Introduction

In this Analysis, You will Read About Velodrome finance on Optimism chain. Velodrome is the most popular platform on this chain.

Why did I choose Velodrome to analyze? Since the beginning of the new year, the price of Velodrome native token, $Velo, has increased by 1000%. The growth of Velo was 10x in two months. The Velodrome token is gaining much attention, and rumors are that it is the next 100x altcoin. Also, Velodrome recently announced their TVL increased to over 200M US dollars. As a result, I analyzed Velodrome's platform and native token.

What is Velodrome?

Velodrome Finance is a decentralized trading and liquidity aggregation platform built on the Optimism Layer 2 scaling solution for Ethereum. It aims to provide fast and cost-effective trading experiences for users while also enabling liquidity providers to earn fees by contributing liquidity to the platform.

Optimism is a Layer 2 scaling solution for Ethereum that uses optimistic rollups to increase the network's throughput and decrease transaction fees. Velodrome Finance leverages this technology to provide users with faster and cheaper trading experiences than trading directly on the Ethereum network.

On Velodrome Finance, users can trade various tokens, including popular cryptocurrencies such as ETH and BTC, as well as lesser-known tokens. The platform uses an automated market maker (AMM) model, where liquidity providers contribute funds to liquidity pools, which are then used to facilitate trades. Users can trade against these pools and receive prices based on the current supply and demand of the token.

Velodrome Finance also has its own governance token, Velo, which enables holders to participate in platform governance and earn a share of the platform's fees. Velo token holders can vote on proposals such as fee adjustments, changes to the protocol, and new integrations.

Overall, Velodrome Finance on Optimism aims to provide users a fast, cheap, and user-friendly trading experience while enabling liquidity providers to earn fees by contributing to the platform's liquidity pools.

Method

I should mention that I analyzed Velodrome Health in November 2022. Since then, Velodrome's native token and project have experienced significant gains. Currently, Velodrome is trending again and everyone is talking about it. Therefore, I prefer to analyze Velodrome from different perspectives.. You can read the previous analysis in the below link:

https://app.flipsidecrypto.com/dashboard/velodrome-health-redux-rV3T7P

Flipside has a specific table for each Velodrome feature. I used those tables to analyze Velodrome.

Dashboard Guide:

$Velo Pirce: Comparision of Velo with other popular tokens like BNB, Matic, Osmosis, OP and ETH

LPs: I examined add and withdraw Liquidities on Velodrome.

Staking: Users Can Stake their LP tokens on Velodrome. in This section, I analyzed Staking activities

Rewards: Users can earn rewards in multiple ways on Velodrome. You can read about reward distribution in this tab.

Swaps: I analyzed Swap activities on Velodrome. Also, I examined total swaps from and to Velo token.

Locks: Users can lock their Velo token on Velodrome. In this tab, You will read about Lock activities.