We’ve covered what Proof of Work and Proof of Stake is, but what is PaaS?

In this article, we’re making this rather complicated-sounding term easy to understand as we explore where it came from, what it means, and why it’s likely to keep popping up in the crypto realm. 

What Is PaaS?

PaaS stands for Platform as a Service and refers to a cloud delivery service that uses third-party cloud service providers. “As a service” indicates that the cloud computing service is provided by a third party, rather than the user having to manage their own hardware and software.

PaaS providers offer a range of services, including operating systems, databases, middleware, and other software development tools. PaaS offerings can be used for both cloud-native and hybrid cloud applications.

PaaS solutions are popular among software developers and businesses looking to migrate their applications to the cloud. They provide an application development platform that can be used to build and deploy applications quickly and easily, without the need for specialized hardware or software.

Some of the key benefits of PaaS include reduced costs, faster deployment, and greater flexibility and scalability. PaaS providers offer a range of services, including operating systems, databases, middleware, and other software development tools. This allows users to develop, run, and manage applications without having to worry about the underlying infrastructure.

The History of PaaS

PaaS first appeared in 2005 as Zimki under the company Fontago. Zimki allowed users to build and deploy web services and applications through its code execution platform.

Billing was determined based on the number of JavaScript operations, the amount of web traffic and the total storage used, providing users with a much clearer cost structure than on other platforms. The platform was eventually shut down in 2008 by its parent company.

That same year the Google App Engine was launched allowing users to create web services and applications using languages like Go, PHP, Node.js, Java and Python.

Today, Google remains the biggest PaaS vendor in the world. 

How Does PaaS Work?

Instead of replacing its overall IT infrastructure and running these services in-house, PaaS streamlines access to its key services. This helps to reduce time in deployment as well as minimize startup costs. 

PaaS allows users to tap into resources and functions like capacity on demand, data storage, text editing, vision management and testing services despite being in geographically different locations. All while using a pay-per-use model. 

PaaS Offers Development Tools

PaaS, or Platform as a Service, is a cloud-based platform that provides users with access to the tools and resources needed to develop and run applications. Instead of replacing its overall IT infrastructure and running these services in-house, PaaS streamlines access to its key services, allowing users to easily tap into resources and functions like capacity on demand, data storage, text editing, vision management, and testing services. This pay-per-use model enables users to access the tools and resources they need without incurring the high costs of building and maintaining their own infrastructure.

PaaS technology offers a range of benefits for both developers and businesses, including the ability to easily integrate databases, manage infrastructure, and access data centers. This can provide a range of advantages, such as improved performance, enhanced security, and increased scalability.

PaaS technology providers also offer a range of services and support to their customers, including integration platforms and infrastructure management services. This can help businesses to quickly and easily integrate their applications with other systems and platforms, allowing them to take advantage of the benefits of PaaS without having to worry about the underlying infrastructure.

PaaS vs IaaS vs SaaS

PaaS, IaaS, and SaaS are all different models of cloud computing. PaaS, or Platform as a Service, provides access to the tools and resources needed to develop and run applications, while IaaS, or Infrastructure as a Service, offers access to the underlying infrastructure, including storage, networking, and computing power. SaaS, or Software as a Service, provides access to software applications over the internet.

These models differ in terms of what areas are handled on-site and which are handled by a third-party provider. For example, with PaaS, the infrastructure and operating system are managed by the provider, while the customer focuses on developing and deploying their own applications. With IaaS, the provider manages the infrastructure, while the customer is responsible for the operating system and applications. With SaaS, the provider manages everything, including the infrastructure, operating system, and applications.

Examples of companies that offer PaaS services include Amazon Web Services and the IBM Cloud, while IaaS providers include AWS, Microsoft Azure, and Google Cloud. Dropbox, Salesforce, and Google Apps are examples of SaaS providers.

These models offer advantages to businesses and developers looking to enter the cloud computing space. For example, PaaS offers the ability to focus on app development without worrying about the underlying infrastructure, while IaaS and SaaS provide access to cloud resources and the ability to quickly deploy and scale applications. These models can also be used to build communications platforms and other mobile applications, providing access to the necessary infrastructure and resources.

