Question 1

What is it?

Accepted Answer

Velodrome Finance is an advanced Automated Market Maker (AMM) combining features from Curve, Convex, and Uniswap. It's designed to function as the primary liquidity hub on the Optimism Network. Velodrome Finance employs a distinctive mechanism, referred to as the "flywheel," which facilitates protocols in building deep liquidity in a capital-efficient way by guiding VELO emissions to their pools. The initial launch of Velodrome Finance occurred on 2 June 2022, followed by a comprehensive protocol redesign leading to the launch of Velodrome V2 on 22 June 2023.

Question 2

What is it used for?

Accepted Answer

Velodrome Finance's primary function is to enable token swaps and attract liquidity, thereby generating fees from traders. In this ecosystem, Liquidity Providers (LPs) are awarded VELO token emissions based on the votes accumulated by their pools, with the stipulation that only staked liquidity in the protocol gauges receives these emissions. Participants have the option to lock their VELO to become veVELO Voters, who play a critical role in determining the allocation of emissions for subsequent epochs. These voters are compensated with a share of the protocol's trading fees and additional incentives linked to their voting activities.

***Although 'VELO' was the ticker assigned at the deployment of the Velodrome Finance token's smart contract, it is in use by another asset that has a larger market presence and higher trading volume on major exchanges. Due to this association and to avoid confusion in the marketplace, the alternative ticker 'VELOD' has been adopted for this token. This designation is specifically used to ensure that assets are distinctly identified.***

#	Instrument	Exchange	Benchmark Score	Price	24h Change	24h Volume	24h Trades	24h Open	24h High
1	VELOD-USDT VELODROMEUSDT	binance	AA	0.03030USDT	1.03%	23,341,660.00VELOD	12,635	0.02999USDT	0.03123USDT
2	VELOD-USD VELO-USD	coinbase	AA	0.03031USD	1.03%	5,723,209.70VELOD	593	0.03000USD	0.03122USD
3	VELOD-USDT VELODROME-USDT	okex	A	0.03026USDT	1.07%	1,368,736.71VELOD	728	0.02994USDT	0.03124USDT
4	VELOD-USDT VELODROME_USDT	gateio	A	0.03023USDT	0.97%	1,084,858.15VELOD	1,351	0.02994USDT	0.03101USDT
5	VELOD-USD VELODROMEUSD	kraken	AA	0.03038USD	1.23%	129,704.74VELOD	51	0.03001USD	0.03114USD
6	VELOD-EUR VELODROMEEUR	kraken	AA	0.02669EUR	1.25%	74,541.03VELOD	7	0.02636EUR	0.02705EUR
7	VELOD-USD VELODROME_USD	cryptodotcom	AA	0.03025USD	-0.88%	58,159.00VELOD	122	0.03052USD	0.03112USD
8	VELOD-USD VELODROME-USD	okex	A	0.03025USD	0.77%	40,395.28VELOD	27	0.03002USD	0.03100USD
9	VELOD-USDT velodrome_usdt	lbank	C	0.03026USDT	0.93%	15,862,316.20VELOD	83,175	0.02998USDT	0.03120USDT
10	VELOD-USDT velodromeusdt	huobipro	C	0.02360USDT	-0.42%	6,269,705.56VELOD	2,589	0.02370USDT	0.02500USDT
11	VELOD-USDT VELODROMEUSDT	toobit	C	0.03024USDT	0.73%	4,436,627.60VELOD	7,498	0.03002USDT	0.03119USDT
12	VELOD-USDT VELODROME_USDT	bitunix	C	0.03027USDT	0.93%	2,660,307.40VELOD	6,901	0.02999USDT	0.03120USDT
13	VELOD-USDT VELODROMEUSDT	mexc	C	0.03027USDT	0.93%	2,263,874.44VELOD	3,107	0.02999USDT	0.03122USDT
14	VELOD-USDC VELODROMEUSDC	mexc	C	0.03032USDC	1.13%	1,784,435.79VELOD	2,958	0.02998USDC	0.03122USDC
15	VELOD-THB THB_VELO	bitkub	C	0.9981THB	-0.88%	1,068,232.86VELOD	128	1.01THB	1.03THB
16	VELOD-USDT velo_usdt	digifinex	D	0.03027USDT	0.93%	666,359.50VELOD	4,957	0.02999USDT	0.03122USDT
17	VELOD-EUR VELODROMEEUR	bit2me	B	0.02669EUR	1.25%	74,541.03VELOD	7	0.02636EUR	0.02705EUR
18	VELOD-IDR velodromeidr	indodax	E	533.00IDR	0.57%	55,776.23VELOD	69	530.00IDR	654.00IDR
19	VELOD-KRW velo_krw	korbit	C	21.00KRW	0.00%	0VELOD	0	21.00KRW	21.00KRW
20	VELOD-USDT VELOUSDT	coinex	C	0.03030USDT	0.86%	18,497.15VELOD	1,415	0.03005USDT	0.03118USDT