The memo
REJECTED twice over. First on category: Convex is a yield optimiser layered on Curve, so the underlying exposure is AMM liquidity provision with impermanent loss, which we reject as a class. It also stacks its own contracts on top of Curve's, so a client takes both attack surfaces to earn a boost on one. Second, and the detail that would decide it even if the first did not: CRV to cvxCRV is a ONE-WAY conversion. There is no redemption path back. To exit you must sell cvxCRV on the open market at whatever discount prevails, which by construction is worst precisely when everyone wants out. An instrument a client cannot redeem, only sell, is not a position we can responsibly put them into — it is a permanent decision disguised as a yield strategy.
What would reopen the file
- n/a — rejected
Facts on file
- Verdict
- Rejected
- Exposure
- liquidity provision
- Chains examined
- Ethereum
- Memo version
- v1
- Reviewed
- Next review