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PaaS Provider In Blockchain

The use of PaaS technology, or Platform as a Service, within the blockchain industry is becoming increasingly popular. While blockchain platforms themselves are not typically structured in a PaaS way, the concept of BPaaS, or Blockchain Platform as a Service, offers businesses and enterprises the opportunity to focus on the development of software and other services for customers.

BPaaS provides numerous advantages for companies looking to enter the blockchain space. It allows businesses to leverage the power of cloud-based infrastructure and resources to develop and deploy applications without the need to manage their own hardware and software.

PaaS providers like Amazon Managed Blockchain and the IBM Blockchain Platform are leading the way in offering BPaaS solutions to businesses. These platforms offer a range of tools and resources for application development, including integrated development environments (IDEs), code libraries, and APIs. This allows developers to focus on building and deploying their own blockchain-based applications without worrying about the underlying infrastructure.

Overall, the use of PaaS in the blockchain industry offers numerous benefits, including reduced production costs, streamlined deployment, and the ability to easily integrate specific AI capabilities into applications. This makes it an attractive option for businesses looking to enter the blockchain space.

When learning about cryptocurrencies you're likely to come across the term "smart contracts". First popularised by Ethereum, smart contract functionality is now a regular feature among platforms that allow developers to build decentralized apps (dapps).

In this article, we're breaking down what smart contracts are, how smart contracts work, and where they came from.

What is a smart contract?

A smart contract is a digital agreement that executes based on the terms of the agreement. The terms are predetermined and written into the smart contract's code, ensuring that no edits can be made once the smart contract has been executed. As the smart contract is written using blockchain, the transactions are transparent and irreversible.

Due to the nature of these digital agreements, they can be carried out by two anonymous parties without the need for a third party/ central authority.

Smart contracts generally require payment for their creation, as the execution of the smart contract will require energy from the network. Ethereum smart contracts, for example, require gas fees in order to be created and executed, which are paid directly to the platform. The more complex the smart contract, the higher the gas fees. Other smart contracts will require payment in the digital assets utilized by the platform.

Smart contracts work because they are automated and utilize powerful decentralized technology.

Benefits of smart contracts

First and foremost, the biggest benefit of smart contracts is that they are trustworthy as they cannot be tampered with, nor can a third party intervene. So smart contracts cannot be hacked as they use blockchain technology to encrypt the information.

Smart contracts are cost-effective as they eradicate the middleman and save the users both time and fees that would otherwise come with them. Once certain criteria are met, smart contracts automatically execute, requiring no time delays, paperwork, or room for error. A smart contracts accuracy is determined by the accuracy of the coding used to create the smart contract.

many industries including insurance companies are using smart contracts to streamline and automate their business processes, including fulfilling legal obligations and managing financial transactions. By utilizing if-then statements, the insurance company can create smart contracts that automatically execute the insurance payment to policyholders when certain conditions are met. This can be used to process claims, pay out benefits, and manage other contracts in the same way.

How do smart contracts work?

Smart contracts are digital agreements built using blockchain. Developers looking to create a smart contract will need to utilize a blockchain platform that provides such functionality.

Determine agreement terms

Developers will first need to determine what the agreement terms are as well as the desired outcome. For example, one might create a smart contract that stipulates when 0.5 BTC is received by a certain digital assets wallet the code to a keypad on a property will be sent to the renter.

Determine conditions of agreement

Establish the conditions of the smart contract such as payment authorization or shipment receipt.

Write code

Using a smart contract writing platform, developers will write the code. This will then be sent to another team, such as an internal expert, for security testing.

Smart contracts deployed

Once approved, the code is then deployed on the blockchain platform. The smart contract will then be alerted to any event updates.

Smart contracts executed

Once the terms of the agreement are met and communicated to the blockchain through an oracle (a secure streaming data source), the smart contract will then automatically execute the desired outcome.

One might liken a smart contract to a digital vending machine. The terms of the agreement are understood by both parties involved prior to the transaction. Through an automated process, one party will input the initial criteria (the funds) and the predetermined outcome will be executed automatically (the selected goods will be released).

