About Velodrome
Velodrome is Optimism's central trading and liquidity marketplace, implementing the ve(3,3) model pioneered by Andre Cronje's Solidly. Launched in June 2022, Velodrome solved Solidly's issues with carefully tuned tokenomics. Protocols bribe veVELO holders to direct VELO emissions to their pools, creating sustainable liquidity incentives aligned with actual trading activity. With just 0.02% fees on stable pools, Velodrome offers some of the cheapest swaps in DeFi. Slipstream introduced concentrated liquidity, while Relay automates voting strategies for passive veVELO holders.
Supported Blockchains
Features
Pros & Cons
Pros
- Lowest fees on Optimism
- Sustainable ve(3,3) emissions model
- Strong protocol partnerships
- veVELO governance power
Cons
- Optimism-only deployment
- Complex ve(3,3) mechanics
- Requires veVELO for governance
How Velodrome Works
Velodrome uses the ve(3,3) tokenomics model where veVELO holders vote weekly to direct VELO emissions to specific liquidity pools. Protocols bribe veVELO voters with tokens to attract votes for their pools, creating a sustainable flywheel: more bribes attract more votes, which attract more emissions, which attract more liquidity. LPs earn trading fees plus VELO rewards, while veVELO holders earn bribes plus a share of protocol fees. Slipstream adds concentrated liquidity for capital-efficient trading on high-volume pairs.
Getting Started with Velodrome
Visit velodrome.finance and connect your wallet on Optimism
Ensure you have ETH on Optimism for gas (use the official Optimism bridge)
Navigate to 'Swap' for token exchanges at ultra-low fees
Explore 'Liquidity' to provide LP and earn VELO emissions
Lock VELO for veVELO to participate in governance and earn bribes
Use 'Relay' to automate your voting strategy if holding veVELO