Velodrome: Optimism's Liquidity Backbone

ve(3,3) model AMM · +130 XP · 10 min read · Updated March 2026

TVL

$320M

Daily Volume

$85M

Token

$VELO

Chain

Optimism

Pools

600+

Rating

⭐ 4.5

What is Velodrome?

Velodrome is the central liquidity layer for the Optimism ecosystem, built on the ve(3,3) tokenomic model pioneered by Andre Cronje. It combines an AMM (for swaps) with a governance system where veVELO holders vote weekly to direct VELO emissions to pools — incentivizing deep liquidity for any protocol willing to bribe voters.

ve(3,3) Explained

Lock VELO → veVELO

Lock VELO tokens for up to 4 years to receive veVELO (vote-escrow VELO). Longer lock = more voting power.

Vote on Pool Emissions

Weekly, veVELO holders vote on which liquidity pools receive VELO emissions. Pools with more votes attract more liquidity.

Earn Bribes + Fees

Protocols wanting liquidity in their pools 'bribe' veVELO voters with tokens. Voters also earn 100% of swap fees from voted pools.

Game Theory: (3,3)

The model rewards locking and voting (cooperative behavior) while penalizing selling, creating a self-reinforcing flywheel.

Live Price Chart — $VELO

Explore Velodrome on Optimism

Open Velodrome →