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Getting Started
Velodrome Finance is a next-generation automated market maker (AMM) and decentralized exchange (DEX) built on the Optimism network. It serves as the central liquidity hub of the Superchain, combining the best mechanics from Curve, Convex, and Uniswap into a unified, battle-tested platform.
Velodrome Finance enables users to swap tokens at low fees, deposit tokens into liquidity pools to earn rewards, lock VELO tokens to receive voting power (veVELO), and vote on pool emissions each week. 100% of trading fees and incentives flow directly to active participants — no value is extracted by a founding team or VC investors.
Velodrome Finance enables users to swap tokens at low fees, deposit tokens into liquidity pools to earn rewards, lock VELO tokens to receive voting power (veVELO), and vote on pool emissions each week. 100% of trading fees and incentives flow directly to active participants — no value is extracted by a founding team or VC investors.
Velodrome Finance is deployed on OP Mainnet (Optimism), an Ethereum Layer 2 rollup that offers significantly lower transaction fees and faster finality compared to Ethereum mainnet. To interact with Velodrome Finance, you need a compatible Web3 wallet (such as MetaMask, Rabby, or Coinbase Wallet) configured for the Optimism network.
As Velodrome Finance expands its MetaDEX vision, it also supports interoperability across the broader Superchain ecosystem, meaning liquidity and routing can span multiple OP Stack chains.
As Velodrome Finance expands its MetaDEX vision, it also supports interoperability across the broader Superchain ecosystem, meaning liquidity and routing can span multiple OP Stack chains.
To connect your wallet:
1. Navigate to velodrome.finance using a browser with a Web3 wallet extension installed.
2. Click the Connect Wallet button in the top-right navigation bar.
3. Select your preferred wallet provider from the list (MetaMask, WalletConnect, Coinbase Wallet, etc.).
4. Approve the connection in your wallet.
5. Ensure your wallet is set to the Optimism network. If not, Velodrome Finance will prompt you to switch.
Once connected, your wallet address and balances will appear in the interface. No registration or KYC is required.
1. Navigate to velodrome.finance using a browser with a Web3 wallet extension installed.
2. Click the Connect Wallet button in the top-right navigation bar.
3. Select your preferred wallet provider from the list (MetaMask, WalletConnect, Coinbase Wallet, etc.).
4. Approve the connection in your wallet.
5. Ensure your wallet is set to the Optimism network. If not, Velodrome Finance will prompt you to switch.
Once connected, your wallet address and balances will appear in the interface. No registration or KYC is required.
Velodrome Finance has undergone multiple independent security audits from reputable firms. The protocol's smart contracts are immutable and permissionless — meaning no admin key can upgrade or pause them unilaterally. This design philosophy eliminates single points of failure and makes the protocol more resilient long term.
All audit reports are publicly available on the Velodrome Finance documentation site. That said, DeFi always carries inherent smart contract risk. Only interact with assets you can afford to lose, and always verify you are on the official domain before connecting your wallet.
All audit reports are publicly available on the Velodrome Finance documentation site. That said, DeFi always carries inherent smart contract risk. Only interact with assets you can afford to lose, and always verify you are on the official domain before connecting your wallet.
Swapping
Swapping on Velodrome Finance is straightforward:
1. Go to the Swap page.
2. Select the token you want to sell in the top field (e.g. ETH).
3. Select the token you want to buy in the bottom field (e.g. VELO).
4. Enter the amount. The interface will automatically find the best route across Velodrome Finance's pool types.
5. Review the estimated output, price impact, and fees. Adjust slippage tolerance if needed.
6. Click Swap and confirm the transaction in your wallet.
Velodrome Finance routes trades across Stable, Volatile, and Concentrated Liquidity pools to find the most efficient execution path for your trade.
1. Go to the Swap page.
2. Select the token you want to sell in the top field (e.g. ETH).
3. Select the token you want to buy in the bottom field (e.g. VELO).
4. Enter the amount. The interface will automatically find the best route across Velodrome Finance's pool types.
5. Review the estimated output, price impact, and fees. Adjust slippage tolerance if needed.
6. Click Swap and confirm the transaction in your wallet.
Velodrome Finance routes trades across Stable, Volatile, and Concentrated Liquidity pools to find the most efficient execution path for your trade.
Velodrome Finance supports three primary pool types:
Stable Pools (x+y=k): Designed for pegged or correlated assets like USDC/USDT or wETH/stETH. They provide minimal slippage when swapping between assets that should trade near 1:1.
Volatile Pools (x*y=k): Standard constant-product AMM pools for uncorrelated token pairs. Best for pairs like ETH/VELO or OP/USDC.