History of smart contracts

Smart contracts were first conceptualized by American computer scientist, Nick Szabo, the creator of the first digital money "Bit Gold", in 1998. He created them with the intention to digitize transaction methods to replace traditional contract and defined these smart contracts as "computerized transaction protocols that execute terms of a contract."

"These new securities are formed by combining securities (such as bonds) and derivatives (options and futures) in a wide variety of ways. Very complex term structures for payments can now be built into standardized contracts and traded with low transaction costs, due to computerized analysis of these complex term structures."

Szabo's concept remained purely theoretical until the invention of public blockchain technology, which provided the necessary infrastructure for storing and executing smart contracts. In recent years, smart contracts have been used in a variety of industries, including finance, real estate, and supply chain management. While there are still some security concerns with the technology, the use of smart contracts could further increase the efficiency and reliability of transactions.

Conclusion

Smart contracts are digital a contracts between two parties that are automatically executed once certain conditions are met without time delay. Built on the blockchain, smart contracts are immutable, irreversible, and transparent, and require no third parties. Smart contracts are written in varying programming languages dependant on the blockchain network on which they are created. This technology ensures that the smart contracts are implemented correctly.

Crypto lending might be the hot new product in the cryptocurrency space, but before you dive in be sure to first understand what it entails. The concept grew great traction with the rise of the decentralized finance (DeFi) movement, with platforms offering users high yields for borrowing crypto assets. 

Let’s get started with what crypto lending is, and then explore how the product works. 

What is crypto lending?

Crypto lending is a traditional banking service curated to the crypto world. With the DeFi space remains largely unregulated, many crypto exchanges and other platforms have started offering these services, with added security. 

Crypto lending involves a user lending crypto assets to a platform in return for interest, which allows other users to then borrow said crypto assets, paying interest on the amount borrowed. The platform will then take a small percentage of the interest paid. 

Depending on the platform and other factors, crypto lending platforms may be centralized or decentralized and offer exceptionally high-interest rates, with annual percentage yields (APYs) of 15% or more. With the interest rates being higher than traditional bank accounts, lenders gain access to much greater yields, increasing their returns. 

Another advantage to crypto lending is that users are still exposed to price gains in the market. Meaning that if you deposit your Bitcoin when it's worth $20,000 and the price rises in value to $50,000, you are still able to realize these returns and earn interest for the duration of the loan. 

Note that interest rates might fluctuate with market conditions on some platforms, increasing when the prices increase and decreasing when markets are down.

How does crypto lending work?

Cryptocurrency lending platforms function as middlemen connecting lenders to borrowers. Lenders deposit their digital currency into high-interest lending accounts, and borrowers utilize the lending platform to acquire loans. These systems then lend money utilizing the crypto that investors have provided them.

The platform controls its net interest margins by establishing the interest rates for both lending and borrowing.

Rates on platforms differ from cryptocurrency to cryptocurrency, some platforms might offer higher interest rates to lenders willing to commit to a certain time frame. There is no standard interest rate for cryptocurrencies, as each platform has its own set of rules.

Centralized crypto lending means putting your money in the hands of a corporation or other entity to manage and make the process easier. Accounts are created for borrowers and lenders, and loans may be requested by applicants.

Lenders and borrowers may connect their cryptocurrency wallets to a decentralized crypto lending protocol, ​​which uses smart contracts to automate the lender-borrower relationship. Smart contracts are automated digital agreements that execute once certain criteria is met. 

The advantages of crypto lending

There are several benefits to crypto lending when comparing it to a regular bank account.

Borrowers have access to these financial services without having to pass a credit check, making it more financially inclusive than traditional banking services. They are also exposed to lower interest rates than regular banking loans.

Lenders that give loans in the form of cryptocurrencies can make a lot more money from their crypto assets than savings accounts. It may also be a more adaptable choice to crypto staking, which requires users to lock up their cryptocurrency and submit it to a blockchain security method. Depending on the platform, lending usually gives users access to their funds.

The downside to crypto lending

The agreement with crypto loan companies is generally made on individual terms by institution borrowers. As interest rates vary across platforms and cryptocurrencies, each company is different.

