About Velodrome Airdrop
Velodrome Airdrop is the trading and liquidity marketplace on Optimism. As an AMM (automated market maker) adapted from Solidly, Velodrome Finance comes with standard features popularized by Uniswap v2, and some novel ones, critical to Optimism’s ecosystem development.
Velodrome is airdropping a total of 240,000,000 VELO to OP, WeVE and other Cross-chain DeFi users. Users who’re eligible for the OP airdrop as Repeat Optimism Users, WeVE holders and other Cross-chain DeFi users such as veCRV and vlCVX holders are eligible for the airdrop.
Velodrome Airdrop Finance, at its core, is a solution for protocols on Optimism to properly incentivize liquidity for their own use cases. Building on top of the groundwork laid out by Solidly, our team has addressed that first iteration’s core issues to realize its full potential.
| Platform | Tokens per Claim | Max. Participants | Website |
|---|---|---|---|
| Optimism | 240,000,000 VELO | Unlimited | Click Here To Visit |
Who is behind this project?#
The team behind Velodrome Finance previously launched veDAO, an initiative incubated by Information Token. veDAO’s founding mandate was to engage with the Solidly ecosystem, a protocol launched on the Fantom network by Andre Cronje, while driving long-term value to the veDAO community.
The veDAO team has since developed deep subject matter expertise on both Solidly, the veNFT primitive, and the ve(3,3) mechanism, becoming the go-to resource for protocols and chains seeking support around these topics.
By the numbers, veDAO, managed to attract $2.6B in TVL (total value locked) in the early days, securing ~10% of Solidly voting power and ~$1.1M USDC in treasury assets.
Getting Ready
Velodrome Airdrop operates exclusively on the Optimism network (a layer 2 of the Ethereum main network that uses Optimistic Rollups).
If you are unfamiliar with Optimism, you can find a lot of resources about the network, its ecosystem, and its mission on the Optimism.
To set up your wallet, please go to https://chainlist.org and search for Optimism. You can use the Connect Wallet button to automatically configure your default wallet to use Optimism. Use the arrow down to expand for more configuration options.
A message to the veDAO community#
The members of the veDAO core team learned a tremendous amount about ve(3,3) mechanics after receiving the 4th largest $veNFT in what’s come to be called the Solidly Wars.
This experience resulted in a veDAO governance proposal, which passed, directing the team to seek opportunities outside of accruing Solidly vote share on the Fantom network.
The veDAO core team incubated Velodrome in accordance with DAO governance principles for the benefit of the DAO. veDAO’s final governance act was to make good on this promise, distributing accumulated treasury in $USDC and $VELO tokens to $WEVE holders.
The veDAO community stuck with us through a seemingly impossible number of surprises, challenges, and disappointments. They’re friends, allies, and, in some cases, central team members. Everything we do with Velodrome from here is rooted in our shared experience.
We believe that the veDAO members will be valuable, enthusiastic additions to the Optimism community in the coming weeks and will be instrumental in the long-term success of Velodrome.
Tokenomics
Velodrome Finance uses two tokens to manage its utility and governance:
$VELO— ERC-20 utility token of the protocol$veVELO— ERC-721 governance token in the form of an NFT (non-fungible token)
$VELO is used for rewarding liquidity providers through emissions.
$veVELO is used for governance. Any $VELO holder can vote-escrow their tokens and receive a $veVELO (also known as veNFT) in exchange. Additional tokens can be added to the $veVELO NFT at any time.
The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:
- 100
$VELOlocked for 4 years will become 100$veVELO - 100
$VELOlocked for 1 year will become 25$veVELO
Mechanics#
Velodrome Airdrop Finance mechanics reflect a combination of two DeFi concepts:
- Vote-Escrow — first introduced by Curve to strengthen incentives for long-term token holders
- Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO
Combined, the ve(3,3) mechanism rewards behaviors correlated with Velodrome’s success, such as liquidity provision and long-term token holding. Liquidity providers receive $VELO emissions, and $veVELO holders receive protocol fees, bribes, rebases, and governance power.
