Velodrome TVL

$VELO token price and Supply

The data for token supply has manually added for the supply before JUNE 14 2022. Around 321 Million supply before JUNE 15 2022.

$VELO Emissions and Supply tokenomics

The initial supply of $VELO is 400M.

Weekly emissions start at 15M $VELO (3.75% of the initial supply) and decay at 1% per week (epoch).

$veVELO holders receive a rebase proportional to epoch LP emissions and the ratio of $veVELO to $VELO supply, thus reducing vote power dilution for $veVELO!

The weekly rebase amount is calculated with the following formula:

> (veVELO.totalSupply ÷ VELO.totalsupply)³ × 0.5 × Emissions

$veVELO supply does not affect weekly LP emissions.

$VELO token supply & price 🪙

• $VELO token supply has been increasing exponentially over the time.
• Up to November 10 2022, there are in total 976 Million of the $VELO token in the market.
• Due to BEAR market the $VELO token price is not performing well . A downfall since a peak achieved on 29th July 2022 up to 0.0839 USD.
• As of the date of analysis, 1 $VELO token = 0.0254 USD

$VELO Staked and wallet balance

Staking

• As of Nov 10 2022, there are in total 650 Million $VELO staked on Velodrome.
• In late July and early Aug 2022, there are days where there having net amount unstake more than staking.
• 66.6% of the total $VELO supply has been staked==.

Daily $VELO transfer

• Most of the days are having only less than 2 Million $VELO transferred.
• While during the peak, there are 12 Million $VELO transferred within a day.
• On daily average the $VELO transfer volume between 200k up to 1.5 Million.

$VELO holders

> < 1 : Mini > > 1 ~100 : Entry > > 100 ~ 1000 : Intermediate > > 1000 ~ 10000 : High > > 10000 : Elite

• There are in total 33.6k wallets holding $VELO token.
• However, majority of them are from mini category. The category distribution decreases as the balance of $VELO increases.

Fee

Velodrome Finance Overview

Velodrome is the alternative for the core problems surfaced in Solidly that come along with certain improvements. Key innovation of Solidly was to align protocol emissions with fees generated, not simply liquidity. It allows protocols and other large stakeholders to become veNFT "voters", using their locked voting power to direct future emissions and collecting fees (termed bribes in Solidly) from the pools they voted for.

Velodrome with multiple improvements to the Solidly codebase, all of which were thoughtfully chosen to ensure that the protocol would carry out the original intended mechanism of allowing voters to fairly compensate LPs for impermanent loss.

In Solidly, voting rewards (i.e. bribes) were claimable before the emissions from that vote were committed. Velodrome addresses this with new mechanisms:

• First, we allow voters to make only one "active" voting decision (i.e. Voter.vote(), Voter.reset()) every epoch (note: this does not include the Voter.poke() function).

• Additionally, bribes from fees (internal) and external sources (external) are treated differently. Internal bribes function more or less the same way as they did in Solidly, streamed to voters who vote for them. External bribes, however, are rewarded per epoch rather than streamed, and are claimable only after the next epoch starts. This means that a bribe sent at the last minute of an epoch will accrue to all voters of that epoch, and be claimable once the epoch flips.

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The goal of these changes is to ensure a healthy equilibrium between voters and external bribers. Bribers are incentivized to get their bribes early in that week, as to attract early voters. They also benefit from bribing later, as to have more information on competing bribes. Voters face a similar dilemma, as voting too early means forgoing potentially lucrative bribes that come later, and voting too late means losing out on the proportion of bribe earned.

Source : Velodrome Docs

Fee

• Total 538k USD collected.

  Percentage out of all Fee collected on Velodrome

  🥇 vAMM-OP/USDC : 41.7%

  🥈 vAMM-WETH/USDC : 19.9%

  🥉 vAMM-USDC/sUSD : 5.67%

• On most of the days , the daily average fee collected on Velodrome has only at level around ~1k USD.

• The amount of fee collected surge to next level around and above 5k USD daily during late July and early August 2022.

• On certain days there are also above 10k USD and the peak at 18k USD within a day.

• Overall there is an increase in the amount of fee collected on Velodrome.

• While almost half of the fee collected are in USDC. Which is 42.5% of the overall fee collected.

• While OP and WETH following behind with other variety of tokens as well.

All TVL data are obtained since June 15 2022, not from the project starts.

TVL

• 🏆 (AUG 1 2022) : Total value at 132 Million USD
• An exponential growth from JUNE to AUG 1 2022, a quick decline within the next 2 weeks to around 74 Million USD. Moving forward the Velodrome TVL fluctuate within 55 Million to 74 Million USD.
• First, there is a huge change in daily TVL in 2nd JUNE 2022 with more than 30 Million increase. While a volatile TVL change during month of July and August 2022.
• While most of the days having a change within 1 Million USD.
• Since August 2022, on average there are more days having net decrease in TVL.