There have been several cases where lending platforms have been hit by severe liquidity crisis, notably Celsius, Voyager Digital, and BlockFi. Glenn Huybrecht, COO of Cake DeFi, said, “Some lending providers have been very generous with low collateral requirements, which then puts them in hot water when one of their customer's defaults.”

Due to the ongoing regulation battles, these crypto services are also not backed by government safety nets, like the traditional banks are. However, some platforms do hold insurance and the necessary regulatory accreditations so be sure to seek one that has all of the above.

Closing thoughts

Crypto lending platforms differ greatly from one another so be sure to check each platform, their interest rates for all the various currencies supported, and if there are any lock-up periods or fees payable. 

Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols. 

What is Lido (LDO)?

Lido DAO is an innovative decentralized autonomous organization that offers a liquid staking solution on the Ethereum 2.0 blockchain as well as other Proof of Stake (PoS) platforms like Solana (SOL), Polygon (MATIC), Polkadot (DOT), and Kusama (KSM). 

By initially locking up assets, Lido DAO allows users to liquefy their holdings and use them for other protocols - what we call 'liquid staking'. Through this yield-generating process, users are able to receive a tokenized version of their staked tokens on a 1:1 basis when depositing their crypto tokens into the network, which can then be used to participate in other DeFi on-chain activities to gain additional yields.

Since its establishment in December 2020, shortly after ETH 2.0's release, the platform has been overseen by the Lido DAO, with several key members including P2P Capital, KR1 and Semantic Ventures. 

Since then, Lido DAO has gained an impressive reputation for its liquid staking capabilities, and now boasts over $13 billion in staked assets. Its core focus is on Ethereum, yet its horizons are expanding to other blockchain networks including Terra and Solana, both of which launched staking capabilities in 2021, as well as several other layer 1 PoS blockchains.

Lido DAO stands apart from other liquid staking protocols due to its decentralized nature and attractive annual percentage rates (APR). The platform offers 4.8%, 8.1% and 6.6% APR for staking Ethereum, Terra and Solana respectively.

Who created the Lido DAO platform?

Lido was co-founded by Kasper Rasmussen and Jordan Fish, also known as CryptoCobain. Behind the Lido DAO are a number of individuals and organizations that are well-regarded within the DeFi space. 

Lido DAO members include Semantic VC, Chorus, ParaFi Capital, P2P Capital, Libertus Capital, Terra, StakeFish, Bitscale Capital, StakingFacilities, and KR1. Several of the highly esteemed angel investors include Stani Kulechov of Aave, Banteg of Yearn, Will Harborne of Deversifi, Julien Bouteloup from Stake Capital and Kain Warwick from Synthetix.

How does the Lido Protocol work?

Liquid staking services through the Lido protocol allow users to earn block rewards from staking PoS assets while addressing issues like illiquidity, complexity, and centralization. Lido DAO offers an innovative solution that allows users to gain access to the typically locked-up tokens and lowers the barrier to entry and costs associated with staking requirements.

When staking tokens on the Lido DAO platform, users tap into a staking pool smart contract that stakes the tokens on the relevant PoS blockchain. Users will also receive a digitized version of their deposited funds (stAsset tokens), that can be used to bring in rewards from not just the original protocol but also other DeFi protocols and decentralized applications (dapps), like lending and yield farming. This allows users to maximize their earnings potential.

The staking pool smart contract manages the users' deposits and withdrawals, determines the staking reward fees, delegates funds to node operators, and mints and burns tokens as needed.

How tokens can be used

Let's look at ETH for example. With Lido staking, users are rewarded with 1:1 stETH tokens that represent their deposited ETH. Users can use their stETH balance just like regular ETH to earn staking rewards in real-time, updated on a daily basis. There are no lock-ups or minimum deposits when using Lido.

Lido DAO's liquid staking protocol involves three distinctive processes: staking, minting and DeFi.

Staking

Users can choose any amount of ETH to stake, which is then deposited onto the platform. 

Minting

In return for the staked ETH, Lido issues on a 1:1 ratio minted or Lido-native liquid representatives of ERC-20 coin (stETH). 

