/rk4aAW775.jpg)

#### for stakers on BSC
![](https://hackmd.io/_uploads/Bk2EkM7Xq.jpg)

#### for stakers on non-BSC chain
`bridge DF to BSC and stake`

---
### Features

#### Roles on Mainnet
> as DF depositor
- [x] receive 1:1 minted velDF
* *if trigger NOT locking to veDF*
  - [x] charge pro rata rate of depositing amount as fee
* *if trigger locking to veDF*
	- [x] receive all collected fee in DF as gas compensation

> as veDF voter
* multiple veDF stakers with depositing DF capacity
* delegate voting power out

> as velDF staker
- [x] receive veDF staking reward in DF
- [x] receive VELO pro-rata to DF
- [x] receive portion of the performance fees in velDF

> as reward claimer
* receive pro-rata reward in DF as triggering clam on behalf of side-chain agent

> as velDF/DF or VELO/DF or VELO/USX staker
- [x] receive fix-rate reward in VELO
- [x] receive portion of the performance fees in velDF

#### Side-chain Agent (on Mainnet)
* receive bridging DF from side chain
* external interface to deposit DF(pro-rata fee for caller)
* receive and bridge rewardx to side chain

#### Performance Fees
There is a pro-rata fee rate on all DF revenue generated by veDF staking
- [x] goes to velDF staker
- [x] goes to LP staker, including but not limited to velDF/DF,  VELO/DF and VELO/USX
- [x] goes to VELO treasury

#### Side Chain (BSC for example)
> as DF depositor(be different than on Mainnet)
* *if trigger NOT bridging DF to Mainnet*
	* charge pro rata rate of depositing amount as fee
* *if trigger bridging DF to Mainnet*
	* receive all collected fee in DF as gas compensation

##### Currently the cross chain bridge does not support calldata
- Optimism DF bridge 
https://optimistic.etherscan.io/address/0x4200000000000000000000000000000000000010#code
- Aribtrum DF bridge
https://arbiscan.io/address/0x096760f208390250649e3e8763348e783aef5562#code
	

---
### Sketch
![](https://i.imgur.com/hoY80xF.jpg)
![](https://hackmd.io/_uploads/ryP5hsW7c.png)


### Contracts on-chain
https://docs.convexfinance.com/convexfinance/faq/contract-addresses

### Integration
https://docs.convexfinance.com/convexfinanceintegration/

Overview
----
Introducing Convex Finance, a platform built to boost rewards for CRV stakers and liquidity providers alike, all in a simple and easy to use interface. Convex aims to simplify staking on Curve, as well as the CRV-locking system with the help of its native fee-earning token: CVX.


If you’ve ever been a Curve LP, you know it is somewhat non-trivial to maximize your boost by depositing/maintaining your veCRV balance. If you’ve never been a Curve LP, it may be intimidating to do so without being a DeFi power user. Convex aims to make this process easy and bring the CRV boost ecosystem to everyone.

Liquidity providers earn trading fees and claim boosted CRV without locking CRV themselves.
Convex has no deposit or withdrawal fees, and a low performance fee, which is distributed to CRV stakers and CVX token holders.


### If you are a Curve liquidity provider:
- Deposit Curve LP tokens to the Convex system; they are automatically staked in the curve gauge with boosted reward rates.
- Gain CRV rewards, as well as extra incentive tokens (ex. SNX, PNT, BOR, LDO, etc)
Rewards are periodically claimed from the gauge and moved to a synthetix inspired reward contract, with rewards tail emission of seven days.
- Receive the Convex platform’s native token(CVX) pro rata for each CRV you receive.
- Add or remove liquidity at any time with no deposit or withdrawal fees.

