We are excited to announce the integration with Velodrome and Aerodrome, the leading AMM providing liquidity services on the Base blockchain and the Optimism Superchain.
Velodrome is a Decentralised Exchange founded in 2022 aiming to be the Liquidity Hub for the entire Optimism Superchain by incorporating the best features of AMMs like Curve, Convex and Uniswap. In August 2024 Aerodrome was launched on Base, modelled on the Velodrome V2 protocol. Their novel approach to democratizing liquidity rewards has attracted a loyal fan base, with a combined TVL of over $800 million and monthly trading volumes of over $1.6 billion.With the integration of Entangle’s Blockchain Infrastructure and omnichain tools, Velodrome and Aerodrome are positioned to realize their visions of becoming the premier DEXs on the Optimism Superchain and Base, respectively.
Interoperability in the Superchain
One of the unique features of Velodrome is the distribution of the rewards within their pools, which requires weekly votes by holders of veVELO and veAERO. With the expansion to other L2s and the integration of Entangle’s Photon Messaging Protocol, this distribution structure has the potential to evolve empowering Velodrome to embrace omnichain governance.
Leading the way in creating cross-chain products throughout the Optimism ecosystem, Velodrome shares Entangle’s vision of transacting effortlessly and without barriers, irrespective of the chain the product they’re using is built on. Velodrome recently announced its roadmap of interoperability across the wider Optimism Superchain with the integration of emerging modular L2s. Velodrome can now leverage the Photon Messaging Protocol to ensure the interoperability of its products across the Optimism Superchain. The Photon Messaging Protocol facilitates secure and efficient communication between smart contracts on various blockchains, streamlining the interaction without the need to transfer tokens.
Bringing utility to Liquidity
The integration of Liquid Vaults atop Aerodrome and Velodrome’s infrastructure streamlines liquidity provision and enhances yield generation for users while bolstering their position in the DeFi ecosystem. Liquid Vaults allows users on Base, Optimism and any other supported chain to convert their Liquidity Positions into Composable Derivative Tokens (CDTs), a liquid token representing the underlying LP. This liquid token continues to earn the rewards from the Aerodrome or Velodrome pool that the liquidity is provided in, but can also be leveraged in other Lending & Borrowing and DeFi protocols in the ecosystem. Users can convert their LP into the corresponding liquid CDT through the Liquid Vaults dApp. If a user has a position in the OP/VELO pool with Velodrome on optimism and converts it into the OP/VELO CDT, they will then be able to seek out further yield-generating opportunities such as:
- Providing CDT liquidity on other DEXs on Optimism
- Lending CDTs in L&B protocols like Ajna Protocol
- Earning points in Borpa, Entangle Labs’ gamified meme ecosystem
- Bridge CDTs to other L2s within the Optimism Superchain, unlocking further opportunities for supercharging yield
The Liquid Vaults dApp allows LP providers to automatically convert Aerodrome and Velodrome LP tokens into CDT tokens, optimizing yields without further intervention on the user side.
Customizable data to rely on
No cross-chain dex can function without dependable price feeds and Oracle data. As the world moves to tokenize ever more assets, data will be the lynchpin that enables the evolution of blockchain technology as we move closer to mass adoption. The Universal Data Feeds allow a level of customizability that is unparalleled in the industry. Velodrome will be able to provide accurate and timely pricing for tokenized assets, whether they are on Optimism, Base or further L2s as they are added by Velodrome. By tailoring the data feeds to the relevant products, Velodrome and Aerodrome can ensure that their pricing always remains competitive and that resources can be allocated where they bring the most efficiency to the user’s capital.
Supercharging the Superchain
This integration will provide substantial benefits to users of the Aerodrome and Velodrome ecosystems, but also to the wider ecosystem as Entangle’s product suite can provide stability during market fluctuations, encouraging sustained liquidity provision and unlock new use cases which contribute to the security and prosperity of the Aerodrome and Velodrome platforms.
As the crypto industry matures and takes its rightful place as a revolutionary technology, democratizing finance, science, AI, Physical Infrastructure and many more fields, Entangle and Velodrome are seeking to reduce fragmentation and remove barriers to provide crypto users with a seamless cross-chain experience. Through this program, we continue to make omnichain easy.