> For the complete documentation index, see [llms.txt](https://docs.cortexdao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cortexdao.com/the-convex-index/how-it-works.md).

# How it Works

## Index Token Exposure

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

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

## Protocol Mechanics

The following details the mechanics of the CortexDAO protocol when batching and deploying capital from the Index and idxCVX purchases. 

1. **Pooled deposits.** Deposits from purchases of the index, or index token, are pooled.
2. **Capital deployment.** Pooled deposits are diversified and deployed into any amount of the currently active Curve LP pools within the index.    
3. **Staking.** The Curve LP pools return Curve LP tokens, which are claimed and staked into various Convex positions within the index.
4. **Harvesting & Autocompounding.** CortexDAO claims CRV/CVX/additional reward assets earned from deployments. Returned assets are swapped for stablecoins and re-deployed into active strategies to compound.
5. **Rebalancing.** As position sizes deviate from the initial target weighting parameters, CortexDAO will rebalance positions incrementally to bring the portfolio pools closer to the target weights over time. To ensure efficiency, each rebalance is tested for optimal trade execution and will not process until a subsequent test has passed.


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