Velodrome protocol
Overview
Velodrome is the central trading and liquidity marketplace on the Optimism network, built on the ve(3,3) model in which emissions of the native VELO token are directed by token holders rather than fixed by the protocol. Users lock VELO to receive vote-escrowed veVELO positions and then vote each epoch on which liquidity pools receive VELO emissions; pools and projects can attach incentives to attract those votes, so emissions flow to wherever liquidity is most valued. Velodrome V2 was a full redesign of the protocol, launched on 15 June, aimed at a better end-user experience, stronger security and a simplified smart-contract architecture; holders of the original VELO could convert V1 tokens to V2 at a 1:1 ratio. The redesign laid the groundwork for customisable pool fees, concentrated liquidity pools and Relay, an automated veNFT management system. Velodrome's concentrated liquidity module, Slipstream, was reviewed by ChainSecurity and Sherlock in 2024 before launch. Velodrome launched as Optimism's flagship ve(3,3) liquidity marketplace and shipped V2 on 15 June with a rebuilt contract architecture and a 1:1 VELO migration. It later added the Slipstream concentrated liquidity module, audited by ChainSecurity and Sherlock in 2024. A sister deployment, Aerodrome, applies the same design on Base.
Within the DeFi Intel graph, Velodrome connects to 9 tracked entities, most strongly to Optimism, 0x Protocol, Odos.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 9 of 9 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Optimism | 85% |
aggregates | 0x Protocol | 85% |
aggregates | Odos | 85% |
aggregates | ParaSwap | 85% |
aggregates | 1inch | 85% |
aggregates | CoW Swap | 85% |
aggregates | Matcha | 85% |
forked_from | Aerodrome Slipstream | 85% |
forked_from | Solidly | 85% |
Frequently asked questions
What is Velodrome?
Velodrome is a spot-amm tracked in the DeFi Intel knowledge graph. It is connected to 9 other tracked entities, most strongly to Optimism, 0x Protocol, Odos.
What type of entity is Velodrome?
Velodrome is classified as a spot-amm (protocol) in the DeFi Intel knowledge graph.
What is Velodrome connected to?
In the DeFi Intel knowledge graph, Velodrome is linked to 9 other tracked entities, most strongly to Optimism, 0x Protocol, Odos.
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