DeFi

Users can make use of these stETH tokens across the DeFi ecosystem to earn greater yields bypassing the need to "lock up" staked coins. 

With the Lido DAO platform, users can stake any amount of ETH to the Beacon Chain without having to comply with typical lock-up requirements. For providing this staked ETH service, a 10% fee is collected by Lido for each process.

How validator rewards are earned from staked assets

Validator rewards can be earned through staked PoS tokens on the platform. In order to stake ETH, become a validator and earn rewards for validating payments on the Ethereum platform, users are required to stake a minimum of 32 ETH tokens. To bypass this minimum requirement and still earn rewards, Lido allows users to stake a fraction of this amount and earn a proportionate amount of block rewards.

Users will then deposit ETH into the Lido smart contract and receive the same number of stETH (an ERC-20 token representing the deposited ETH). These tokens are minted once the funds have been received and are burned when the users withdraw their original ETH. The staked funds will then be distributed to the multiple validators (node operators) on the Lido network and deposited into the Ethereum Beacon Chain from where they will be secured in a smart contract (and inaccessible).

The Lido DAO will then assign, onboard, support and enter the validators' addresses to the smart contract registry before being given a set of keys for the validation. All ETH that users have deposited on the Lido platform will be split into groups of 32 ETH among the active Lido node operators who will use this public validation key to validate transactions. The block rewards will then be shared proportionately.

This distribution process of sharing staked assets eliminates single-point-of-failure risks common among single-validator staking. 

What is LDO?

The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions. 

The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution. 

The more LDO coins a user holds, the more powerful their vote. 

How can I buy the Lido DAO token and earn staking rewards?

If you're looking to expand your digital currencies portfolio, Lido tokens can be a great addition. The Tap app provides an easy and secure way for anyone with an account to add these tokens to their portfolios in no time, making it one of the most effortless trading experiences around.

Utilize the Tap app to access the Lido ecosystem by purchasing LDO tokens with either crypto or fiat currencies. Users can then choose to store their LDO tokens securely in the integrated crypto wallet or transfer them to the Lido platform and engage in the platform's earning potential. All you need to do to get started is download the app and create an account. 

Ankr is playing an integral role in the adoption of Web3, providing growth and development opportunities for network stakers, app developers, and other participants in the DeFi space. 

Ankr is leading the way in making it easier for users to interact with multiple blockchains. Streamlined and simple, Ankr simplifies complex tasks so that you can access multi-blockchain technologies quickly and securely.

What is Ankr (ANKR)?

Ankr is a decentralized Web3 infrastructure provider that facilitates the swift and effortless connection between developers, dapps, stakers, and blockchains. With Ankr's APIs & RPCs you can quickly build blockchain-based applications with confidence, stake on Ankr Earn as well as access custom solutions for any blockchain enterprise needs.

Ankr simplifies the process of setting up and participating in Proof of Stake (PoS) blockchains. It provides various tools and services to help users deploy nodes, stake their PoS tokens, and access decentralized finance (DeFi) applications. The Ankr platform was first launched as a Distributed Cloud Computing Network that leverages idle computing resources. This allowed users to access cloud computing services without relying on a single provider's infrastructure.

Ankr provides a variety of features and tools, such as node hosting, staking pools, analytics, and automated notifications. These services work together to make participating in Web3 easier by providing simple solutions. 

The node creation process is supported across multiple blockchains and in return for the services provided, node operators pay a monthly fee to Ankr. 

ANKR is Ankr's native cryptocurrency fueling the platform and is used as a payment method within the ecosystem. 

Who created the Ankr platform?

Ankr was founded in 2017 by Chandler Song, Ryan Fang and Stanley Wu and officially launched in 2019. Song and Fang were former college roommates while Song worked under Wu, a computer engineer at Amazon Web services, while interning. Together the three founders created Ankr, with a mission to build the most decentralized and scalable Web3 infrastructure possible. Song is currently serving as CEO, Fang as COO, and Wu as CTO.

Following several successful rounds of funding, the team has amassed tens of millions of dollars from big blockchain investors such as Pantera Capital and NEO Global Capital (NGC) as well as several funding rounds. The first token presale raised $15.9 million followed by another token sale which raised $18.7 million in just six days. Once opened to the general public, the platform raised a further $2.75 million. 

