Today we look at Velodrome, a coin I bought 8 times!
The Velodrome project, its token Velodrome coin, has performed very well in the past month, rising by 271%+ in 30 days. It has now fallen back to $0.1795. The current market value of Velodrome coin has reached $159 million, ranking 352nd in market value. Let's take a look at what Velodrome is all about!
Introduction
Velodrome Finance (VELO) emerges as a groundbreaking automated market maker (AMM) that combines the strengths of Curve, Convex, and Uniswap. It serves as the liquidity center of Superchain and is at the forefront of decentralized finance. Velodrome's unique approach involves voting on NFTs that decide on token issuance, enabling participants to earn incentives and fees generated by the protocol.
Running on the Optimism network, Velodrome Finance represents the next step in the evolution of the Solidly Exchange model, originally introduced by Andre Cronje. This strategic positioning on Optimism increases transaction speeds and reduces costs, making it an attractive option for traders and liquidity providers.
Velodrome’s governance model is particularly noteworthy. By integrating NFTs into its ecosystem, it enables users to directly participate in the operation of the protocol, fostering a community-driven environment. The model not only incentivizes participation, but also aligns the interests of stakeholders with the growth of the platform.
In the context of a broader cryptocurrency investment strategy, Velodrome Finance offers staking and liquidity provision opportunities that fit a variety of risk appetites and investment objectives. Its innovative design and strategic network selection highlight its potential as a key player in the decentralized finance space.
Practical application of the project
Velodrome Finance (VELO) has emerged as a key player in the decentralized finance (DeFi) space, especially on the Optimism Network. As an automated market maker (AMM), Velodrome acts as a central exchange and liquidity marketplace, facilitating seamless token swaps and liquidity provision. The platform serves as Superchain's liquidity hub, allowing protocols to build deep liquidity in a capital-efficient manner. By enabling token swaps, the fees generated by Velodrome benefit liquidity providers, creating a dynamic ecosystem for traders and investors.
A standout feature of Velodrome is its ability to integrate tokens and provide incentives to veVELO voters. This mechanism attracts votes and VELO emissions to specific pools, enhancing liquidity and encouraging active community participation. Additionally, Velodrome’s decentralized exchange functionality provides users with high-yield investment opportunities, making it an attractive option for those looking to maximize returns in the DeFi space.
Velodrome has also played a key role in attracting new users to the Optimism Network. By providing a user-friendly platform and powerful trading and liquidity services, it has helped expand the reach and adoption of decentralized financial solutions. VELO’s utility as a token extends to liquidity providers, who can use it for a variety of purposes within the ecosystem.
In summary, Velodrome Finance stands out as a versatile platform with multiple real-world applications, from acting as a liquidity hub and decentralized exchange to providing utility as a high-yield investment program and liquidity provider. Its integration with the Optimism Network further solidifies its position as a key player in the DeFi space, providing innovative solutions for individual users and large protocols.
Velodrome Token Economic Model
Maximum supply: 1.95 billion
Unlocked 45.5%
Token Allocation:
Token unlocking:
Weekly emissions start at 15M (3.75% of initial supply) on June 4, 2022, decaying at 1% per week (epoch). $VELO
With the release of version v2 on June 22, 2023, emissions were reset back to 15M.
This stupid unlocking is interesting: currently the weekly unlocking rate is 0.4%, which is 1.6% per month, but we can also see from the picture that the unlocked tokens may also be locked, with the longest lock-up period being 4 years, and the average lock-up on the chain is 3.65 years, which means that 54% of the coins are still locked on the chain. Therefore, even if they are unlocked, there are still 50% of the tokens to be unlocked. At present, fewer and fewer people are locked, but as the project develops, this situation may change. At present, the selling pressure is not large and the market value is low enough!
Project Ecosystem
Let’s take a look at TVL first:
Compared with the TVL at the beginning of the year, it has declined, but the bull market has not come yet. I believe that once hot money comes in and liquidity increases, the copycats will also go wild!
Currently, Velodrome ranks third in the OP chain and is also a first-tier project!
Cumulative transaction volume increased from US$7.5 billion at the beginning of 2024 to US$22.6 billion.
Summarize
Compared with centralized trading platforms, the advantages of Dexs lie in the privacy and autonomy brought by the absence of asset custody, the composability of the overall DeFi ecosystem, and the ease with which Dexs can become the initial source of liquidity for emerging projects. It is also the basic liquidity layer for the entire Web3 business world.
After the Velodrome V2 upgrade, custom transaction fees are allowed, which in turn increases transaction fees. For example, the transaction fee ratio of the VELO/USDC trading pair was 0.05% before, but now it is 1%. Currently, the transaction pair can contribute more than US$500,000 in transaction fees per week.
As the leading application of the Four Heavenly Kings OP chain, there is still a lot of room for growth. When Ethereum is upgraded next year, the Four Heavenly Kings will also be reborn, and the projects under their names will also usher in a shining moment!
The current price of this token can be increased. I have sold half of it at the highest point and earned 8 times. At present, I have started to buy again after it fell back from the high point. I am still quite confident in this project. I will continue to buy and keep paying attention!
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