Optimism-Based Velodrome Token Slides Nearly 8% Ahead of Major Upgrade
Velodrome’s upgrade is slated for June 15 and is a complete overhaul of the protocol.
Jun 5, 2023 at 2:24 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/64FORI3TQBAQJOTJ7YKQATDXNI.png)
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Takeaways
- Velodrome is upgrading to its second version, a complete software overhaul, on June 15.
- The price of VELO has dropped around 8% in the past 24 hours to $0.088 at press time.
Velodrome - the largest decentralized exchange (DEX) on layer 2 network Optimism (OP) - will upgrade June 15 to its second version, an entire redesign of the protocol aimed at improving end-user experience and security as well as simplifying smart-contract architecture.
The second iteration of Velodrome will include several new features, including a frontend that was rebuilt from scratch, customizable pool fees that allow for dynamic voting rewards and concentrated liquidity pools.
The price of VELO - the native utility token for Velodrome used to reward liquidity providers - has declined about 8% in the past 24 hours to 8.8 cents at press time, data from CoinGecko shows. Velodrome’s total value locked stands at more than $230 million, a roughly 4% decrease in the past week, per DefiLlama.
According to a blog post, the upgrade will provide “additional fuel to Velodrome’s flywheel through increased fee capture and setting a new standard for low-slippage and liquidity management.”
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Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.