To understand how Convex operates, it’s important to know the utility and limitations of veCRV. veCRV...Convex takes users CRV and max locks them as veCRV to be controlled by the protocol forever, boosting...(Note this doesn’t account for existing circulating CRV being locked up as veCRV).

...account that Curve still pays far more in emissions than it generates in fees or bribes distributed to veCRV...Of these fees, 50% are designated as admin fees, which go to veCRV holders....veCRV, vlCVX, cvxCRV, and cvxFXS To summarize: veCRV = Vote Escrowed CRV (max lock of 4 years) vlCVX...

AMM rewards its liquidity providers with CRV, which can be 1) sold to realize yield or 2) staked into veCRV...Now, a so-called “war” has ensued, with various protocols openly bribing votes and rewarding veCRV holders...In April 2021, Convex pioneered this bribing game with a 1% airdrop in exchange for support from veCRV...

This model allows CRV holders to lock up their tokens as vote-escrowed CRV (veCRV) for up to 4 years....The longer a user locks their CRV for, the more veCRV they receive....The more long-term oriented a user is (measured by their veCRV), the more rewards they will receive....capital in (more veCRV = more influence over emissions).

Frax Owns the Most CVX Convex retains value from the large veCRV voting power they own....To achieve the maximum boost and veCRV, one has to lock up CRV for 4 years....CVX has a shorter lockup period of 16 weeks compared to the 4-year lockup period for veCRV....Convex takes on the higher 4-year lockup time frame of veCRV on behalf of CVX holders.

Now there’d be three tokens: CRV, xCRV, and veCRV....Convex was able to run away with over 50% of veCRV, not only because it was a super novel and unique...This is in hopes of allowing veCRV holders to get liquidity if they need, and potentially incentivize...people to lock up veCRV.

Now, a so-called “war” has ensued, with various protocols openly bribing votes and rewarding veCRV holders...In April 2021, Convex pioneered this bribing game with a 1% airdrop in exchange for support from veCRV...And nearly half of all veCRV supply is owned by Convex.

Once veCRV was launched, Convex created a liquid wrapper called cvxCRV....This accelerated Convex’s accumulation of veCRV, as individual users tended to avoid the unnecessary...over 5 veCRV....Individual veCRV holders are diluted, with veCRV’s utility spread too thin by comparison.

This model allows CRV holders to lock up their tokens as vote-escrowed CRV (veCRV) for up to 4 years....The longer a user locks their CRV for, the more veCRV they receive....capital in (more veCRV = more influence over emissions)....This can be illustrated by the time-locked/held between stkAAVE, xSUSHI, and veCRV.

LPs on Curve get a boosted yield by locking CRV tokens into veCRV....In exchange, users receive cvxCRV — a liquid staking derivative of veCRV....Convex’s model has quickly helped it establish itself as the leader with over 35% of veCRV supply held...

...earned over that period. vxASTRO 2.0 to Restart ASTRO Wars vxASTRO 1.0 was initially inspired by Curve’s veCRV..., where locked veCRV has the voting power to direct emissions towards their intended pools. vxASTRO 2.0...

The average lock rate of veCRV is often a good sentiment indicator for Curve....Because veCRV is held by those with a long-term interest in the protocol, monitoring the accumulation...of veCRV and significant unlocks will often bring insight into CRV price movements.

Now, Frax has been admitted to the veCRV whitelist and will adhere to the following conditions: Lock...at least 5% of CRV farmed as veCRV Use the remaining CRV to support the cvxCRV peg or convert it directly...Each locked CVX now controls over 5.4 max locked veCRV, a ratio not seen since March 3rd, 2022.

Due to the high time-value of this locked-CRV, this translates to about 80.9M veCRV....Quite a bit of insider tokens (founder, advisor, etc.) flow to veCRV supply....Boosties allow LPs to increase their CRV rewards by 2.5x with their veCRV....We used the average daily locked Curve amount to back into a veCRV growth rate.

There are currently plans to revamp Ribbon’s token economics to a veCRV-like model where token holders...

Piece of CRV Pie Convex Finance continues to dominate the Curve wars as it owns the largest share of veCRV...Currently, each locked CVX is in control of ~5.94 veCRV....4 years to boost rewards, it is a more attractive play to lock and vote for Convex’s allocation of veCRV...

...platform that boosts yields for liquidity providers without requiring them to lock up excess capital in veCRV...Users lock up CRV in Curve governance and receive vote-escrowed CRV (veCRV) in return....Importantly, voting allows veCRV stakers to set gauge weights on a weekly basis, which decide how CRV...

...receives a proposal from Frax to create a Frax Base Pool of Frax+USDC and to whitelist Frax to stake veCRV...

...symbiotic relationship can start to form as external protocols lock up CRV in governance, receiving veCRV...As seen in the chart below, ~66% of issued CRV is now locked up as veCRV for an average time period of...An increase in veCRV% is a bullish long-term indicator for CRV....Convex and Yearn hold ~20% and ~9%, respectively, of the total veCRV supply.

Convex has been the key leader in acquiring veCRV voting power to boost its users’ Curve yield without...the user having to lock up CRV for veCRV.