Vote Locked CVX (bveCVX)
This page contains a full tutorial on how to deposit in the Vote Locked CVX vault and important information regarding the vault.
Last updated
This page contains a full tutorial on how to deposit in the Vote Locked CVX vault and important information regarding the vault.
Last updated
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. Since launch, bveCVX has amassed around 3% of the outstanding CVX vote weight, and growing.
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 Deposited tokens, as well as any unlocked tokens from a given week can be withdrawn until the next lock. 5% of the vote weight controlled by bveCVX is also used to incentivize bveCVX/CVX liquidity on Curve, providing additional but limited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.
The vault solves a number of problems for Convex holders:
Automated voting strategy to optimize income and gas consumption.
Automated reward collection and processing.
Partial liquidity on locked CVX through an incentivized Curve pool.
Autocompounding of vlCVX underlying cvxCRV rewards via our bcvxCRV helper vault.
This vault locks 100% of deposited Convex tokens for rolling periods of 16 weeks. Badger will use locked Convex to vote for bribes, sell them, and emit them back to HODLers in the form of BADGER and bveCVX less fees.
Important Note: Unlike other Badger Setts, this Vault limits the times when users may withdraw their funds. Please carefully read the sections on Locking and Unlocking.
How to Deposit
This Sett accepts deposits of CVX (Convex Finance governance token).
Locking:
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.
The unlock schedule of bveCVX can be found HERE.
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.
Vault Fees:
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.
Exit Liquidity:
As described above, 5% of the vote goes to supporting liquidity for bveCVX through incentivising the bveCVX/CVX sett. As a result, even when withdraws are not available, bveCVX can be sold and bought on Curve.
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.