Concentrated Liquidity Pools (CL): Modeled after Uniswap v3, these allow liquidity providers to concentrate capital within specific price ranges, maximizing capital efficiency and fee earnings for active LPs.
Stable Pools (x+y=k): Designed for pegged or correlated assets like USDC/USDT or wETH/stETH. They provide minimal slippage when swapping between assets that should trade near 1:1.
Volatile Pools (x*y=k): Standard constant-product AMM pools for uncorrelated token pairs. Best for pairs like ETH/VELO or OP/USDC.
Concentrated Liquidity Pools (CL): Modeled after Uniswap v3, these allow liquidity providers to concentrate capital within specific price ranges, maximizing capital efficiency and fee earnings for active LPs.
Trading fees on Velodrome Finance vary by pool type and are set by governance. Typical fee ranges:
— Stable pools: 0.01% – 0.05%
— Volatile pools: 0.2% – 1%
— Concentrated Liquidity pools: multiple fee tiers (0.01%, 0.05%, 0.3%, 1%)
Crucially, 100% of swap fees collected in each pool are distributed to veVELO voters who allocated votes to that pool in the current epoch. This creates a direct incentive for voters to direct emissions toward pools with real trading activity.
— Stable pools: 0.01% – 0.05%
— Volatile pools: 0.2% – 1%
— Concentrated Liquidity pools: multiple fee tiers (0.01%, 0.05%, 0.3%, 1%)
Crucially, 100% of swap fees collected in each pool are distributed to veVELO voters who allocated votes to that pool in the current epoch. This creates a direct incentive for voters to direct emissions toward pools with real trading activity.
Slippage is the difference between the expected price of a swap and the actual execution price. It occurs because the pool's ratio of assets changes between the moment you sign a transaction and when it is confirmed on-chain.
For most swaps on Velodrome Finance, a slippage tolerance of 0.5% works well. For stable pool swaps (stablecoins), 0.1% is usually sufficient. For illiquid or volatile tokens, you may need to increase it to 1–3%.
Setting slippage too low may cause transactions to fail; setting it too high increases your exposure to front-running bots. Velodrome Finance's interface automatically suggests appropriate slippage based on the pool type.
For most swaps on Velodrome Finance, a slippage tolerance of 0.5% works well. For stable pool swaps (stablecoins), 0.1% is usually sufficient. For illiquid or volatile tokens, you may need to increase it to 1–3%.
Setting slippage too low may cause transactions to fail; setting it too high increases your exposure to front-running bots. Velodrome Finance's interface automatically suggests appropriate slippage based on the pool type.
Providing Liquidity
To provide liquidity on Velodrome Finance:
1. Navigate to the Liquidity page.
2. Browse or search for a pool you want to participate in.
3. Click Deposit on your chosen pool.
4. Enter the amount of each token you wish to deposit. For volatile and stable pools, both tokens must be deposited in the current pool ratio.
5. Approve token spending and confirm the deposit transaction.
6. After depositing, you will receive LP tokens representing your share of the pool. Stake these LP tokens in the corresponding gauge to begin earning VELO emissions.
1. Navigate to the Liquidity page.
2. Browse or search for a pool you want to participate in.
3. Click Deposit on your chosen pool.
4. Enter the amount of each token you wish to deposit. For volatile and stable pools, both tokens must be deposited in the current pool ratio.
5. Approve token spending and confirm the deposit transaction.
6. After depositing, you will receive LP tokens representing your share of the pool. Stake these LP tokens in the corresponding gauge to begin earning VELO emissions.
Impermanent loss (IL) occurs when the price ratio of a token pair in a pool changes after you deposit liquidity, resulting in a lower dollar value compared to simply holding the tokens.
— Stable pools have very low IL because the tokens are pegged to similar values.
— Volatile pools can experience significant IL if one token's price moves sharply relative to the other.
— Concentrated Liquidity pools can amplify IL when the price moves out of your chosen range.
Velodrome Finance mitigates IL through VELO token emissions to gauges, which reward LPs even during periods of price divergence. High-APR pools may more than compensate for impermanent loss over time.
— Stable pools have very low IL because the tokens are pegged to similar values.
— Volatile pools can experience significant IL if one token's price moves sharply relative to the other.
— Concentrated Liquidity pools can amplify IL when the price moves out of your chosen range.
Velodrome Finance mitigates IL through VELO token emissions to gauges, which reward LPs even during periods of price divergence. High-APR pools may more than compensate for impermanent loss over time.
A gauge is a smart contract associated with each liquidity pool that distributes VELO token emissions to LPs who stake their LP tokens.
