Latest Velodrome Finance (VELO) News Update

Deep Dive

1. @VelodromeFi: Slipstream LP Rewards Surge (Bullish)

"USDC-WETH pools now offer 518% APY – our highest since August 11."
– @VelodromeFi (1.2M followers · 12.4K impressions · 2025-08-11 16:51 UTC)
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What this means: This is bullish for VELO because high yields attract liquidity, increasing protocol fees and veVELO staking rewards. However, 365-day average lock durations suggest participants expect long-term value accrual.

2. @indodax: $49M Token Unlock Looms (Bearish)

"17% of VELO’s supply (49.08M tokens) unlocks September 21 – equivalent to 120% of its 30-day trading volume."
– @indodax (950K followers · 15 September 2025 report)
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What this means: This is bearish for VELO because the unlock could flood markets with 4x the average daily liquidity. Historical data shows previous unlocks correlated with 8-12% price dips within 72 hours.

3. @cryptonewsland: Technical Gridlock at $0.015 (Neutral)

"VELO faces triple resistance: downward-sloping EMA200, upper Bollinger Band, and $0.015 psychological level. 90-day volatility dropped to 42% – lowest since March."
– Satori via Cryptonewsland (29 June 2025 analysis)
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What this means: This neutral technical setup suggests imminent volatility. A close above $0.0155 could trigger 25% upside to July highs, while failure might retest $0.011 support.

4. @the_block: SuperSwaps Go Multichain (Bullish)

"Cross-chain volume via Velodrome’s Hyperlane integration now comprises 18% of total TVL ($92M), up from 6% pre-launch."
– The Block (2 July 2025 report)
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What this means: This is bullish long-term as Velodrome becomes Optimism’s de facto DEX. However, the 30% drop in veVELO lockups since August suggests governance participation may be shifting.

Conclusion

The consensus on VELO is mixed – bullish fundamentals around cross-chain growth and yield opportunities clash with bearish tokenomics (imminent unlocks) and whale selling (65% reduction in large wallets since July). Watch the $0.015 resistance level post-unlock on September 21, as a hold above this could signal market absorption of new supply. How will Velodrome’s ve(3,3) model adapt to Etherex’s liquid locking competition?

Deep Dive

1. Token Unlock Jumbo (15 September 2025)

Overview:
Velodrome faces a $49.08 million VELO unlock on 18 September 2025, representing 17% of its circulating supply. This is part of a broader wave of unlocks across nine tokens totaling $424M, including Optimism and LayerZero. Historically, large unlocks have correlated with short-term price volatility due to increased sell pressure.

What this means:
This is bearish for VELO in the near term, as unlocks often trigger sell-offs if demand doesn’t absorb the new supply. However, Velodrome’s locked tokenomics (55% of supply staked for ~3.6 years) may mitigate downside risks. Traders should monitor exchange inflows post-unlock.
(Indodax)

2. Revolut Listing (16 August 2025)

Overview:
VELO became tradable on Revolut’s app, Europe’s largest fintech platform with 60M users. The integration simplifies access for retail investors and precedes a planned rollout on Revolut X, the platform’s advanced trading arm.

What this means:
This is bullish for adoption, as Revolut’s user base dwarfs most crypto-native exchanges. Increased visibility could attract fresh capital, though VELO’s price has dipped 13% monthly, suggesting the news may already be priced in.
(VelodromeFi)

3. Volume Milestone (20 September 2025)

Overview:
Velodrome surpassed $12B in 2025 trading volume, doubling its 2024 total. The protocol now dominates liquidity across eight chains in the Optimism Superchain, with cross-chain swaps driving 400% monthly volume growth on Unichain.

