The platform serves as the liquidity hub within the Optimism ecosystem, providing liquidity providers with flexible trading and high efficiency. By locking VELO tokens, users receive veVELO NFTs, enabling them to vote on liquidity incentives and contribute to platform growth. It is a DeFi-focused AMM built on Web3 infrastructure with an NFT-based governance system. 

Team 

Velodrome Finance is managed by an anonymous team. Limited public information is available about the founders, though Alexander Cutler is a notable contributor. The project gained support from various communities and protocols at launch, with its strategic positioning on the Optimism network enhancing its ecosystem importance. 

Investors & Supporters 

Optimism Foundation: Largest strategic supporter, locking 35 million veVELO tokens to strengthen liquidity infrastructure. Provides multiple grants for open-source tool development and ecosystem growth. 

• Strategic Partnerships 

Frax Finance: Launch partner, early listing of $FRAX and $FXS pairs on Velodrome. 

Revest Finance (Resonate): Collaboration since September 2022, enabling LP positions tokenization as FNFTs and yield futures integration. 

Inverse Finance DAO: Deepened liquidity on Velodrome via “Velo Fed” and gained voting power with veVELO locking. 

• Protocol Partnerships 

Velodrome collaborates with numerous DeFi protocols within the Optimism ecosystem to provide capital-efficient liquidity and reinforce its role as the primary liquidity center. 

Project Concept 

Velodrome introduces innovative approaches to liquidity pools and swap mechanisms in DeFi. Combining the strengths of Curve, Convex, and Uniswap, it aims to offer users efficient token swaps and high-yield liquidity provision. 

How It Works 

Velodrome is based on two main tokens: VELO and veVELO. 

1. Liquidity Pools: Users provide liquidity by depositing tokens into pools, earning transaction fees and VELO emissions. 
2. veVELO (Governance Token): Obtained by locking VELO tokens, veVELO NFTs give holders voting rights on which pools receive more token emissions, directing liquidity where it’s most needed. 
3. Transaction Routing: Utilizes Optimism Layer-2’s low fees and high speeds for fast and economical user experience. 

Roadmap & Key Milestones 

• Launch (June 2022): Velodrome Finance officially launched on June 2, 2022. 
• Security Audits (2023): Underwent comprehensive audits by Spearbit in February and May 2023. 
• Velodrome V2 (June 2023): Released on June 22, 2023, adding concentrated liquidity, dynamic fees, and emission rates to enhance efficiency and user experience. 
• Upcoming 2025 Features: SoFinQ Trading Competition, Transact Cloud Integration, Profit Sharing, Tron Chain & Wallet Integration, B2B Crypto Partnership, Airline Industry Integration, New PayFi powered by AI. 
• Future Projects: AI Agent, PLG Token Listing, Yield Stable Coin Support, XRPL & Solana Chain Integration, Multi-Chain Wallet, Redesigned Web App, Trader Network Expansion, PayFai Infrastructure Expansion. 

What is the VELO Token? 

VELO is the native utility token of Velodrome Finance, operating on the Optimism network. It plays a vital role in liquidity mining, governance, and incentive mechanisms within the DeFi ecosystem. 

• Liquidity Mining: Users earn VELO rewards by providing liquidity to pools. 
• Governance: VELO holders can lock tokens to obtain veVELO governance NFTs, enabling participation in key protocol decisions. 
• Incentives & Ecosystem Support: VELO tokens are used to boost pool efficiency and fund grants for developers and partners. 

Token Details 

• Network: Optimism (Layer 2 Ethereum solution) 
• Total Supply: 2.17 billion (may be inflationary) 
• Circulating Supply: Approx. 915 million (variable) 
• Uses: Liquidity rewards, governance voting, protocol incentives 

Token Distribution (Total Supply: 400M VELO) 

• Community – 240M (60%) 
• $WEVE holders: 108M (27%) 
• Optimism users: 72M (18%) 
• Cross-chain DeFi users (Curve, Convex, Treasure DAO, Platypus, Redacted Cartel, Eminence Finance): 60M (15%) 
• Partner Protocols – 96M (24%) distributed via grants and partnerships to 10–15 strategic protocols 
• Velodrome Foundation – 40M (10%) fully locked as veVELO, earning 3% of emissions 
• Optimism – 20M (5%) locked as veVELO, given for ecosystem support 
• Genesis Liquidity Pools – 4M (1%) initially allocated to VELO–USDC pool at launch 

Ecosystem 

• Next-gen AMM combining Curve, Convex, and Uniswap strengths 
• Focused on Optimism network as primary liquidity hub 
• Incentives for liquidity providers (LPs) with VELO rewards 
• Community-driven governance via veVELO NFTs 
• Capital-efficient liquidity distribution to foster ecosystem growth 

Official Links

• Website 
• Twitter
• Medium 
• Discord 

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The post What is Velodrome Finance (VELO)? DeFi and NFT Governance appeared first on Coin Engineer.

What is Velo Protocol (VELO)? What Does It Aim For?

