Velodrome Finance

What is Velodrome Finance?

Velodrome Finance is a next-generation Automated Market Maker (AMM) designed to be the liquidity hub for the Superchain. By combining elements from Curve, Convex, and Uniswap, it allows for stable and volatile trading with low fees.

• Focus on permissionless pools
• Liquid locked positions as NFTs
• Anti-dilution rebases for voters

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Recent Video Interview

Main points of the interview:

• Velodrome's Resilience: The team's limited resources acted as a filter, ensuring only the most committed members remained.
• Protocol Background: Velodrome, built on Andre Cronje's Solidly protocol, focuses on bootstrapping liquidity by aligning protocol emissions with generated fees.
• Launch Challenges: the team faced significant skepticism but remained committed to their vision.
• Funding Approach: opting for a model rooted in decentralization and community involvement.

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How It Works

Velodrome incentivizes sustainable protocol growth by rewarding participants based on their contributions.

• Minimal slippage for traders
• VELO emissions for liquidity providers
• 100% of fees go to voters

veVELO Voters

VELO holders can lock their tokens, becoming veVELO voters who decide how emissions are distributed. Voters are rewarded with protocol fees and additional incentives.

• Lock $VELO to convert to $veVELO
• Vote on emissions distribution
• Earn trading fees and incentives

Tokenomics

Velodrome Finance utilizes two tokens: $VELO (utility token) and $veVELO (governance token). VELO is distributed to LPs, while veVELO is used for governance and emission voting.

• Locking Mechanism: VELO holders can lock tokens for up to 4 years to maximize voting power, converting to veVELO NFTs. Longer lock durations increase voting weight.
• Permalocks: Velodrome v2 introduced permanent locks, where veVELO NFTs maintain full voting power without decaying, encouraging long-term commitment to governance.

Project Development

Velodrome is expanding its Superchain Beta, starting with a deployment on Mode and expanding across OP Stack Layer 2 chains. Velodrome will act as the central liquidity hub for the Superchain, providing liquidity for various ecosystems. Key partners, including Mode, BOB, and Lisk, will launch incentive campaigns, aligning with the Velodrome community.

• Superchain combines Ethereum's security with Layer 2 benefits
• Velodrome facilitates liquidity across specialized chains
• Over $2M in voting rewards and incentives planned
• TVL across Superchain surpasses $11.9 billion

Other Projects in the Finance Category

• Radiant Capital: an omnichain money market optimizing cross-chain liquidity using LayerZero technology.
• Onomy Protocol: a Layer 1 blockchain for a multichain DEX, bridging DeFi and Forex markets.
• Mt Pelerin Shares: represent shares of Mt Pelerin Group SA, offering direct ownership, voting, and dividend rights.

Velodrome Finance Price Analysis

As of November 24 2024 Velodrome Finance has a marketcap of $86M. This is {{percentagefromath}} from its all time high of $0.376238. In terms of its tokenomics, there's a total supply of 1.9B with 44% currently outstanding. Keep in mind Velodrome Finance has a fully diluted value of $193M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.