News
US congressman says he bought Velodrome token – what is it?
In a move that aroused curiosity far beyond political circles, US Congressman Mike Collins (R-Georgia) disclosed a recent purchase of a cryptocurrency called Velodrome, worth $15,000.
O investment has put Velodrome – a relatively unknown cryptocurrency with a market capitalization of around $150 million – into the spotlight. The project’s VELO token is currently negotiation rose about 15% in 24 hours to 0.1169, according to CoinGecko.
Unlike established players like Bitcoin or Ethereum, Velodrome serves a specific niche in the world of cryptocurrencies: decentralized finance (DeFi) in layer 2 networks.
What is the Velodrome?
Financial Velodrome launched in June 2022, evolving from the Solidly project. Its goal was to support liquidity for DeFi protocols in Layer 2 solutions. The platform uses a “voting escrow” mechanism, combining concepts from Curve Finance and Olympus DAO, designed to incentivize long-term retention through staking, rebase and bonding.
The goal was to avoid some of the common problems in DeFi, using rewards to balance the protocol’s emissions with fees and avoiding the “farm and dump” scenario.
Velodrome offers a variety of liquidity pools, with reward rates determined by user voting. This setup aims to direct users to the most profitable pools, increasing liquidity and reducing slippage for traders.
The platform includes “stable pools” for low-volatility currencies and “variable pools” for high-volatility assets, providing a diversified trading environment. Additionally, Velodrome offers bribes to attract support for specific groups.
Velodrome Finance reports that it has undergone security audits and drives DeFi community engagement through initiatives like veDAO.
The VELO token
The VELO token is fundamental to the Velodrome ecosystem. The initial distribution included 400 million tokens, distributed among community members, partner protocols, the Velodrome team, and the Optimism team.
VELO holders receive transaction fees, bribes and rebase rewards.
VELO converts to veVELO when locked, allowing users to vote in pools and influence protocol decisions.
The Velodrome itinerary
Future plans laid out by Velodrome Finance include features such as automatic interest accrual, a Uniswap V3-based liquidity feature, metapool integration, and trading, lending, and borrowing of “veNFTs.”
Edited by Ryan Ozawa.