Velodrome

**VELO Token Locking Metrics Show Strong Community Commitment** Approximately **54% of VELO's total supply** remains locked by holders, demonstrating sustained confidence in the protocol. **Key Statistics:** - Average lock duration: **3.61 years** - **89% of locks** are set to auto-max - Over **14,000 veVELO holders** participating - **$73M+ in voter rewards** distributed to date The locking mechanism allows VELO holders to earn voting power and rewards while committing their tokens for extended periods.

**Velodrome demonstrates remarkable capital efficiency** on Unichain, with its top pool generating nearly identical trading volume to competitors while using only **1% of their total value locked (TVL)**. - **85x efficiency advantage** over competing protocols - Significantly higher volume-to-liquidity ratio - Continues pattern of superior performance on layer 2 networks This efficiency metric highlights how Velodrome's liquidity infrastructure **maximizes returns for liquidity providers** through optimized capital utilization. The protocol's ability to generate substantial trading activity with minimal locked capital suggests strong market demand and effective incentive mechanisms.

Velodrome reminds users to access their platform through **decentralized domains** during ongoing migration: - [velo.drome.eth.limo](http://velo.drome.eth.limo) - [velo.drome.eth.link](http://velo.drome.eth.link) - [aero.drome.eth.limo](http://aero.drome.eth.limo) - [aero.drome.eth.link](http://aero.drome.eth.link) The platform continues emphasizing **decentralized frontend access** for security during this transition period. *Use only official decentralized domains to avoid potential security risks.*

A centralized domain provider suffered a social engineering attack, affecting platform operations. The team has regained control of their domain and is working to restore full functionality. **Key developments:** - Social engineering attack targeted domain infrastructure - Control has been restored following the incident - Primary domain restoration still in progress **Moving forward:** The attack highlights vulnerabilities in centralized domain systems. A comprehensive plan is being developed to reduce dependence on traditional domain providers and improve security infrastructure. Full technical details and response measures will be shared once the restoration process is complete.

**Velodrome Finance is actively investigating a frontend compromise** and has issued an urgent warning to users. **Key Safety Measures:** - Do not access the site through any URL - Avoid primary domain and decentralized mirrors - Wait for official confirmation that everything is safe **Important:** All smart contracts remain secure and uncompromised. The issue appears limited to the website frontend only. This follows a pattern of similar frontend attacks in DeFi, including a previous Compound Finance incident where visiting compromised sites put users at risk. **Stay safe** - wait for the all-clear before resuming normal site usage.

**Velodrome is currently investigating a potential DNS hijacking attack** and has issued an urgent warning to users. **Key Safety Measures:** - Do not use any Velodrome domains - Avoid interacting with the platform entirely - Investigation is ongoing This marks the **second security incident** for the Optimism-based DEX, following a frontend compromise in November 2023. The team has not provided a timeline for resolution but continues to investigate the breach. Users should wait for official updates before resuming platform usage.

Aerodrome delivered **$74M in net value** to token operators over the past year. The platform projects significant growth through new mechanisms: - **REV engine**: Expected to boost value to $177M - **AER engine**: Additional increase to $200M - **Momentum Fund buybacks**: Full potential of ~$300M This represents a **4x increase** from current levels through the implementation of these three value-generation systems for token operators on the platform.

Aero introduces two new economic engines designed to strengthen its token ecosystem. The **REV engine** captures new revenue streams including: - DEX aggregator fees - Front-end fees - Bridging fees - Auto-compounding services Revenue flows into programmatic Aero buybacks, with tokens redistributed to operators and weekly reward boosts. The **AER (Adaptive Emissions Rate) engine** makes rewards responsive to market conditions through: - Dynamic emissions caps for each pool - Increased rewards during high trading activity Estimates suggest the engines could increase value inflow by 40% while reducing outflow by 25%. Read more: [Aero economy details](https://blog.dromos.xyz/introducing-metadex03)

**Velodrome has rebranded its ALM system to Autopilot**, a new liquidity management tool that promises zero-fee, automated earning. **Key Features:** - 100% free for all users - Zero fees and zero maintenance required - Simple deposit-and-earn functionality - Hands-free liquidity optimization The platform positions Autopilot as an improved version of their previous automated liquidity management system. Users can now deposit funds and let the system handle liquidity positioning automatically. **Available now** on the Velodrome platform for Optimism users looking for passive liquidity management. [Learn more about Autopilot](https://velodrome.finance/autopilot)

**Velodrome is launching on Tea**, the new L2 from Tea Protocol designed as Ethereum's open source layer. **Tea's Mission:** - Enhance open-source software sustainability - Restructure software incentives - Create secure OSS supply chains - Deliver modern onchain app UX **Coming Features:** - Vote on OP Mainnet for Tea pools - Bridge xVELO to Tea LPs - Deposit voter incentives across networks - Claim rewards on Tea - Access Slipstream CL **Launch Details:** - 2M veVELO locked - 1M allocated for incentives - Emissions directed to key pools - Boosted liquidity on Velodrome This expansion continues Velodrome's **Superchain growth strategy**, following their 1M OP grant to deepen TVL across the Optimism ecosystem.