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The US Congressman claims to have purchased the Velodrome token: what is it?
In a move that has sparked curiosity far beyond political circles, US Congressman Mike Collins (R-Georgia) revealed a recent purchase of a cryptocurrency worth $15,000 called Velodrome.
THE investment put the spotlight on Velodrome, a relatively unknown cryptocurrency with a market capitalization of around $150 million. The project’s VELO token is currently trade according to CoinGecko, it rose about 15% in 24 hours to 0.1169.
Unlike established operators like Bitcoin or Ethereum, Velodrome targets a specific niche in the cryptocurrency world: decentralized finance (DeFi) on layer-2 networks.
What is the Velodrome?
Velodrome Finance launched in June 2022, evolution of the Solidly project. Its goal was to support liquidity for DeFi protocols on Layer 2 solutions. The platform uses a “voting commitment” mechanism, fusing concepts from Curve Finance and Olympus DAO, designed to encourage long-term holding through staking, rebasing and bonding.
The goal was to avoid some of the common problems in DeFi by using rewards to balance the protocol’s emissions with fees and avoiding the “farm and dump” scenario.
Velodrome offers a variety of liquidity pools, with reward rates determined by user voting. This setup aims to direct users to the most profitable pools, improving liquidity and reducing slippage for traders.
The platform includes both “stable pools” for low-volatility coins, and “variable pools” for high-volatility assets, providing a diversified trading environment. Additionally, Velodrome offers bribes to attract support for specific pools.
Velodrome Finance reports that it has undergone security checks and is committed to engaging the DeFi community through initiatives such as veDAO.
The VELO token
The VELO token is fundamental to the Velodrome ecosystem. The initial distribution included 400 million tokens, allocated among community members, partner protocols, the Velodrome team, and the Optimism team.
VELO holders receive transaction fees, kickbacks, and rebase rewards.
VELO converts to veVELO when blocked, allowing users to vote on pools and influence protocol decisions.
The Velodrome timetable
Future plans set out by Velodrome Finance include features such as automatic interest accrual, a liquidity feature based on Uniswap V3, metapool integration, and “veNFT” trading, lending, and taking.
By Ryan Ozawa.