If you have recently purchased CRV to enjoy the amazing returns offered by Curve Finance and are unsure about which platform to stake on, this article is for you. We will discuss three popular options for staking your CRV: yCRV, cvxCRV, and sdCRV, as well as their respective platforms, Yearn Finance, Convex Finance, and Stake DAO. We will also compare their pegs to CRV and the potential rewards that each platform offers.
1. Understanding cvxCRV, yCRV, and sdCRV
Each of these tokens represents a claim on veCRV (voting escrow CRV) locked in their respective platforms. They are all designed to optimize the rewards and benefits of holding veCRV, such as admin fees, voting power, and CRV emissions. They can all be traded on decentralized exchanges, particularly on Curve Finance pools. However, they also have unique features:
\- cvxCRV: Represents a claim on both veCRV and CVX (the native token of Convex Finance) locked in the Convex platform, allowing it to receive rewards from both sources.
\- yCRV: The base token of Yearn Finance’s veCRV wrapper system, which can be converted into one of the three activated tokens that carry native rewards.
\- sdCRV: Represents a claim on veCRV locked in the Stake DAO platform, making it exclusive to the Stake DAO ecosystem.
2. Pegs of cvxCRV, yCRV, and sdCRV to CRV
It is important to examine the pegs of these three tokens to CRV. cvxCRV is at 91.25% peg levels and leads in terms of the number of CRVs. yCRV follows with a 93.92% peg, while sdCRV preserves the maximum peg.
3. Comparing Potential Rewards
Based on the current APRs, if your SDT amount is sufficient, you can achieve a maximum yield of 45.52% APR over Stake DAO. In second place is yCRV, the token of Yearn Finance, with 25.47%. Lastly, Convex Finance offers a 17.58% APR.
Conclusion
In summary, cvxCRV, yCRV, and sdCRV offer different staking options for CRV holders on their respective platforms, each with its unique features and potential rewards. It is essential to consider these factors when deciding where to stake your CRV to optimize returns and enjoy the benefits of each platform.
Regards the 91.25% peg level for cvxcrv. That means I’m going to lose 9% when I swap back to crv, right? And it could get worse…