Velodrome Finance: The Next-Gen Liquidity Engine for the Superchain

Velodrome Finance: A Liquidity Engine for the Next-Generation DEX

(Source: VelodromeFi)

Velodrome Finance is more than just an AMM. As a financial protocol, it combines deep liquidity, scalable architecture, and robust governance mechanisms, all designed to deliver a unified, efficient trading experience across the Superchain ecosystem.

Deployed on the high-performance Optimism network, Velodrome draws on the strengths of Curve, Convex, and Uniswap V2. It stands out for its ultra-low slippage, rapid transaction processing, and intuitive governance design. For both traders and liquidity providers, Velodrome is not only an exchange but also the liquidity hub of the L2 ecosystem.

Breakthrough Innovation and Expanding Ecosystem

In 2025, Velodrome maintains its rapid growth trajectory, rolling out several major features that impact the entire Superchain. Here are the year’s most significant milestones:

1. Superchain Expansion: Supporting 10+ Chains and Establishing Cross-Chain Liquidity Infrastructure

In the first half of this year, Velodrome added six new deployment points, expanding to more L2s and sidechains and building a unified liquidity layer across over ten networks. This includes Ink, Soneium, Swellchain, Unichain, Superseed, and Celo. Both emerging chains and major public blockchains now rely on Velodrome as their liquidity engine, underscoring its indispensable role within the Superchain.

2. Superswaps: The First Unified Cross-Superchain Swap Interface

Superswaps has made Velodrome the first DEX on the Superchain to enable seamless cross-chain liquidity interactions. Here’s what it means for each participant:

• Users: Swap tokens across chains with a single interface
• Protocols: Deploy liquidity on one chain and access cross-chain trading volume
• LPs: Capture trading demand from the entire Superchain
• Governance: Earn all protocol revenue from cross-chain swaps

Superswaps offers MEV protection, fully on-chain execution, and simple integration, establishing itself as essential public infrastructure.

3. VerifiedERC20: A Testbed for the New Token Standard

Velodrome has partnered with Celo and Self to launch VerifiedERC20, allowing tokens to add external verification requirements for specific functions. This innovation brings:

• A more secure asset model
• Tokens with built-in verifiable features
• A benchmark for advancing DeFi token standards

4. XOP: Extending OP Mainnet Governance Incentives to the Superchain

With XOP, protocols can now:

• Use OP tokens as cross-chain incentives
• Allow voters to claim OP across multiple networks
• Easily bridge OP back to the OP Mainnet

This capability significantly strengthens governance connectivity between the OP ecosystem and the Superchain.

5. Application Updates

Velodrome has delivered major UI/UX upgrades, including a more intuitive swap flow, an improved LP interface, pool type filters for LPs, an APR comparison tool, comprehensive mobile support, and Binance Wallet integration. These enhancements have boosted performance by approximately 40%, delivering a noticeably better daily user experience.

6. ALM V2: An Enhanced Automated Market Making Experience

By integrating Mellow’s ALM V2, Velodrome equips LPs with smarter, more hands-off strategy options. Key features include:

• Auto-adjusting strategy parameters
• Streaming liquidity rewards
• Vault safety thresholds
• Optimized support for LSTs and LRTs

Slipstream, one of DeFi’s highest-performing AMMs, combined with ALM V2, makes it easier than ever for LPs to optimize returns.

7. Pool Launcher: One-Click Liquidity for New Tokens

Velodrome is set to launch Pool Launcher, making it easy for anyone to provide liquidity for new tokens. The Emerging Tokens feature will boost visibility for these new pools, helping new projects establish early liquidity.

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Summary

Velodrome has evolved from a decentralized exchange on Optimism into the liquidity heart of the Superchain. As cross-chain interoperability becomes the new standard, Velodrome Finance is steadily establishing itself as a foundational liquidity infrastructure in DeFi.