At its core, Velodrome Finance is the Optimism protocol's solution to properly incentivize liquidity for its own use case. Building on the foundation laid by Solidly, our team has tackled the core issues of the first iteration to realize its full potential.

Velodrome Finance uses two tokens to manage its utility and governance:

VELO --- The protocol's ERC-20 utility token used to reward liquidity providers through emissions.

$veVELO - ERC-721 governance token in the form of NFT (Non-Fungible Token) for governance purposes. Any $VELO holder can vote to escrow their tokens and receive $veVELO (also known as veNFT) in exchange. Additional tokens can be added to the $veVELO NFT at any time.