What is Velodrome? Velodrome solves problems related to accounts on Optimism’s birth system with incentives. So what is different about Velodrome compared to the AMM platforms on Optimism? Let’s find out together in the article below.
To better understand Velodrome, people can refer to some of the projects below such as:
- What is Optimism (OP)? Overview of Cryptocurrency Optimism
- What is DEX? The Role Of DEX In DeFi
- What is Layer 2? Complete Guide to Layer 2 Solutions
- What is Optimistic Rollup? Overview of Optimistic Rollup
Velodrome Overview
What is Velodrome?
Velodrome is an AMM-biased platform with ve(3,3) model (inspired by Stable Pool from Curve Finance, Andre Cronje’s Incentive & Liquidity Mining Solidly model, Uniswap V2 model for conventional assets and There are many upgrades compared to Solidly). The project will have 2 types of pools
- Stable Pool: For resource exchanges of equal value such as stablecoins, native resources and wrapped assets,…
- Volatile Pool: For regular Pools (any 2 tokens created, 1 liquidity pair).
Currently velodrome offers many different liquidity pairs such as USDC/sUSD, USDC/MAI, USDC/TUSD, WETH/ETH, OP/USDC, USDC/MIM, USDC/LUSD, WETH/USDC, sUSD/LUSD, USD+ / USDC .
What is the difference of Velodrome?
Velodrome’s improvement over Solidly is not in the operational mode, it is in the development and deployment mechanism token. There will be 4 variations on Velodrome’s model that are different from Solidly
- Typing Rewards with Emission: The protocol rewards that will be paid to veVELO holders will work similarly to Solidly. But with other protocols rewards will be sent back to veVELO holders at the start of a new decision. This balances rewards coming from the protocol root, Velodrome, and rewards coming from outside the protocol.
- Ensure productivity meter: In Solidly, Incentive is often abused by veTokens and sent to ineffective liquidity pools, leading to liquidity fragmentation and liquidity not reaching the places it needs to go. With Velodrome, they will have a tool to help detect the wrong actions of veVELOs.
- Prolonged decline in emissions: Token emissions compared to Solidly to be fair to both early adopters and early adopters.
- White-Glove support: Extract 1 share token to support individuals/organizations/projects contributing to the development of Velodrome.
Development Roadmap
The Velodrome has undergone many large and small changes, including notable changes such as:
- Launched Velodrome V2 is an update that changes the entire old face of Velodrome like Nightride dApp, Custom Pool Fees, Custom Pool Names and Symbols, Zapping into LPs, veNFT Artwork and Metadata, Permalocked veNFTs, Managed veNFTs, Velo FED, Improved veNFT Transfers, Streamlined Voting Rewards,… everyone can refer to the details about Velodrome V2 in the article Velodrome V2 And The First Results.
- Launched Aerodrome is Velodrome’s model AMM fork platform built and developed on the Base ecosystem.
- Velodrome continues to launch new products as its foundation cAMM targeting centralized liquidity for some trading pairs that Uniswap V3 on Optimism does not support.
Core Team
The Velodrome development team previously built veDAO to participate in Solidly’s ecosystem (which is a DEX developed by Andre Cronje on Fantom’s network with the ve trend (3.3).
In the early days of development veDAO collected $2.6B TVL equivalent to 10% voting rights with the Solidly project and collected about $1.1M in its tresury.
Investor
The project follows the ve (3,3) model so there will be no participation from investors or VCs.
Tokenomics
Basic information of Velo token
- Token name: Velodrome
- Code: VELO
- Blockchain: Optimism
- Token classification: ERC – 20
- Contract: 0x3c8b650257cfb5f272f799f5e2b4e65093a11a05
- Total supply: 400,000,000
Token allocation
- Community: 60%
- Partner Protocol/DAO: 24%
- Velodrome Team: 10%
- Optimism group: 5%
- Genesis liquidity pool: 1%
Token issuance
The initial emission from user incentive work and other project incentive activities is 15M tokens and will decrease after each epoch (each epoch on Velodrome corresponds to one week).
Token use cases
Velodrome has 2 types of tokens:
- VELO: Is a project code notification utility.
- veVELO: Is the governance token of the project and veVELO will be in the form of NFT (ERC-721).
To own veVELO, users need to lock their VELO for a maximum period of 4 years
- 100 VELO locked for a maximum of 4 years, users will receive 100 veVELO
- For 100 VELOs locked within 1 year, users will receive 25 veVELOs
Velodrome has creatively applied Curve Finance’s veToken model combined with the ve(3,3) model. Velodrome’s Use Case Token combines 2 points:
- Vote – Escrow: Is voting to see which pool will receive the most incentives from the project that the project learns from Curve Finance.
- Game Theory: Staking/Rebasing/Bongding which the project learns from Olympus DAO.
- On/off mode.
- Liquidity providers (LPs) will receive rewards issued by VELO.
The power holder will receive the fee collection protocol, have the right to manage the protocol, take advantage of their usage rights to vote on which pool receives the most incentives, thereby benefiting or allowing their management rights.
Exchanges
Velodrome is currently available on exchanges such as Velodrome and Uniswap (Optimism network).
Project Information Channel
- Website: https://www.velodrome.finance
- Twitter: https://twitter.com/VelodromeFi
- Medium: https://medium.com/@VelodromeFi
- Discord:
summary
Velodrome is an outstanding and potential AMM platform on the Optimism ecosystem. Obviously, Velodrome is one of the Hidden Gems in the Optimism ecosystem in the next cycle.
