What makes Velodrome Finance special?

• main content
• Products of Velodrome Finance
• AMM
• Liquidity Marketplace
• Velodrome Finance's revenue
• Highlights of Velodrome Finance
• Learn about the VELO . token
• Basic information about VELO . token
• Token Allocation
• Token Use Case
• Token Release Schedule
• Token Airdrop
• Project development roadmap
• Project team
• Investors and partners
• Investors
• Partner
• Epilogue

main content

Velodrome Finance is a decentralized exchange developed on the Optimism platform . They took both the development idea and the codebase from Solidly, a popular AMM on Fantom with the ve(3,3) model in early 2022. However, Velodrome thinks they have overcome the weaknesses of Solidly and make better use of the ve(3,3) model.

Before developing Velodrome Finance, the team built veDAO, a project that entered the ve(3,3) wars race on Fantom and won first place.

Products of Velodrome Finance

Velodrome Finance's goal is to become a decentralized platform for various financial products, including lending and borrowing, staking of cryptocurrencies… However, Velodrome is currently focusing on developing two products. are AMM and Liquidity Marketplace on Optimism.

AMM

According to Velodrome, their AMM product has low slippage, low transaction fees, and deep liquidity, benefiting from the ve(3,3) mechanism in the protocol.

Velodrome AMM supports nearly 90 different currency pairs, providing many options for users when searching for AMM on Optimism.

Liquidity Marketplace

Velodrome is following Solidly's model, with multiple Pool tokens, each representing the liquidity of a particular project token. Therefore, projects will try to encourage veVELO holders to vote for their Pool, which will increase Pool rewards and attract more liquidity providers.

If there are many liquidity providers, the Pool will have more liquidity, minimizing slippage for traders when trading. This creates a positive loop for both the project, the trader, the veVELO holder, and the Velodrome.

Velodrome Finance's revenue

Velodrome Finance focuses on income from transaction fees on its platform, currently the fee is 0.02%, but can be adjusted up to 0.05% depending on the specific situation.

Highlights of Velodrome Finance

Velodrome Finance combines two DeFi models from Curve Finance (veCRV) and Olympus DAO to create a new ve(3,3) mechanism. The Vote-Escrow Token model helps incentivize long-term holders, while the Staking/Rebasing/Bonding model or the game theory (3,3) helps create attractiveness for users and improves the sustainability of the project. judgment.

Each Pool on Velodrome will have a different veVELO reward rate, and this rate will be decided by voting of veVELO holders. Since transaction fees are 100% reallocated to the veVELOs that have selected that pool, holders will compete against each other to choose the most profitable Pool for themselves and accumulate more veVELOs. This creates a push to motivate users to provide liquidity, which helps increase liquidity and minimize slippage for traders when trading.

Velodrome's new innovation is the integration of a "bribe" mechanism (Bribes) to promote support for pools. Velodrome's team created this mechanism to support projects or individuals that want to attract users' attention. They use their own coins to reward veVELO holders who support their Pool, increasing the rewards and helping that Pool attract more veVELO holders. This also means appreciating that Pool in the eyes of the veVELO holder community.

Learn about the VELO . token 

Basic information about VELO . token

• Token Name: VELO Token
• Ticker: VELO
• Blockchain: Optimism
• Token Contract: 0x3c8b650257cfb5f272f799f5e2b4e65093a11a05 
• Token Type: Utility
• Initial Supply: 400,000,000 VELO
• Total Supply: 841,884.80 VELO
• Circulating Supply: 164,432,652 VELO

Token Allocation

VELO tokens are distributed according to the following ratio:

• Community: 60%
• Protocol Partners/DAOs: 24%
• Velodrome team: 10%
• Optimism team: 5%
• Genesis Liquidity Pool: 1%

Token Use Case

VELO tokens are used as rewards for liquidity providers when they participate in a Pool in Velodrome. Meanwhile, the veVELO token is used to manage and vote on the proportion of rewards paid to the liquidity pools on the platform. In addition, veVELO holders are also entitled to transaction fees, redemption fees and even rewards due to increased VELO tokens due to inflation.

Token Release Schedule

60% of the VELO will be distributed to the community, most of which will be unlocked. 24% of VELO will be locked as veVELO and distributed to partners. The remaining 10% of the VELO is distributed to the development team according to the following schedule:

• 15,520,816 VELO was distributed over 12 months, of which 6 months were locked as veVELO and 6 months were distributed linearly.
• 7,200,000 VELOs distributed over 24 months, of which 12 months are locked as veVELO and 12 months are distributed linearly.
• 3% of the amount of VELO arising from future inflation will be distributed over 6 months, of which 3 months are locked as veVELO and 3 months are distributed linearly.

Token Airdrop

Velodrome has targeted an airdrop program to distribute VELO to various users and protocols to increase decentralization and competition for projects using VELO to increase the liquidity of their Pool.

In which, 60% of the amount of VELO distributed to the community will include the following groups:

• WeVE holders (30%)
• Users on the Optimism network (25%)
• Users in the DeFi sector (25%)
• Liquidity Provider (20%)

The remaining 24% of VELO is distributed to other projects including:

• Top projects on the Optimism network (60%)
• Partner projects with Velodrome (20%)
• Key projects on the Ethereum network (20%

Project development roadmap

Velodrome Finance will go through the following important development stages:

• June 2022: Velodrome Finance is officially deployed on the Optimism platform.
• August 2022: An incident occurred when a member of Velodrome named Gabagool illegally withdrew $350,000 from the project's funds.
• December 2022: Released Velodrome 2.0 version with improvements in user interface and user experience. 

In 2023, the project is expected to update some new features such as:

• Automatic interest accrual feature
• Centralized liquidity feature based on Uniswap V3
• Metapool – a type of liquidity pool for many currency pairs
• Trading veNFT – buying and selling veNFT, a type of NFT used in the Velodrome system
• veNFT Lending & Borrowing – allows users to lend and borrow veNFT

Project team

Velodrome was founded by an excellent development team with a background from veDAO, a non-profit organization active in the field of Dapp development and blockchain technology. These team members have accumulated valuable experience and knowledge in developing and implementing diverse DeFi projects on various blockchain platforms.

Investors and partners

Investors

Velodrome does not hold a token sale and does not involve any funds.

Partner

The Velodrome project on Optimism has received significant support from the Optimism development team, making it one of the leading decentralized exchanges on Layer 2. In addition, other projects have also contributed to the Optimism. Velodrome. The figure below summarizes the list of project partners.

Epilogue

The Velodrome project is a very notable decentralized exchange on top of Optimism, which has enjoyed much success in providing a better trading experience and lower costs for its users. With its unique architecture and features, along with the support from the Optimism development team and participating projects on this platform, Velodrome has quickly attracted the attention and trust of the community and is considered is one of the most potential projects on Optimism today.