Badger’s Vested Escrow CVX (bveCVX) Vault is a managed CVX position designed to save on gas and optimize income for depositors.
Convex is a significant DeFi yield influence asset as it controls nearly half the voting power in Curve governance, making it essential for projects needing liquidity for their tokens.
Voting with CVX to generate boosted yield requires users to lock their tokens in a governance contract for 16 weeks, bveCVX automates locking of tokens, locking on a weekly cadence. Deposited tokens, as well as any unlocked tokens from a given week can be withdrawn until the next lock. 5% of the vote weight controlled by bveCVX is also used to incentivize bveCVX/CVX liquidity on Curve, providing additional but limited exit liquidity available at any time.
Unlike other Badger Vaults, bveCVX limits the times when users may withdraw their funds. Limited pre-unlock liquidity is available through this Curve Pool. Details on the timing of CVX unlocks are available on this Dune dashboard.
The vault solves a number of problems for Convex holders:
- Automated voting strategy to optimize income and gas consumption.
- Automated reward collection and processing.
Emissions & Rewards
- Underlying rewards are distributed in BADGER, bveCVX and bcvxCRV (claimable in the app).
- As approved in BIP-87:
- All underlying cvxCRV earned from underlying vlCVX will be emitted to HODLers as bcvxCRV.
- 85% of the vote weight of the vlCVX in bveCVX will vote each round for bribes, which will be sold and distributed to HODLers as:
- 75% bveCVX.
- 25% BADGER.
- As approved in BIP-85, up to half of the USD value of bveCVX will be counted as a native asset for Badger Boost, depending on the badger balance of the wallet holding the bveCVX.
- All emissions earned by bveCVX are emitted flat, not boosted.
This vault locks batches of CVX tokens for a period of 16 weeks.
Tokens are locked once a week just before 00:00 UTC on Thursday.
As tokens unlock, they are available to withdraw from 00:01 UTC on Thursday, until the next weekly locking event when they are relocked along with new deposits.
- 0% performance fee.
- 0.10% withdrawal fee.
Influence/vote handling fees:
- 5% of each vote is sold for bribes and paid to the DAO.
- 5% of each vote is sold for bribes and paid as BADGER to bveCVX/CVX LPs.
- 5% of each vote votes for WBTC/BADGER.
Convex Voting Delegation:
The Sett delegates its CVX voting power to to the Badger Voting engine. Rewards are claimed and processed through the Badger Bribes Processor.