Velodrome V1 review

Velodrome V1 launched on the Optimism network in June 2022 and was created by the veDAO team, known for their work with the Solidly protocol on Fantom. Designed to provide a more sustainable model for decentralized exchanges, Velodrome focuses on aligning long-term growth with incentives for both liquidity providers and token lockers. Unlike many DeFi projects, Velodrome didn't rely on traditional venture capital funding, choosing instead to build a strong community foundation. To encourage decentralized governance, 60% of VELO tokens were distributed to DeFi and Optimism community members. The platform’s ecosystem utilizes VELO and veVELO tokens, where VELO serves governance and staking purposes, and veVELO, an NFT-based governance token, offers rewards to users who lock their VELO tokens for extended periods. This setup includes a system of transaction fees, bribes, and VELO emissions, ensuring rewards are closely aligned with liquidity needs.