What is Convex Finance?

Convex Finance is a decentralized finance (DeFi) platform launched in May 2021, designed to optimize returns for users of Curve Finance, a protocol focused on stablecoin exchanges. It allows Curve liquidity providers and CRV token holders to earn increased rewards by staking their assets without needing to lock their CRV tokens. By aggregating user stakes, Convex is able to achieve higher reward efficiencies and attract a substantial portion of liquidity from Curve, thereby bolstering its position in the DeFi market. The platform's operations are spearheaded by a team of developers who have chosen to remain anonymous, a not uncommon practice in the cryptocurrency sector that focuses attention on the platform's functionality rather than on its creators.

The native token of the platform, CVX, serves multiple purposes within the Convex ecosystem. It is primarily issued as a reward for staking Curve-related assets and can itself be staked to earn a portion of the fees generated by the platform. Additionally, CVX empowers its holders with governance rights, allowing them to participate in decision-making processes that shape the future development of Convex Finance. This structure not only encourages active involvement from its community but also ensures that the interests of CVX holders are aligned with the long-term health and growth of the platform.

What is CVX?

The CVX token is an ERC-20 token on the Ethereum blockchain. It is the proprietary cryptocurrency of Convex Finance, which aims to boost returns for users in the Curve Finance ecosystem. It has a capped supply of 100 million tokens, designed to prevent inflationary pressures and ensure sustainable tokenomics. CVX is issued to participants on the platform as rewards for staking and providing liquidity, fostering a robust participation economy. In addition to its role in reward mechanisms, CVX grants holders governance rights, allowing them to vote on key protocol decisions, thereby aligning the interests of token holders with the long-term objectives and governance of Convex Finance.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. 

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform. 

Wealthsimple has performed an assessment of whether CVX can be supported by Wealthsimple’s platform, including whether CVX is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated CVX based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of CVX, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created CVX;
• The supply, demand, maturity, utility and liquidity of CVX;
• Material technical risks associated with CVX, including any code defects, security breaches and other threats concerning CVX and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with CVX, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of CVX; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether CVX, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to CVX may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support CVX.

Like all other crypto assets, there are some general risks to investing in CVX. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading CVX. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision). 

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: October 14, 2025