by Velodrome
Quick Fact
Velodrome Finance employs a unique governance model using vote-escrowed NFTs (veVELO), allowing users to lock VELO tokens to gain voting power over protocol decisions and emissions. This model incentivizes long-term participation and aligns the interests of users with the platform's growth.
Velodrome Finance is a decentralized exchange (DEX) and automated market maker (AMM) purpose-built for the Optimism network. Inspired by models like Solidly and Curve, Velodrome introduces an optimized framework for trading, liquidity provision, and protocol governance—all with a focus on long-term sustainability and user alignment.
Velodrome allows users to swap tokens efficiently with minimal slippage and competitive fees. Liquidity providers earn rewards in VELO, the native token, and can boost their yield by participating in the platform’s unique governance mechanism through veVELO—vote-escrowed NFTs acquired by locking VELO.
With veVELO, users vote on which liquidity pools receive weekly VELO emissions, directing incentives where they’re most needed. Protocols can also offer “bribes” to veVELO holders, further aligning liquidity incentives with ecosystem growth.