Velodrome Pairs TVL

🥇 sAMM- USDC/sUSD : 19.7% of overall TVL

🥈 sAMM- USDC/DAI : 9.75% of overall TVL

🥉 sAMM- WETH/USDC : 8.52% of overall TVL

Swap Activities

Swap

• There are in total 307 of swap pairs on Velodrome since June 15 2022.
• Since July there is an exponential growth in number of new pairs.
• Not everyday Velodrome have new swap pairs added, but there is definitely new swap pairs within a week. (period June 15 to Nov 10)
• Swap volume on Velodrome is increasing over the time, there is no signs of slowing down, even in 🐻 market.

Total Swap Volume

🥇 USDC-OP : 23.3%

🥈 OP-USDC : 23%

🥉 USDC-WETH : 8.3%

USDC<>OP and USDC<> WETH are the popular pairs on Velodrome. VELO<>USDC is the third popular pair on Velodrome.

How to profit from swap?

I found that there are certain swap direction may profit for swappers on Velodrome.

They are :

• ==USDC → VELO==
• ==OP → VELO==
• ==alETH → WETH==

TOP 10 pairs have been shown on the chart above.

Appendix

Author : 𝐑α𝔪αʰαʳ#4167 Discord

Date of Analysis : November 14 2022

Data Source : Flipside Crypto

Version : Remastered from Aug 14 2022 submission

Velodrome Health Summary

• TVL remain within the range, no sign of downfall during BEAR market. ⚓
• $VELO token supply increases, while the token price fall. 🚑
• Swap volume remain constant but cumulative increase; Meanwhile the swap pairs increases. More variety. 🚀
• $VELO Staked increases over time, maintaining at 66% which is more than half market share. 🚀
• More decentralized token holders among $VELO holders. 🚀
• Voting is not only focusing on particular, diverse. 🚀
• Fees collected is growing larger. Most of them are in USDC, which induce stability for the income. 🚀

Health Meter

Good : 🚀

Neutral : ⚓

Bad : 🚑

I would give 7.8/10 rating for Velodrome Health as of the date of analysis. Other than token price not performing well, given the TVL remaining stable, a constant swap volume, constant growth of fee collected and all other activities on Velodrome, I would say it is still healthy and investing-worthy.

Each aspects contribute to 1 point in my evaluation without the importance weightage. For example, voting 1 point, token price and supply 1 point, swap activity 1 point and etc.

Good luck and happy investing!

Voting

Voting

When $VELO holders locked their $VELO token on Velodrome. They will receive $veVELO and with the token receive the veNFT “voters” may use their locked voting power to ==direct future emissions and collecting fees== (termed bribes in Solidly) from the pools they voted for. $veVELO holders decide which liquidity pools receive emissions in a given epoch by voting on their preferred liquidity pool gauges. $VELO emissions will be distributed proportionally to the total votes a liquidity pool receives.

In return, voters receive 100% of the trading fees and bribes collected through the liquidity pool they vote for. Trading fees accrue in the epoch as soon as the vote is cast. Bribes accrue to voters in the same epoch in which they're deposited.

Fees

Represent liquidity pool trading fees distributed to voters in pool tokens ( e.g., if the pool is vAMM-VELO/USDC the distributed tokens are $VELO and $USDC).

The tokens are streaming proportionally to the voting power cast by a voter and the accrued amount of trading fees.

These rewards are available for claim as these accrue.

• From two charts above, VolatileV1 AMM OP/USDC has received the most votes from voters. With over 27.8% and total votes of 3997.
• While only another pool keep up with the OP/USDC pool which is VolatileV1 AMM VELO/USDC which taken up 27.2% and total votes of 3926.
• While there are only 3 pools receiving more than 1000 votes ; they are StableV1 AMM -USDC/sUSD , VolatitleV1 AMM -VELO/OP and VolatileV1 AMM -WETH/USDC.

With the illustration of both voting and fee collected by each pools, reader for veNFT may able to determine which pools to vote and maximize their returns.

Methodology

This dashboard will showcase several aspects on Velodrome, such as token supply, staking trend, swap activity, voting , fee collection and etc.

In order to obtain and present the data. I’ve selected few of the tables as the source of data.

Tables used :

optimism.core.fact_transactions , optimism.core.fact_hourly_token_prices , optimism.core.fact_event_logs , optimism.velodrome.ez_swaps ,optimism.velodrome.ez_lp_actions .

There are so many ways involved to filter out the data and I’ll list few examples here :

--Filter to obtain $VELO token transfer
topics[0] = '0xddf252ad1be2c89b69c2b068fc378daa952ba7f163c4a11628f55a4df523b3ef' -- Transfer 
and contract_address = '0x3c8b650257cfb5f272f799f5e2b4e65093a11a05' -- VELO

--Filter for voting event 
topics[0] = '0xddf252ad1be2c89b69c2b068fc378daa952ba7f163c4a11628f55a4df523b3ef' -- Transfer
and concat('0x', right(topics[2], 40)) = '0x9c7305eb78a432ced5c4d14cac27e8ed569a2e26'  -- VotingEscrow
and contract_address ='0x3c8b650257cfb5f272f799f5e2b4e65093a11a05'  -- Velo