Velodrome Finance unveils Base-powered DeFi exchange ‘Aerodrome’

Leading exchange protocol Velodrome Finance has rolled out a new forked decentralized exchange Aerodrome which is powered by Base – Coinbase’s Layer 2 blockchain. The protocol is gearing up for release and is supported by 20 partners. Velodrome Finance runs on OP Mainnet and has emerged as one of the biggest DeFi exchanges in terms of revenue and total volume locked. Crypto users across the globe trust it for information about live cryptocurrency prices. 

Its TVL currently stands at $194 million. 

According to the Velodrome Finance team, with its new launch, the platform aims to capture a sizable portion of the value and liquidity exchange on the Base network. Velodrome Finance aims to do this by leveraging attractive DeFi incentives which will be called “flywheel”.

According to analysts, Velodrome enjoys a dominant status on the OP Mainnet because of its liquidity layers that are ecosystem-native. These layers have outperformed many interoperable exchanges that are frequented by patrons of the Top 10 cryptocurrencies. Velodrome Finance co-founder Alexander Cutler says the team wants to replicate the success achieved by the platform on OP Mainnet with the launch of Aerodrome as well.

What more is that the Aerodrome would incentivize its users by distributing airdropped crypto rewards. These rewards will be in terms of Aerodrome’s native cryptocurrency, the Aero token. The airdrop will be exclusively for those users who chose to lock or vote-escrow VELO tokens in exchange for veVELO crypto coins. While VELO is Velodrome Finance’s main utility token, veVELO is its governance token.

At the time of its launch, 40% of the Aero token’s total supply will be allocated for distribution among veVELO holders. 

About Velodrome Finance: 

Velodrome Finance has carved a niche for itself as a cutting-edge automated market maker that amalgamates the best features of popular DEXs like Uniswap, Convex, and Curve. The platform was initially designed to function as Optimism’s main liquidity source. NFT owners on Velodrome can vote for token emissions and earn fees. 

What stands out about the platform that is has something for all kinds of user groups. For instance, if you are a crypto trader, you can look forward to swapping tokens while paying a nominal fees to VELO lockers and with minimal slippage. Liquidity providers can earn with the platform by depositing their VELO tokens and earning token emissions as rewards. Another way crypto users can earn with Velodrome Finance is by offering incentives to veVELO voters and encouraging them to increase votes and VELO emissions. The move helps in infusing more liquidity in a cost-effective manner.

Lastly, veVELO token holders can earn crypto rewards by voting for pools that are most likely to fetch VELO emissions. In exchange, token holders can earn all incentives and fees for the pool that they voted for. All VELO token holders can easily lock their crypto coins and get them converted into veVELO tokens. The other popular features of the platform include a self-optimizing flywheel, anti-dilution rebases for voters, and liquid-locked positions as NFTs.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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