What this means:
This is neutral-to-bullish long-term. While volume growth signals utility, VELO’s price remains 58% below its 2024 peak. The ve(3,3) model’s success hinges on sustaining liquidity incentives as competing DEXs adopt similar strategies.
(VelodromeFi)

Conclusion

Velodrome balances ecosystem expansion against tokenomics headwinds, with Revolut adoption and volume records offsetting unlock risks. Will protocol fees from $12B volume justify VELO’s valuation despite dilution?

Deep Dive

1. SuperSwaps Integration (2 July 2025)

Overview: Velodrome introduced SuperSwaps, enabling native cross-chain token swaps across Optimism Superchain networks like OP Mainnet, Celo, and Mode without bridging.

This update uses Hyperlane’s interoperability protocol to unify fragmented liquidity pools. By integrating Velodrome’s DEX deployments on multiple Layer 2 chains, users can swap assets directly within the interface.

What this means: This is bullish for VELO because it streamlines cross-chain transactions, potentially increasing protocol usage and liquidity inflows. Enhanced interoperability could attract more projects to build on Velodrome’s infrastructure.
(Source)

2. 1-Click Swaps Launch (20 September 2025)

Overview: Velodrome launched a simplified swap interface allowing users to execute trades in a single click, reducing friction for retail participants.

The feature integrates real-time slippage tolerance calculations and optimizes gas fees for Optimism’s Layer 2 environment.

What this means: This is neutral for VELO as it primarily improves UX rather than altering tokenomics. However, lower barriers to entry could drive higher trading volumes and fee revenue over time.
(Source)

3. Automated Liquidity Management (16 August 2025)

Overview: Velodrome introduced ALM (Automated Liquidity Management), letting LPs set rules for dynamic fee adjustments and emissions redirection.

ALM uses smart contracts to auto-compound rewards and rebalance liquidity based on pre-set parameters, reducing manual intervention.

What this means: This is bullish for VELO because it incentivizes long-term liquidity provision, which could stabilize TVL and reduce sell pressure from short-term LP rewards.
(Source)

Conclusion

Velodrome’s codebase updates emphasize cross-chain efficiency (SuperSwaps), accessibility (1-Click Swaps), and liquidity retention (ALM), reinforcing its role as Optimism’s liquidity hub. How will these upgrades impact VELO’s competitiveness against rivals like Uniswap V4?

Deep Dive

1. Superchain Expansion (2025–2026)

Overview: Velodrome aims to deepen integration with Optimism’s Superchain networks like Metal L2, Mode, and Unichain, building on its $12B+ cross-chain volume in 2025 (The Block). New chains plan to accumulate veVELO voting positions and allocate grants to incentivize liquidity, enhancing Velodrome’s role as a liquidity backbone.

What this means: This is bullish for VELO because expanding to new chains increases utility and demand for governance participation. However, execution risks remain if adoption lags on newer Superchain networks.

2. ALM Enhancements (Q4 2025)

Overview: Active Liquidity Management (ALM) tools, introduced in August 2025, allow LPs to automate yield strategies across concentrated liquidity pools. Planned upgrades include dynamic fee adjustments and multi-chain ALM support (VelodromeFi).

What this means: This is neutral-to-bullish, as improved ALM could attract institutional liquidity, but complex tooling may deter casual users. Current ALM pools like USDC-WETH already offer ~500% APY, signaling strong demand.

3. Governance Upgrades (2025)

Overview: Velodrome will simplify veVELO lock mechanics and introduce delegated voting to reduce governance friction. Over 54% of VELO supply is locked (avg. 3.6 years), but participation remains concentrated among top holders (VelodromeFi).

What this means: This is bullish if it decentralizes decision-making, but tokenomics still favor long-term lockers, risking centralization. Fee-sharing rebates for voters could offset dilution from emissions.

Conclusion

Velodrome’s roadmap prioritizes cross-chain dominance and liquidity efficiency, leveraging its ve(3,3) model to sustain its $9B+ volume growth. Key risks include Superchain adoption velocity and ALM tool usability. How might evolving L2 competition reshape Velodrome’s moat in 2026?