# Convex Index 101

## What is the Convex Index?

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.

### Additional Resources

* [Convex Index Whitepaper](https://docs.cortexdao.com/the-convex-index/whitepaper)
* [How it Works](https://docs.cortexdao.com/the-convex-index/how-it-works)

## Benefits of the Convex Index

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](https://docs.cortexdao.com/the-convex-index/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.

## **idxCVX - The Convex Index Token** 

A single purchase of the index token (idxCVX) instantly grants a user exposure to *all* of the currently [active Convex strategies](https://docs.cortexdao.com/the-convex-index/index-construction) within the index.  

This instantly grants a user a completely risk-adjusted, diversified portfolio through a single transaction.