Each epoch (week), veVELO voters decide how much of the total VELO emission is directed to each pool's gauge. Pools with more votes receive more VELO rewards.
To earn VELO:
1. Deposit tokens into a pool to receive LP tokens.
2. Navigate to the pool's gauge page.
3. Stake your LP tokens in the gauge.
4. VELO rewards accrue in real time and can be claimed at any time.
Each epoch (week), veVELO voters decide how much of the total VELO emission is directed to each pool's gauge. Pools with more votes receive more VELO rewards.
To earn VELO:
1. Deposit tokens into a pool to receive LP tokens.
2. Navigate to the pool's gauge page.
3. Stake your LP tokens in the gauge.
4. VELO rewards accrue in real time and can be claimed at any time.
Withdrawing liquidity from Velodrome Finance has no lock-up period — you can exit at any time:
1. If your LP tokens are staked in a gauge, first unstake them from the gauge page.
2. Go to the Liquidity page and find your position.
3. Click Withdraw and enter the amount of LP tokens to redeem.
4. Confirm the transaction. Your underlying tokens will be returned to your wallet at the current pool ratio.
Note that the amounts returned may differ from what you deposited due to trading activity and any impermanent loss that occurred during your LP period.
1. If your LP tokens are staked in a gauge, first unstake them from the gauge page.
2. Go to the Liquidity page and find your position.
3. Click Withdraw and enter the amount of LP tokens to redeem.
4. Confirm the transaction. Your underlying tokens will be returned to your wallet at the current pool ratio.
Note that the amounts returned may differ from what you deposited due to trading activity and any impermanent loss that occurred during your LP period.
Voting & Locking
veVELO (vote-escrowed VELO) is a non-transferable NFT you receive when you lock VELO tokens for a set duration. It represents your governance and economic power within the Velodrome Finance protocol.
To obtain veVELO:
1. Acquire VELO tokens by swapping or claiming rewards.
2. Go to the Lock page on Velodrome Finance.
3. Choose an amount of VELO to lock and a lock duration (up to 4 years).
4. Confirm the transaction. You will receive a veVELO NFT in your wallet.
The amount of veVELO (voting power) you receive is proportional to the VELO locked × the lock duration. A maximum 4-year lock gives you 1 veVELO per VELO. Voting power decays linearly as the lock approaches expiry.
To obtain veVELO:
1. Acquire VELO tokens by swapping or claiming rewards.
2. Go to the Lock page on Velodrome Finance.
3. Choose an amount of VELO to lock and a lock duration (up to 4 years).
4. Confirm the transaction. You will receive a veVELO NFT in your wallet.
The amount of veVELO (voting power) you receive is proportional to the VELO locked × the lock duration. A maximum 4-year lock gives you 1 veVELO per VELO. Voting power decays linearly as the lock approaches expiry.
Every week (epoch), veVELO holders vote on which liquidity pools should receive VELO token emissions. Here's how it works:
1. Go to the Vote page on Velodrome Finance.
2. Allocate your voting power across one or multiple pools.
3. Each pool gauge receives VELO emissions proportional to the share of total votes it received.
In return, voters earn:
— 100% of trading fees from the pools they voted for.
— Incentives (bribes) paid by protocols that want to attract liquidity to their pools.
— Weekly rebase to offset dilution from new VELO emissions.
Votes must be cast each epoch. Uncast votes do not carry forward.
1. Go to the Vote page on Velodrome Finance.
2. Allocate your voting power across one or multiple pools.
3. Each pool gauge receives VELO emissions proportional to the share of total votes it received.
In return, voters earn:
— 100% of trading fees from the pools they voted for.
— Incentives (bribes) paid by protocols that want to attract liquidity to their pools.
— Weekly rebase to offset dilution from new VELO emissions.
Votes must be cast each epoch. Uncast votes do not carry forward.
Early unlock: Standard veVELO locks cannot be unlocked before the chosen expiry date. You must wait until the lock expires to reclaim your VELO tokens. You can, however, extend the lock duration at any time to increase voting power.
Transferability: veVELO NFTs are non-transferable by default (they cannot be freely sent to another address). However, they can be used as collateral or managed via certain DeFi protocols that integrate with the Velodrome Finance ecosystem.
Merge & Split: Velodrome Finance allows holders to merge multiple veVELO NFTs into one (combining their locked balances) or split a single veVELO NFT into multiple smaller positions.
Transferability: veVELO NFTs are non-transferable by default (they cannot be freely sent to another address). However, they can be used as collateral or managed via certain DeFi protocols that integrate with the Velodrome Finance ecosystem.