How does the Ankr Protocol work?

It is important to note that Ankr is not a blockchain. Instead, it provides specialized tools which are beneficial for builders, stakers, and businesses alike. Its main features can be broken down into these four categories below:

Node infrastructure services

With Ankr's decentralized infrastructure, DeFi platforms, NFT projects, blockchain games and dapps of all kind can receive faster access to blockchains at a more scalable and cost-efficient rate. Hosted by numerous high-performing nodes across the world simultaneously serving requests, these applications are guaranteed optimal performance.

However, setting up a blockchain node requires technical know-how, time, and effort, skills not everyone possesses. Ankr provides a service where it can launch one which can be accessed remotely. This provides the opportunity for users of all skill levels to participate in the validation process on a Proof of Stake blockchain. Additionally, the platform overlooks the performance of the node to ensure that users' funds staked are not punished due to any downtime or dishonesty.

Instant API and RCP access for developers

Developers who are launching smart contracts​ and ​dapps to a blockchain are required to use designated APIs (Application Programming Interfaces). This process typically involves running a node alongside these and spending time synchronizing it to the data on the blockchain. 

To solve this issue, Ankr provides instant API services and RPC (Remote Procedure Call) access to developers. This allows for uninterrupted access to blockchains without having to worry about vying traffic. It also provides access to the whole chain's data, supplying the dapp with all the information it might require and an overall better user experience. 

Custom Blockchain Enterprise Tools

For enterprises in need of custom-made, streamlined solutions for handling multiple blockchain networks, Ankr provides a Web3 Infrastructure-as-a-Service model. Accessible through an easy-to-use monitoring platform, businesses can utilize the platform's API and RPC services making their operations more efficient and cost-effective.

Liquid staking

Ankr provides staking capabilities across multiple chains, offering reward-earning tokens to represent these staked funds. The tokens can then be used to trade or for various DeFi activities such as lending, yield farming, liquidity mining, etc. This allows users to maximize their earning potential while still engaging in staking activities. 

For example, instead of staking the minimum required amount of 32 ETH on Ethereum 2.0, users can stake 0.5 ETH through the Ankr protocol, with these funds automatically being routed to the pools with the highest yield. In return, users will receive aETHb or aETHc tokens, which provide a liquid way in which users can access their staked tokens. 

What is the ANKR token

ANKR is an ERC-20 and BEP-20 token that operates across both the Ethereum and BNB Smart Chain networks. The utility token has a number of functions, as outlined below, and a maximum supply of 10,000,000,000. 

ANKR is primarily a form of payment on the platform but also offers staking functionalities and governance rights. 

How can I buy the Ankr token?

Tap's mobile app makes it effortless for users to acquire ANKR and store it in the integrated wallet with assurance. Not only can you benefit from a convenient place to acquire and store your ANKR token, but also withdraw coins immediately for use on the linked DeFi platform. Tap provides you with not just an easy way to trade digital assets, but also a reliable space where your assets holdings can remain securely stored over extended periods of time.

Unlock the potential of a range of verified cryptocurrencies and fiat wallets by downloading the Tap mobile app.

Convex Finance has been dubbed a "DeFi 2.0 protocol," and is part of the ever-growing subset of second-generation decentralized finance (DeFi) protocols that offer yield farming services to users. Deeply ingrained in the DeFi space, Convex empowers Curve Finance users to further benefit from earning and optimizing yields. 

What is Convex Finance (CVX)?

Convex Finance is a revolutionary DeFi platform that offers enhanced staking rewards and works on top of the Curve Finance network, a decentralized exchange (DEX) liquidity pool designed for the swapping of stablecoins. By focusing on stablecoins, the Curve exchange platform is able to bypass volatility typically associated with the cryptocurrency industry, as well as offer lower trading fees and less slippage.

Curve Finance functions using its native CRV tokens which are earned when users deposit crypto assets into its liquidity pools. Both protocols, Curve and Convex, are built on the Ethereum blockchain. Convex acts as a yield optimizer for both Curve CRV token holders and Curve liquidity providers on the network. 

