
Velodrome Finance is a next-generation AMM and liquidity engine built for the Optimism ecosystem. Inspired by Solidly but redesigned to fix its core issues, Velodrome enables protocols to attract and control liquidity in a sustainable, capital-efficient way.
Protocols incentivize liquidity by directing emissions to pools through veVELO—vote-escrowed NFTs that give holders governance power and boosted rewards. This model aligns incentives among traders, liquidity providers, and protocols, ensuring liquidity flows where it creates the most value. Velodrome’s upgraded design delivers better stability, deeper liquidity, and more consistent incentives compared to the original Solidly implementation.