Merge & Split: Velodrome Finance allows holders to merge multiple veVELO NFTs into one (combining their locked balances) or split a single veVELO NFT into multiple smaller positions.
Incentives (colloquially called bribes) are token rewards paid by external protocols to veVELO holders in exchange for directing votes toward specific pool gauges.
For example, a protocol that wants deep liquidity for its token can deposit incentives in USDC or their own token into the Velodrome Finance incentive contract. veVELO holders who vote for that pool receive a proportional share of those incentives at the end of the epoch.
This creates a competitive marketplace for liquidity: protocols pay for votes, voters earn fees + incentives, and LPs earn VELO emissions — aligning everyone's incentives around genuine liquidity provision on Velodrome Finance.
For example, a protocol that wants deep liquidity for its token can deposit incentives in USDC or their own token into the Velodrome Finance incentive contract. veVELO holders who vote for that pool receive a proportional share of those incentives at the end of the epoch.
This creates a competitive marketplace for liquidity: protocols pay for votes, voters earn fees + incentives, and LPs earn VELO emissions — aligning everyone's incentives around genuine liquidity provision on Velodrome Finance.
Tokenomics & VELO
VELO is the native governance and reward token of the Velodrome Finance protocol. Its primary utilities are:
— Liquidity Incentives: VELO is emitted each epoch to LP gauges, rewarding liquidity providers.
— Locking: VELO can be locked to create veVELO NFTs, granting voting power and fee revenue.
— Governance: veVELO holders control which pools receive emissions, effectively governing the protocol's liquidity distribution.
VELO was initially distributed through an airdrop to protocols and users of the Optimism ecosystem. There was no VC presale, no private investor allocation, and no ICO — Velodrome Finance was launched entirely as a public good.
— Liquidity Incentives: VELO is emitted each epoch to LP gauges, rewarding liquidity providers.
— Locking: VELO can be locked to create veVELO NFTs, granting voting power and fee revenue.
— Governance: veVELO holders control which pools receive emissions, effectively governing the protocol's liquidity distribution.
VELO was initially distributed through an airdrop to protocols and users of the Optimism ecosystem. There was no VC presale, no private investor allocation, and no ICO — Velodrome Finance was launched entirely as a public good.
Velodrome Finance uses a weekly epoch system. Each epoch, a fixed amount of VELO tokens is emitted and distributed to gauges based on veVELO votes. The emission rate decreases slightly each epoch following a decay schedule, making early participation more rewarding.
A portion of each epoch's emission is also allocated as a rebase to existing veVELO holders. This rebase is designed to prevent dilution of locked positions from new token issuance, maintaining the relative ownership percentage of long-term participants.
The exact emission parameters and any changes are controlled by Velodrome Finance's onchain governance through veVELO votes.
A portion of each epoch's emission is also allocated as a rebase to existing veVELO holders. This rebase is designed to prevent dilution of locked positions from new token issuance, maintaining the relative ownership percentage of long-term participants.
The exact emission parameters and any changes are controlled by Velodrome Finance's onchain governance through veVELO votes.
VELO tokens can be acquired directly on Velodrome Finance by swapping any supported token for VELO. This is the most direct and decentralized method — simply connect your wallet, select VELO as the output token in the Swap interface, and complete the trade.
VELO is also listed on various centralized exchanges and aggregators. Check velodrome.finance or reputable market data sites for current listings and liquidity information. Always verify you are purchasing the correct contract address for the official VELO token on Optimism.
VELO is also listed on various centralized exchanges and aggregators. Check velodrome.finance or reputable market data sites for current listings and liquidity information. Always verify you are purchasing the correct contract address for the official VELO token on Optimism.
Security
Velodrome Finance employs multiple layers of protection:
Immutable contracts: Core protocol contracts cannot be upgraded or paused by any admin, eliminating the risk of a malicious upgrade.
Multiple audits: Contracts have been audited by leading security firms. Audit reports are publicly available.
Bug bounty: An active bug bounty program incentivizes security researchers to responsibly disclose vulnerabilities.
Time-locks: Any governance actions that modify protocol parameters are subject to time-locked delays, giving the community time to react.
Onchain governance: All significant protocol decisions require veVELO holder approval through onchain votes, preventing unilateral actions.
Immutable contracts: Core protocol contracts cannot be upgraded or paused by any admin, eliminating the risk of a malicious upgrade.
Multiple audits: Contracts have been audited by leading security firms. Audit reports are publicly available.
Bug bounty: An active bug bounty program incentivizes security researchers to responsibly disclose vulnerabilities.
Time-locks: Any governance actions that modify protocol parameters are subject to time-locked delays, giving the community time to react.