Convex offers a simple user experience alongside extra advantages such as low-performance fees and zero withdrawal fees, which allows liquidity providers and CRV stakers to earn higher returns. Convex Finance CVX tokens are the platform's native token and are ERC-20-based utility tokens with additional governance incentives.

The Convex Finance protocol offers two ways in which users can optimize their yields: staking and providing liquidity.

• Staking: users can stake CRV tokens on Convex (instead of staking on Curve directly) to receive additional rewards (CVX and a portion of the protocol's earnings). CVX can also be staked on the Convex platform, and in return, users earn a share of Curve liquidity providers' CRV earnings. 
• Liquidity providers: as a reward for providing liquidity on the Curve platform, liquidity providers earn Curve LP tokens. These tokens can be staked on the Convex platform in return for CRV tokens and additional rewards. The more CRV tokens that are staked, the higher the reward distribution. 

CVX token holders can earn governance rights by locking their tokens on the platform for a specific amount of time. 

Who created the Convex Finance platform?

Convex Finance was launched in May 2021 by a pseudonymous founder, C2tp. Little is known about this person or group but it is assumed that they came from a software development background. Despite anonymous founders generally being a red flag for risky investments, Convex has defied this norm and is considered to be one of the most influential and important protocols in the DeFi industry. 

In its first month, Convex Finance recorded $68 million in total value locked (TVL), reaching its peak in January 2022 of $21 billion. TVL refers to the sum of all the crypto assets deposited in a DeFi protocol at any given.

Soon after launching, the Convex platform was whitelisted on the Curve platform. Due to a large number of CRV tokens being deposited on Convex, Curve granted Convex permission to participate in Curve's governance. 

How does Convex Finance work?

The Convex Finance protocol provides users access to liquidity and earning trading fees through Curve's established stablecoin pools. In order to do so, users need to deposit Curve tokens into Curve's liquidity pools and then stake them on Convex. Acting as an intermediary, Convex then auto-harvests these tokens and reimburses liquidity providers with the gained rewards. 

CRV tokens and curve liquidity providers

These rewards can be distributed as either CRV or other tokens such as LDO or SNX. Liquidity providers can also increase their returns by further compounding their earned CVX tokens through the staking mechanism. Both CRV stakers and Curve’s liquidity providers are entitled to Convex liquidity mining rewards. 

Convex Finance CVX tokens were designed to simplify staking on Curve's platform with an added fee-earning nature. When a user deposits CRV into Convex, the platform converts these tokens into veCRV (vote escrowed CRV) and credits the depositor with cvxCRV on a 1:1 ratio. Users can then exchange the cvxCRV tokens for CRV using the Curve liquidity pool and earn higher yields by locking up more CRV. 

When users have deposited a certain amount of CRV tokens into the Convex protocol they receive wrapped cvxCRV tokens. These tokens can be staked for CVX tokens and are entitled to CRV rewards earned through the protocol. These rewards include receiving a part of the CVX token airdrop and a 10% share of the CRV harvested by the vaults. 

By providing users the opportunity to earn staking rewards and trading fees without having to lock in CRV, Convex offers a secondary source of income for tokens users already own through Curve. This is the core reason for Convex's success and growth. 

What are CVX tokens?

Convex Finance CVX tokens are ERC-20-based tokens with both utility and governance functionality. The token is used to receive a share of Convex platform fees and reward CRV stakers.

The token has a maximum supply of 100 million, with 50% of the tokens assigned to rewarding Curve liquidity providers. 25% of the remaining tokens are allocated to liquidity mining distributions over the next four years while 9.7% are held in the platform's treasury.

How can I buy the Convex Finance CVX token?

Tap grants its users the freedom to trade securely while retaining their cryptocurrencies in its integrated wallet or the choice of withdrawing them for use on DeFi platforms. Tap offers a secure space to not only trade digital assets but to store them long term too. 

Unlock the power of Tap's mobile app by creating an account and completing your account verification steps. You'll then enjoy access to a wide array of vetted crypto markets and fiat currencies, from where you can buy or sell Convex Finance CVX tokens in a click. All that stands between you and get started with Tap is getting the app today.