Plain English
Velodrome is the dominant DEX on Optimism, launched in 2022. Uses a “ve(3,3)” tokenomic model — VELO holders lock for veVELO, vote on which pools receive emissions, and earn 100% of trading fees from the pools they voted on. Created by team members from Andre Cronje’s Solidly experiment.
How it actually works
veVELO holders direct weekly emissions and earn bribes plus pool fees. Volatile pools (cAMM) and stable pools (sAMM) for different asset pairs. Velodrome holds protocol-owned liquidity that anchors much of the volume. The Aerodrome fork applies the same model to Base.
What it means for you
Velodrome is the productive home of Optimism DeFi yield. For HNW capital deployed on Optimism, veVELO locks plus bribe income offer some of the highest sustainable yields in DeFi. Pair with Aerodrome (Base) for similar exposure on a different L2.
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Educational content only. Not investment, tax, or legal advice.