Onchain governance: All significant protocol decisions require veVELO holder approval through onchain votes, preventing unilateral actions.
Stay safe when using Velodrome Finance by following these best practices:
Verify the URL: Always access Velodrome Finance via the official domain. Bookmark the site and never click links from unverified sources.
Revoke old approvals: Periodically review and revoke token approvals you no longer need using a tool like revoke.cash.
Use a hardware wallet: For significant amounts, consider signing transactions with a hardware wallet (Ledger, Trezor) for added security.
Check token addresses: When swapping new or unfamiliar tokens, verify the contract address against official sources to avoid scam tokens.
Never share your seed phrase: Velodrome Finance will never ask for your seed phrase or private key.
Verify the URL: Always access Velodrome Finance via the official domain. Bookmark the site and never click links from unverified sources.
Revoke old approvals: Periodically review and revoke token approvals you no longer need using a tool like revoke.cash.
Use a hardware wallet: For significant amounts, consider signing transactions with a hardware wallet (Ledger, Trezor) for added security.
Check token addresses: When swapping new or unfamiliar tokens, verify the contract address against official sources to avoid scam tokens.
Never share your seed phrase: Velodrome Finance will never ask for your seed phrase or private key.
Technical
An epoch is a weekly cycle that governs the timing of all major Velodrome Finance protocol actions. Each epoch begins and ends at Thursday 00:00 UTC.
Key events that occur each epoch:
— VELO emissions are calculated and distributed to gauges based on vote tallies.
— Trading fees collected in the previous epoch are made claimable by voters.
— Incentive deposits become claimable by veVELO voters who voted for the corresponding gauge.
— The rebase for veVELO holders is credited.
You must cast or re-confirm your votes each epoch for them to count. Votes do not automatically roll over to the next epoch.
Key events that occur each epoch:
— VELO emissions are calculated and distributed to gauges based on vote tallies.
— Trading fees collected in the previous epoch are made claimable by voters.
— Incentive deposits become claimable by veVELO voters who voted for the corresponding gauge.
— The rebase for veVELO holders is credited.
You must cast or re-confirm your votes each epoch for them to count. Votes do not automatically roll over to the next epoch.
Velodrome Finance describes itself as the world's first MetaDEX — a protocol that goes beyond simply matching buyers and sellers. Its key differentiators:
Flywheel economics: Fees go to voters (not LPs), creating a sustainable cycle where locked token holders maximize protocol revenue, attracting more LPs and traders.
All pool types in one: Stable, volatile, and concentrated liquidity under one roof with unified routing.
Superchain interoperability: Velodrome Finance is designed to operate across multiple OP Stack chains, enabling cross-chain liquidity.
No VC investors: Launched as a public good with zero outside funding and zero token sales.
Permissionless: Anyone can create a pool, deposit incentives, or build on top of Velodrome Finance without requiring approval.
Flywheel economics: Fees go to voters (not LPs), creating a sustainable cycle where locked token holders maximize protocol revenue, attracting more LPs and traders.
All pool types in one: Stable, volatile, and concentrated liquidity under one roof with unified routing.
Superchain interoperability: Velodrome Finance is designed to operate across multiple OP Stack chains, enabling cross-chain liquidity.
No VC investors: Launched as a public good with zero outside funding and zero token sales.
Permissionless: Anyone can create a pool, deposit incentives, or build on top of Velodrome Finance without requiring approval.
Yes. Velodrome Finance provides comprehensive developer resources including:
Smart contract addresses: All deployed contract addresses are documented in the official docs.
Subgraph: A publicly accessible The Graph subgraph provides indexed on-chain data for pools, swaps, volumes, and positions.
GitHub: The Velodrome Finance GitHub organization contains open-source repositories for the core protocol contracts and SDKs.
Documentation: Technical documentation covers integration guides, contract ABIs, and protocol architecture.
Visit the official documentation and GitHub to access all developer resources. The community Discord also has a dedicated developer channel for technical support.
Smart contract addresses: All deployed contract addresses are documented in the official docs.
Subgraph: A publicly accessible The Graph subgraph provides indexed on-chain data for pools, swaps, volumes, and positions.
GitHub: The Velodrome Finance GitHub organization contains open-source repositories for the core protocol contracts and SDKs.
Documentation: Technical documentation covers integration guides, contract ABIs, and protocol architecture.
Visit the official documentation and GitHub to access all developer resources. The community Discord also has a dedicated developer channel for technical support.
Ready to start trading on Velodrome Finance?
Swap tokens, provide liquidity, lock VELO, and vote — all on Optimism's leading DEX.