What is VELODROME: The Circular Track Revolutionizing Cycling Sports

Velodrome's Positioning and Significance

In 2022, the team behind Velodrome Finance launched Velodrome (VELODROME), aiming to address the challenge of incentivizing liquidity for specific use cases within the Optimism ecosystem.

As a decentralized exchange (DEX) and automated market maker (AMM) protocol built on Optimism, Velodrome plays a crucial role in the DeFi sector, particularly in providing efficient trading and liquidity solutions.

As of 2025, Velodrome has become an integral part of the Optimism ecosystem, boasting 57,901 token holders and an active development community. This report will delve into its technical architecture, market performance, and future potential.

Origin and Development History

Birth Background

Velodrome was created in 2022, building upon the foundation laid by the Solidly protocol. It aimed to solve the inefficiencies in liquidity incentivization within the Optimism Layer 2 ecosystem.

Born during the expansion of Layer 2 solutions and the growing need for efficient DeFi protocols, Velodrome's goal was to provide enhanced liquidity and trading mechanisms while addressing the shortcomings of its predecessors.

Velodrome's launch brought new possibilities for DeFi users and liquidity providers on the Optimism network.

Key Milestones

• 2022: Mainnet launch, implementing improved tokenomics and governance mechanisms.
• 2023-2025: Continuous upgrades and optimizations to enhance user experience and protocol efficiency.
• 2025: Ecosystem growth, with the number of integrated DeFi protocols and liquidity pools expanding significantly.

With support from the Optimism community and its own development team, Velodrome continues to optimize its technology, security, and real-world applications within the DeFi space.

How Does Velodrome Work?

Decentralized Control

Velodrome operates on the decentralized Optimism network, free from central bank or government control. The protocol is governed by its community of token holders, ensuring transparency and resilience.

Blockchain Core

Velodrome utilizes Optimism's Layer 2 blockchain, which is a public, immutable digital ledger recording all transactions. This leverages Ethereum's security while offering faster and cheaper transactions through Optimistic rollups.

Ensuring Fairness

Velodrome employs a unique vote-escrowed token model (veVELO) for governance and incentive distribution. Participants can lock their VELO tokens to receive veVELO, granting them voting rights and a share of protocol fees.

Secure Transactions

Velodrome uses public-private key encryption to secure transactions:

• Private keys are used to sign transactions
• Public keys are used to verify ownership

This mechanism ensures fund security while maintaining pseudonymity for users. Additionally, Velodrome benefits from the security features of the Optimism network and Ethereum mainnet.

VELODROME Market Performance

Circulating Supply Overview

As of November 18, 2025, VELODROME's circulating supply is 1,068,269,466.8767 tokens, with a total supply of 2,275,047,034.290298 tokens.

Price Fluctuations

VELODROME reached its all-time high of $0.6 on December 13, 2024. Its lowest price was $0.02214, occurring on October 10, 2025. These fluctuations reflect market sentiment, adoption trends, and external factors.

Click to view the current VELODROME market price

On-chain Metrics

• Daily Trading Volume: $156,398.3189191 (indicating network activity)
• Active Addresses: 57,901 (reflecting user engagement)

Velodrome Ecosystem Applications and Partnerships

Core Use Cases

Velodrome's ecosystem supports various applications:

• DeFi: Velodrome Finance, providing liquidity incentivization and decentralized exchange.
• Governance: veVELO NFTs, enabling community-driven decision-making.

Strategic Collaborations

Velodrome has established partnerships with Optimism, enhancing its technical capabilities and market influence. These partnerships provide a solid foundation for Velodrome's ecosystem expansion.

Controversies and Challenges

Velodrome faces the following challenges:

• Technical Issues: Scalability and transaction speed on the Optimism network
• Regulatory Risks: Potential scrutiny of DeFi protocols
• Competitive Pressure: Rising competition from other DeFi protocols and Layer 2 solutions

These issues have sparked discussions within the community and market, driving Velodrome's continuous innovation.

Velodrome Community and Social Media Atmosphere

Fan Enthusiasm

Velodrome's community is vibrant, with 57,901 holders as of November 18, 2025. On X platform, related posts and hashtags (such as #Velodrome) often trend, reflecting active community engagement. Price fluctuations and new feature releases ignite community enthusiasm.

Social Media Sentiment

Sentiment on X presents a mixed picture:

• Supporters praise Velodrome's liquidity incentivization mechanism and governance model, viewing it as a "cornerstone of DeFi on Optimism".
• Critics focus on price volatility and competition from other DeFi protocols.

Recent trends show cautious optimism amidst market fluctuations.

Hot Topics

X users actively discuss Velodrome's tokenomics, governance proposals, and integration with the broader Optimism ecosystem, showcasing both its transformative potential and the challenges in achieving mainstream adoption.

More Information Sources for Velodrome

• Official Website: Visit Velodrome's official website for features, use cases, and latest updates.
• Whitepaper: Velodrome's documentation details its technical architecture, objectives, and vision.
• X Updates: On X platform, Velodrome uses @VelodromeFi, actively posting about technical upgrades, community events, and partnership news.

Velodrome Future Roadmap

• Ecosystem Goals: Expand liquidity pools and enhance governance mechanisms
• Long-term Vision: Become a leading DeFi protocol on the Optimism network

How to Participate in Velodrome?

1. Purchase Channels: Buy VELO on Gate.com
2. Storage Solutions: Use Web3 wallets compatible with Optimism network for secure storage
3. Participate in Governance: Through veVELO NFTs, engage in community decision-making
4. Build the Ecosystem: Visit Velodrome's documentation to contribute or develop on the platform

Summary

Velodrome redefines DeFi through blockchain technology, offering liquidity incentivization and decentralized governance. Its active community, rich resources, and strong market presence make it stand out in the cryptocurrency field. Despite facing regulatory uncertainties and technical challenges, Velodrome's innovative spirit and clear roadmap secure its important position in the future of decentralized finance. Whether you're a newcomer or a seasoned player, Velodrome is worth watching and participating in.

FAQ

Why is it called a velodrome?

The name 'Velodrome' combines 'velo' (bicycle) and 'drome' (race course), reflecting its cycling-inspired design and fast-paced nature in the crypto world.

How many velodromes are there in the world?

As of 2025, there are approximately 300 velodromes worldwide. The number fluctuates due to construction and demolition.

What is the velodrome used for?

Velodrome is a decentralized exchange and liquidity management protocol on Optimism, used for trading, providing liquidity, and earning rewards in the DeFi ecosystem.

How does the velodrome cycling work?

Velodrome cycling involves riding on a steeply banked, oval track. Cyclists lean into turns due to the track's banking. Races include sprints and endurance events.