Introduction: How does Curve reward its liquidity providers?

<aside> 🦋 Understanding the Curve rewards scheme is crucial to understand Curve and Convex relationship. To put it simply, the more you provide stablecoins to Curve, the more you get CRV tokens and the more you get CRV tokens, the more you can get rewards on Curve!

</aside>

How does Convex help CRV holders/Liquidity providers to boost their Curve rewards?

Convex is an intermediary between CRV holders/Liquidity providers on one hand and Curve on the other hand. Convex users pool their CRV tokens together to maximize rewards whatever their size! In other words, many CRV holders/Liquidity providers team up as one BIG CRV holder through Convex and therefore are able to reach the maximum rewards.

Why Convex is trying to get as many CRV tokens as possible?

For all these reasons mentioned above, Convex is involved in an ongoing battle for CRV tokens, trying to lock up as much Curve liquidity as possible. Convex needs all the CRV tokens they can get to keep increasing interest rates for Curve Liquidity providers/CRV holders and they are not the only ones involved here