Velodrome wrote the playbook that Aerodrome followed. As the original ve(3,3) DEX, it pioneered the model that now dominates L2 liquidity — and with the January 2026 merger, it's no longer a standalone Optimism DEX but part of the unified Aero Superchain platform.
Summary of this Velodrome review: Velodrome Finance launched in June 2022 as Optimism's central liquidity hub, introducing the ve(3,3) tokenomics model to EVM DeFi. With $9B+ in 2025 trading volume and deep integration with Optimism-native protocols (Synthetix, Lyra, Beethoven X), it established itself as essential Optimism infrastructure. The January 2026 merger with Aerodrome under Dromos Labs creates "Aero" — a unified platform for Superchain liquidity spanning Optimism, Base, and future OP Stack chains.
The ve(3,3) mechanics are identical to Aerodrome: lock VELO tokens for veVELO voting power, vote weekly on pool emissions, earn 100% of trading fees from supported pools plus external bribes. The key difference is ecosystem positioning — Velodrome serves Optimism-native protocols, while Aerodrome serves Base.
One concern: veVELO concentration. The top 100 wallets control approximately 63% of voting power, creating potential governance centralization. This is worth monitoring, though it's common in ve-model protocols where early adopters accumulate significant positions.
For Optimism-focused users, Velodrome remains the liquidity backbone. For multi-chain users, the Aero merger simplifies access to unified Superchain liquidity.
Velodrome Review — What is Velodrome Finance?
Velodrome launched in June 2022 as an Optimism-native DEX built on ve(3,3) tokenomics. The model combines:
- Curve's vote-escrowed mechanics: Lock tokens for governance power - Solidly's (3,3) game theory: Incentive alignment for long-term holders - Convex-style bribe markets: Protocols pay for liquidity votes
Key Facts (Updated February 2026): - Launched: June 2022 - Chain: Optimism (+ Superchain via Aero merger) - TVL: ~$200-300M - 2025 Volume: $9B+ - Token: VELO — governance and fee capture - Model: ve(3,3) (original implementation) - Status: Merged with Aerodrome under Dromos Labs (January 2026)
Who is Velodrome for? - Optimism-focused LPs seeking yield - Protocols needing Optimism liquidity - ve(3,3) governance participants - Long-term VELO holders
Who should skip Velodrome? - Casual swappers (use aggregators) - Beginners unfamiliar with ve(3,3) - Those primarily active on Base (use Aerodrome instead)
Velodrome Review — ve(3,3) Mechanics
Velodrome's ve(3,3) model works identically to Aerodrome (because Aerodrome forked it):
The Core Loop
1. Lock VELO → Get veVELO: Up to 4-year lock, longer = more voting power 2. Vote Weekly: Direct VELO emissions to pools every Thursday 3. Earn Rewards: 100% of trading fees + bribes from voted pools 4. Rebase: Weekly token distribution offsets dilution
Why It Works
The genius of ve(3,3) is incentive alignment: - Protocols bribe for liquidity → pays veVELO holders - veVELO holders vote for bribed pools → earn bribes + fees - LPs provide liquidity to voted pools → earn VELO emissions - Traders get deep liquidity → generate fees - Everyone wins → flywheel spins faster
This is why Velodrome became essential Optimism infrastructure: every protocol needs liquidity, and Velodrome provides the most capital-efficient way to get it.
Velodrome Review — Fees
| Pool Type | Fee | Fee Destination |
| Volatile Pairs | 0.30% | 100% to veVELO voters |
| Stable Pairs | 0.05% | 100% to veVELO voters |
| Slipstream (CL) | Variable | 100% to veVELO voters |
Key point: LPs earn VELO emissions, not trading fees directly. Fees go to governance participants who lock and vote.