Velo Protocol aims to create a reliable bridge for financial transactions by integrating existing banking infrastructure and fiat currencies with a blockchain-based payment system. The goal is to establish a connection between traditional finance (TradFi) and decentralized finance (DeFi), developing a platform that ensures both regulatory compliance and user privacy. Velo’s Web3+ approach combines Web 2.0 and Web 3.0 technologies, facilitating the transition of existing economic activities to the blockchain world.

Velo addresses the shortcomings of slow and costly traditional systems, particularly in areas like cross-border transactions and remittances. Built on the Stellar Consensus Protocol, Velo processes transactions quickly and transparently using smart contracts. This provides a reliable financial infrastructure for users and businesses.

Velo Ecosystem and Features

Velo’s ecosystem is built around the VELO token and operates on the EVM (Ethereum Virtual Machine)-compatible Nova Chain. Nova Chain simplifies user interaction with decentralized applications (dApps) and uses NOVA tokens for gas fees. These tokens have no monetary value, and users can request NOVA through a faucet when their balance falls below a certain threshold. This makes the transition to the blockchain world easier, especially for new users.

Velo’s standout features include:

• Bridge Between TradFi and DeFi: Velo brings together traditional financial players like SEBA Bank, Asia Digital Bank, VISA, and iRemit with blockchain firms like Kyber Network and Finclusive. This enables the integration of both traditional and next-generation financial services.
• Low-Cost Transactions: Nova Chain’s low gas fees reduce user costs, making blockchain technology accessible to a wider audience.
• Decentralized Governance (DAO): Velo adopts a DAO system to strengthen community governance. VELO token holders can vote on matters such as project approvals or revenue sharing. For example, partnerships with Bybit support this governance model.
• Security and Compliance: Velo works with leading security firms like Inspect, PeckShield, and SlowMist to continuously test its infrastructure. Additionally, KYC/KYB (Know Your Customer/Know Your Business) and anonymous transaction chains balance regulatory compliance and user privacy.
• Revenue Sharing and Staking: VELO token holders can share in the revenue generated by ecosystem partners and earn additional rewards by staking their tokens.

Use Cases of the VELO Token

The VELO token is the cornerstone of the Velo ecosystem and serves various functions:

• Use as Collateral: VELO is used as collateral for digital credits, ensuring the security of transactions within the network.
• Ecosystem Access: VELO tokens are an entry requirement for users to benefit from Velo’s financial products and services.
• Value Transfer: VELO supports fast and low-cost value transfers within the network.
• Smart Contracts: Smart contracts supported by the Stellar Consensus Protocol ensure secure and transparent transaction processing.

Velo Identity Framework: Balancing KYC/KYB and Anonymity

One of Velo’s most notable features is the Velo Identity Framework, which combines KYC/KYB and anonymous transaction chains. This system offers a two-tiered structure:

• KYC/KYB Chain: Businesses and individuals join the network by verifying their identity and business information. This is ideal for financial institutions to quickly verify new customers.
• Anonymous Chain: Users can transact while preserving their privacy. For example, on an e-commerce platform, buyers can verify sellers’ KYC/KYB information while keeping their own identities confidential.

This structure ensures compliance with regulatory requirements while protecting user privacy and reducing fraud risk.

Storing Velo Tokens

There are several options for securely storing VELO tokens:

• Atomic Wallet: A wallet supporting over 1,000 cryptocurrencies, requiring no KYC.
• Hardware Wallets: Cold storage devices like Ledger or Trezor can store VELO offline, with integration possible via Stellar Term.
• Universe Wallet: Velo Labs’ own wallet, available on iOS and Android, connects with popular wallets like MetaMask without requiring KYC.
• Stellar Term: Another secure platform for managing VELO tokens.

VELO Tokenomics

• Development Reserve: Total Supply: 23.3%
• Community Development: Total Supply: 18.3%
• Strategic Partners: Total Supply: 18.3%
• Reserve: Total Supply: 16.7%
• Founders: Total Supply: 10%
• Early Backers and Advisors: Total Supply: 7.9%
• Private Placement: Total Supply: 4.88%
• Exchange Liquidity: Total Supply: 0.67%

Velo Strategic Partners and Investors

Velo is supported by strong strategic partnerships and investors. Partners include Cactus Custody, Copper, Inception, KogoPAY, Lightnet, SEBA, Stellar Development Foundation, and VISA.

Investors include prestigious firms such as C.P. Group, Du Capital, Everest Ventures Group, Hanwha, HashKey Capital, Signum Capital, Uni-President, UOB and LDA Capital.

Velo Team and Leadership

Velo’s leadership team consists of experienced names in finance and blockchain:

• Mike Kennedy (CEO): With over 25 years of experience in financial services and payment innovations, he previously served as CEO of Interstellar and North American President of OFX.

VELO Advisors

• Jed McCaleb: Co-Founder of the Stellar Development Foundation.
• Prof. David Mazières: Professor of Computer Science at Stanford University and Chief Scientist of the Stellar Development Foundation.
• Prof. Robert Townsend: Economics Professor at MIT, Carnegie Mellon, and the University of Chicago.
• John Ng Pangilinan: Founder of Signum Capital.
• Paul Veradittakit: Partner at Pantera Capital.

Official Links

• Velo Protocol (VELO) Website
• Velo Protocol (VELO) X (Twitter)
• Velo Protocol (VELO) Whitepaper

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