Convex Index 101
The Convex Index instantly grants a user diversified exposure to a portfolio of Convex strategies through a single Index Token (idxCVX) purchase.
- 1.User purchases idxCVX with stablecoins.
- 2.Stablecoins are pooled and deposited into a portfolio of risk-assessed Convex strategies.
- 3.Strategies generate returns in the form of reward and incentive tokens.
- 4.Reward and incentive tokens are harvested.
- 5.idxCVX accrues value over time.
The Convex Index has financial properties that vastly improve the performance of almost any portfolio:
- Instant portfolio diversification. The Convex Index is comprised of a variety of Convex positions. Purchasing idxCVX grants you exposure to all of the strategies within the index at once.
- Reduced gas fees. Creating a diverse portfolio of Convex Positions yourself would be costly, requiring gas fees for each and every transaction (50+!) the index performs. Instead, a user pays just a single gas fee for purchasing the index token.
- Secure, risk-adjusted strategies. Each active strategy within the index is heavily screened through a rigorous risk assessment process before each capital deployment, saving users the headache of manually vetting strategies before each and every deposit.
- Secure, stable returns. The Convex index favors stable and steady returns over risky degen yields.
- Low correlation to DeFi blue chips, BTC/ETH, S&P500. This lowers portfolio volatility, even during bearish market conditions.
- High sharpe ratio. This demonstrates a low-risk portfolio performance with secure and steady returns.
The Convex Index greatly simplifies and reduces costs vs. DIY’ing a diversified Convex portfolio.
A single purchase of the index token (idxCVX) instantly grants a user exposure to all of the currently active Convex strategies within the index.
This instantly grants a user a completely risk-adjusted, diversified portfolio through a single transaction.