![](https://i.imgur.com/pmhOQea.png)

Convex allows liquidity providers to earn trading fees and claim boosted CRV without locking CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort:
* Earn claimable CRV with a high boost without locking any CRV
* Earn CVX rewards
* Zero deposit and withdraw fees
* Zero fees on extra incentive tokens (SNX, etc)

### If you are a CRV staker:
- Deposit CRV in the platform. This CRV is locked forever. Receive cvxCRV token.
- Deposit cvxCRV in the reward contract. (can be withdrawn at anytime)
- Receive a share of boosted CRV.
- All normal veCRV rewards (trading fees on Curve) are also distributed.
- Can exchange cvxCRV for CRV at any time using the incentivized cvxCRV/CRV liquidity pool.
- Receive the Convex platform’s native token (CVX) pro rata for each CRV you receive.

![](https://i.imgur.com/fiRBq0a.png)

Convex rewards CRV stakers with a share of the boosted CRV on the Convex platform making it an ideal destination for those who wish to stake CRV whilst remaining liquid:

* Earn a share of the Convex platform fees in CRV
* Earn trading fees from the Curve platform (3CRV)
* Receive liquid cvxCRV allowing anyone to exit their staked CRV position
* Receive CVX rewards
* Claim veCRV aidrops such as EPS (airdrop distribution will be done to the best of our abilities. Will require cooperation from the other platforms)

### If you are a CVX staker:
- Deposit CVX on the platform. (can be withdrawn at anytime)
- Receive a portion of the platform fees in cvxCRV

![](https://i.imgur.com/T4GisLg.png)

Convex Finance Launch Airdrop
----
Convex Finance will airdrop a portion of CVX tokens to all current veCRV holders. Additionally, all addresses that vote to whitelist Convex in a subsequent Curve.fi governance vote will receive additional CVX tokens.

**Incentivized Liquidity Mining**
In order to bootstrap liquidity for both CVX and cxvCRV tokens, liquidity providers for the following Sushiswap pools will be able to deposit their LP tokens on Convex, and receive CVX tokens as rewards.
*cvxCRV/CRV*
*CVX/ETH*


Motivations and Goals
----
As DeFi farmers ourselves we saw a need for a platform that allowed users to receive the max boost possible from CRV in a simplified manner and allow users to collect their actual rewards directly without auto-selling. We also believe CRV stakers should be rewarded more as they are, in effect, mining together with Liquidity Providers. We intend to change that with Convex by charging a lower performance fee, returning fees back to the CRV stakers and CVX token holders, and distributing rewards directly.


Tokenomics
----
### cvxCRV (Tokenized veCRV)
- Tokenized deposits, minted 1:1 for each CRV locked in the platform.
- Stake to receive platform fees(CRV), CVX, and veCRV rewards(3Crv).


### Convex Token (CVX)
* Stake to receive a share of platform fees as cvxCRV.
* In the future, CVX will be used for voting, such as gauge weights.
* CVX is minted pro-rata for each CRV token claimed by Curve LP's on Convex. 
    * CVX / CRV mint ratio reduces every 100k CVX
    * CVX Mint formula/code [here](https://docs.convexfinance.com/convexfinanceintegration/cvx-minting)
![](https://i.imgur.com/wsljhIi.png)
- Max Supply: 100 million
- 50% Curve LP rewards
    Rewarded pro-rata for CRV received on Convex
- 25% Liquidity mining
    Distributed over 4 years. Incentives for CVX/ETH and cvxCRV/CRV pools
- 9.7% Treasury
    Vested over 1 year. Used for future incentives or other community driven activities
- 1% VeCrv holders
    Instantly claimable airdrop
- 1% VeCrv holders who vote to whitelist Convex
    Instantly claimable airdrop
- 3.3% Investors
    Vested over 1 year. 100% of investment funds used to pre-seed boost and locked forever(no cvxCRV minted).
- 10% Convex Team
    Vested over 1 year

Other Information
----
Treasury will be held by a multisig and used for future incentives and/or rewards for community driven activities.

Curve LP Farming rewards are minted for each CRV claimed at a determined ratio. This ratio decreases as total supply increases.

Stake CVX in a reward contract to receive platform fees in cvxCRV.

Starting Liquidity Mining pools will be cvxCRV/CRV and CVX/ETH.
