DeFi
Velar (VELAR) integrates Bitcoin with DeFi via the Stacks blockchain
Velar, a decentralized finance (DeFi) liquidity protocol, leverages Bitcoin security through an agnostic Layer 2 approach, initially using the Stacks blockchain and Clarity smart contract language. According to Bitfinex, Velar is designed to integrate the fundamental strength of Bitcoin with advanced DeFi capabilities, rolling out in strategic phases to introduce sophisticated solutions such as automated liquidity protocols and decentralized perpetual contract trading with leverage up to at 20X.
DeFi on Bitcoin via Velar and the Stacks Bitcoin Layer Two
Velar’s primary goal is to leverage the strength and security of Bitcoin through an agnostic layer 2 approach. Using the Stacks blockchain and Clarity smart contract language, Velar seeks to merge the fundamental robustness of Bitcoin with the dynamic capabilities of DeFi. As a leader in the Bitcoin DeFi space, Velar is designed to support a range of financial applications, from simple swaps and liquidity pools to advanced offerings such as staking, farming and onramps. Launch of the Initial DEX Offering (IDO).
Velar’s development is structured into four strategic phases. The inaugural phase, “Dharma,” demonstrated the platform’s potential by launching an automated liquidity protocol. This phase included features such as Swap, Liquidity Pools, Staking, Farming and IDO Launchpad, attracting significant attention and participation with over 150,000 users during its testnet phase. This early success laid a solid foundation for Velar’s ambitious roadmap.
Building on this foundation, Velar’s next major milestone is the “Artha” phase, which will introduce the world’s first decentralized perpetual contracts exchange with Bitcoin finality, offering up to 20X leverage. This feature is poised to revolutionize the DeFi community by enabling leveraged trading within the secure and trusted framework of Bitcoin. Velar’s Layer 2 agnostic design ensures future compatibility between various Layer 2 Bitcoin solutions, promising a flexible and scalable platform capable of adapting to continued advancements in blockchain technology.
Velar’s broader vision is to seamlessly integrate native Bitcoin liquidity with advanced DeFi services, creating a new paradigm in the financial ecosystem. Backed by strong investment support and strategic alliances with key Bitcoin Layer 2 solutions, Velar is well-positioned to redefine the intersection of Bitcoin and decentralized finance. By offering a comprehensive suite of financial applications, Velar aims to drive innovation, improve market liquidity, and drive greater adoption of DeFi over Bitcoin, paving the way for a more inclusive and decentralized financial future.
What is VELAR token
The VELAR token is the native utility token of the Velar DeFi liquidity protocol, designed to serve as the backbone of its ecosystem. It plays a crucial role in encouraging participation, providing liquidity, and facilitating various activities within the Velar platform. As a fundamental part of Velar, the VELAR token allows users to engage in a wide range of DeFi operations, ensuring the smooth functioning and growth of the protocol. With a total supply of 1 billion tokens, VELAR is distributed to support community rewards, treasury reserves, founding team, advisors, early buyers, and airdrops.
One of the primary use cases for the VELAR token is to incentivize liquidity providers. Users who lock their assets into Velar’s liquidity pools are rewarded with VELAR tokens, fostering an active and liquid market. This incentive mechanism is vital to maintaining the efficiency and attractiveness of the Velar DEX and other DeFi applications. By providing liquidity, users contribute to the overall functionality and stability of the platform, ensuring that there are sufficient assets available for trading and other activities.
Additionally, the VELAR token is used to access premium features and services in the Velar ecosystem. For example, users can stake their VELAR tokens to receive various benefits, such as reduced trading fees, early access to new platform features, and participation in exclusive incentivized testnets. Staking VELAR tokens is also a prerequisite for participating in the IDO on the Velar Launchpad. Depending on the number of tokens staked, users receive IDO tickets which allow them to invest in new projects launched on the platform. This staking mechanism helps build an engaged and committed community, rewarding long-term supporters with tangible benefits.
The VELAR token plays an important role in Velar’s governance model. Token holders have the power to participate in important decision-making processes that shape the future of the platform. Through governance, users can vote on proposals related to protocol upgrades, new feature implementations, and other critical aspects of Velar development. This decentralized approach ensures that the platform evolves in a way that reflects the collective interests of its community, promoting transparency and inclusiveness. By involving token holders in governance, Velar fosters a more democratic and user-focused ecosystem, allowing its community to directly influence the direction of the project.
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