uCVX

How does pxCVX work and what’s the Union benefit?

For many users, the appeal of pxCVX lies in its potential to unlock CVX earlier than usual. Here's how it works:

Pirex locks your CVX as vlCVX behind the scenes, and you get pxCVX in return. There's a liquid Curve pool that lets you swap out when you're ready, but you also have the option to initiate a redemption. The longer you're willing to wait for your redemption, the lower the fees you'll pay. You can start this process at: https://pirex.io/vaults/pxcvx. You will also be able to swap between pxCVX and CVX on this page.

Pirex will also vote on your behalf to secure bribe rewards. However, you'll need to manually claim these rewards yourself. To make things even easier, if you're part of the Union, the pounder will claim and compound your bribe rewards for you, turning them into more pxCVX.

Isn’t the CVX Pounder 1.5% withdrawal (exit) fee high?

The exit fee is a protective measure designed to prevent what we call "front running." This is when a big investor, or a 'whale,' jumps into the pool just before rewards are compounded, grabs the rewards, and then quickly leaves. This kind of action can disrupt the stability of the pool and isn't fair to the other participants.

Now, if you're an honest participant and you decide to leave the pool, you'll pay an exit fee. While it may seem like a penalty, it's really a protection for the pool. And here's the interesting part: if you stick around in the pool, you actually end up receiving the exit fees from everyone else who leaves. So, in a way, the fee that might initially feel like a loss can turn into a gain if you decide to stick around.

Is there a depeg risk?

Yes, there is a change of a temporary depeg. However, in the rare case of a depeg there is a secure path to redemption, given the collateral-backed and leverage-free nature of the system. In a worst-case scenario, if the pool depegs, the pxCVX would revert to a standard 16-week CVX lock, ensuring you always have a way to reclaim your CVX.