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TVL $9MAPY 3.25%medium riskUpdated Feb 1, 2025

LUSD/3CRV Convex Deposit

Deposit Curve LUSD/3CRV LP tokens into Convex for boosted yields on this Liquity stablecoin metapool.

ProtocolConvex
Networkethereum
SymbolCVXLUSD3CRV
CategoryYield Vaults
Underlying Assets
LUSDDAIUSDCUSDTCRVCVX
Contract Address0xc2d3e4f5a6b7c8d9e0f1a2b3c4d5e6f7a8b9c0d1

What is LUSD/3CRV Convex Deposit?

This vault optimizes yields for the Curve LUSD/3CRV metapool through Convex Finance. LUSD is Liquity Protocol's decentralized stablecoin, and this metapool pairs it with Curve's 3pool (DAI/USDC/USDT) for deep stablecoin liquidity.

Understanding LUSD and Liquity Protocol

Liquity represents one of the most decentralized stablecoins:

  1. ETH-Only Collateral: LUSD is backed exclusively by ETH
  2. Immutable Contracts: No governance, no upgrades, no admin keys
  3. 0% Interest Loans: One-time borrowing fee, no ongoing interest
  4. Minimum Collateral Ratio: 110% MCR, highly capital efficient
  5. Stability Pool: LUSD holders earn ETH liquidation gains

LUSD has maintained strong peg stability through multiple market cycles.

How Metapools Work

The LUSD/3CRV structure:

  • LUSD paired with 3CRV (composite of DAI/USDC/USDT)
  • More capital efficient than separate pairs
  • LPs get exposure to all four stablecoins
  • Deep base pool liquidity supports metapool swaps

How This Vault Works

  1. Provide LUSD and/or 3CRV to the metapool
  2. Stake LP tokens in Convex vault
  3. Convex applies veCRV boost
  4. Earn trading fees + CRV + CVX
Yield Sources: Curve swap fees, boosted CRV emissions, CVX token incentives.

Fee Structure

Convex standard fees:

  • 16% of CRV rewards
  • No deposit/withdrawal fees

Curve metapool swap fees to LPs.

LUSD Stability Mechanism

Liquity maintains LUSD peg through:

  • Arbitrage with ETH collateral
  • Stability Pool liquidations
  • Redemption mechanism (LUSD to ETH)
  • 0.5% redemption fee floor

The peg has remained tight even during 2022's stablecoin crises.

cvxCRV and Convex Ecosystem

This vault benefits from Convex's CRV aggregation:

  • Boosted rewards without individual veCRV locking
  • cvxCRV stakers provide the underlying boost
  • vlCVX governance directs emissions
  • Sustainable yield infrastructure

Risk Disclosures

Smart Contract Risk: Exposure to Curve, Convex, Liquity, and underlying 3pool stablecoin contracts. LUSD Peg Risk: While historically stable, LUSD can trade above or below $1. ETH crashes could affect redemption dynamics. Redemption Risk: In extreme scenarios, LUSD redemptions for ETH could affect available liquidity. 3pool Risk: Exposure to DAI, USDC, USDT through the base pool. Issues with any affect the LP. Impermanent Loss: LUSD deviating from 3pool assets causes LP losses. Immutability Risk: Liquity's immutable contracts cannot be upgraded to fix issues. ETH Correlation: LUSD collateral is 100% ETH. Severe ETH declines could cascade.

Related Yield Vaults

USPD/USDC Convex Deposit1.34% APYDOLA/sUSDe Convex Deposit4.65% APYFRAXUSDe Convex Deposit2.50% APYYearn WETH yVault1.82% APYCurve.fi Factory Pool: stETH-ng Convex Deposit1.27% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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