Hi everyone,

Today's article will analyze Velodrome- the number one TVL on Optimism. **“What is Velodrome?” and “Does Velo Worth Investing”. **Let’s get into it.

What Is Velodrome Finance?

Velodrome Finance is a decentralized exchange that is built on Optimism. It is building and developing with the concept and codebase of Solidly- a well-known AMM with ve(3,3) model on Fantom.

The team behind Velodrome previously created veDAO- the number 1 project with ve(3,3) mechanism on Fantom.

Some Notable Points of Velodrome Finance

• Velodrome combines two mechanisms, which are “Vote- Escrow Token” and “(3,3) game theory ( Olympus DAO mechanism)”. Therefore, Velo will incentive holders to hold more Velo and avoid low liquidity.
• Bribes feature: Allow users to use their money and then “bribe” veVelo holders. You may question **why users want to “bribe”?. **The answer is easy, veVelo holders have rights to vote for their favorite pools, “The more voted, the more reward pool has”

Velodrome Products

AMM

One of the best features of Velo- AMM. Velodrome Finance is confident in claiming that their AMM is one of the AMMs with small slippage, low transaction fees, and high reward from ve(3,3) mechanism.

As of the time of writing, Velodrome AMM supports up to 500 pairs, making it one of the more diversified trading platforms. Expanding the options available to people on Optimism when they search for AMM trading.

Liquidity Pool

Velodrome has multiple hundred liquidity pools as a result of using the Solidly concept. As I previously said, the more veVelo holders vote for the pools, the more reward pool has, which draws more attention from liquidity providers.

The more people provide liquidity, the more liquidity pool will have. Therefore, reduce slippage when trading, creating a positive loop for the project, the trader, veVelo holders, and Velodrome itself.

What Is Velo Token?

Velodrome Finance has 2 types of tokens:

• Velo: Velodrome Finance’s native token
• veVelo: You will receive when locking Velo. This is the token used for voting and administrating protocol.

Tokenomics

Token Key Metric

• Token name: Velodrome Finance
• Ticker: Velo
• Blockchain: Optimism
• Token contract: 0x3c8b650257cfb5f272f799f5e2b4e65093a11a05
• Circulating Supply: 174,753,212
• Total Supply: 866,946,919

Token Allocation

Velo Distribution

• Community: 60%
• Partners: 24%
• Developers: 10%
• Optimism Team: 5%
• Genesis Protocol: 1%

According to the Velodrome team, Optimism has been supported a lot. Therefore, the Optimism team will receive 5% of Velo distribution.

Releasing Schedule

60% of Velo distributed through the community will mostly be unlocked, and 24% of partners will be locked as veVelo. The remaining 10% of tokens for developers will have the following distribution schedule:

• 15,520,816 VELO will be distributed over 12 months, consisting of 6 months of locking by veVelo and 6 months of linear distribution.
• 7,200,000 VELO distributed over 24 months, including 12 months of locking by veVelo and 12 months of linear distribution.
• 3% of VELO inflation will be distributed over 6 months, consisting of 3 months locked by veVelo and 3 months of linear distribution.

Roadmap

Currently, Velodrome Finance has not announced its official roadmap yet but here is an overview of the past event:

• **6/2022: **Velodrome Finance released its mainnet
• 8/2022: A member of Velodrome- Gabagool, who withdrew 350,000 USD from the project.

12/2022: Introduce Velodrome 2.0 and will introduce these features in 2023:

• Concentrated Liquidity
• Metapool
• Trading veNFT
• veNFT borrowing and lending

Partners and Backers

The Optimism team provided a lot of assistance for the Velo project during its development to enable Velodrome to occupy the top DEX position on layer 2.

Moreover, the project did not open for public sale.

Source: Coin98.net

Personal Opinions

After finishing the basic information, I am going to share my perspective on this project and does it is worth invest.

1. The project currently has a low FDV which is $151,260,501
2. Has not been listed on any major exchange yet and this is the highest TVL DEX on Optimism. ( You can take the example of another DEX on Arbitrum)
3. The TVL is currently increasing and now is at $315 million
4. At the time of writing, the whale is collecting at the price of $0.15– $0.17, which currently their value of holding VELO is $400,000.

Conclusion

This is the end of my article, this article is from my perspective only, but I hope it helps you in the near future.

Goodbye and see you in the next article.