Convex Index 101
Last updated
Last updated
The Convex Index instantly grants a user diversified exposure to a portfolio of Convex strategies through a single Index Token (idxCVX) purchase.
User purchases idxCVX with stablecoins.
Stablecoins are pooled and deposited into a portfolio of risk-assessed Convex strategies.
Strategies generate returns in the form of reward and incentive tokens.
Reward and incentive tokens are harvested.
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 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.
This instantly grants a user a completely risk-adjusted, diversified portfolio through a single transaction.
A single purchase of the index token (idxCVX) instantly grants a user exposure to all of the currently within the index.