Can Convex Finance (CVX) make money from Curve?

Convex Finance (CVX) is a liquidity protocol (LP) built to make money from another liquidity protocol, Curve Finance (CRV).

To explain users stake Curve (CRV) on Convex’s platform to earn Curve trading fees. Users can even stake and earn CRV on CVX tokens and Curve trading fees. Holders can stake CVX rewards back to the platform to earn more platform tokens.

CRV stakers can deposit any amount of CRV tokens into Convex. They can receive cvxCRV tokens for providing CRV. All users can earn Curve platform trading fees. Users earn the fees as a share of boosted CRV.

How Convex Finance profits from Liquidity Mining

Liquidity providers deposit Curve tokens into the Convex app. In the app, the CRV tokens automatically earn CRV when they apply the group boost.

They pool earnings from CRV stakers to create the boost. Users can earn CRV over time and claim rewards when they want. Plus, liquidity providers can withdraw Curve from Convex whenever they want.

They claim Convex had earned $408.20million in total revenue, or 316.3 million CRV from a…