Cost Comparison — $10,000 swap:
| DEX | Fee | Total Cost |
| Velodrome (stable) | $5 | ~$5.05 |
| Velodrome (volatile) | $30 | ~$30.05 |
| Uniswap (0.05%) | $5 | ~$5.05 |
| Curve (stable) | $0.40 | ~$0.45 |
For stablecoins, Curve still beats Velodrome on fees. For volatile pairs, Velodrome's 0.30% is standard.
Velodrome Review — The Aero Merger
In January 2026, Velodrome and Aerodrome merged under Dromos Labs:
What's "Aero"?
- Unified liquidity platform for the Superchain - Single interface for Optimism + Base liquidity - Shared governance across chains - Future expansion to additional OP Stack chains
What Changed for Users
| Before Merger | After Merger |
| Velodrome (Optimism) vs Aerodrome (Base) | Aero (Superchain) |
| Separate governance | Coordinated governance |
| Chain-specific liquidity | Cross-chain liquidity access |
| Competing protocols | United front vs Uniswap |
Strategic Implications
The merger positions Aero as the default liquidity layer for the entire Superchain ecosystem. Instead of fragmenting liquidity across chains, the unified platform can offer: - Deeper pools through combined liquidity - Single governance for multi-chain decisions - Stronger bargaining power with protocols
This is a direct challenge to Uniswap's multi-chain dominance.
Velodrome Review — Velodrome vs Aerodrome
| Factor | Velodrome | Aerodrome |
| Chain | Optimism | Base |
| Launch | June 2022 | August 2023 |
| TVL | ~$200-300M | ~$500-600M |
| Pool Creation | Permissionless | Permissioned |
| Maturity | 3+ years | 2+ years |
| Ecosystem | Synthetix, Lyra, Beethoven X | Coinbase ecosystem |
Key difference: Velodrome allows permissionless pool creation — anyone can create a pool. Aerodrome requires permission, giving the team more control over which pools exist.
Post-merger verdict: Use whichever chain you're active on. The governance and incentives are now coordinated.
Velodrome Review — Security
Audit History
| Auditor | Scope | Date |
| Code4rena | V1 Peer Review | May 2022 |
| Spearbit | V2 Full Audit | June 2023 |
| Code4rena | V2 Review | 2023 |
Track Record
- 3+ years operation since June 2022 - No major exploits on core contracts - Codebase is foundation for Aerodrome (battle-tested twice)
Risk Factors
- veVELO concentration: Top 100 wallets control ~63% of voting power - Smart contract complexity: ve(3,3) mechanics increase attack surface - L2 dependency: Relies on Optimism network security
Our Security Rating: 4.5/5 — Longest track record of any ve(3,3) DEX, strong audits, but concentration risk is notable.
Velodrome Review — VELO Tokenomics
Token Utility
- Governance: Lock for veVELO voting power - Fee Capture: 100% of trading fees from voted pools - Bribes: Earn external rewards from protocols - Rebase: Weekly distribution to offset dilution
Supply Dynamics
- Initial supply distributed to ecosystem participants - Weekly emissions to LPs (decaying over time) - Governance controls emission rate adjustments
Concentration Concern
The top 100 wallets controlling ~63% of veVELO is a governance centralization risk. While common in ve-model protocols (early adopters accumulate), it means a small group can significantly influence emission direction.
Velodrome Review — Slipstream (Concentrated Liquidity)
Velodrome V2 introduced Slipstream — concentrated liquidity pools based on Uniswap V3 mechanics:
Benefits: - Higher capital efficiency for LPs - Lower slippage for traders on active ranges - Custom fee tiers per pool
Trade-offs: - More complex LP management - Impermanent loss risk in concentrated ranges - Requires active position management
For passive LPs, standard V2 pools are simpler. For active LPs seeking higher yields, Slipstream offers better capital efficiency.
Conclusion: Should You Use Velodrome?
Velodrome invented the ve(3,3) model that now powers the largest L2 DEXs. The Aero merger makes it part of the Superchain's liquidity infrastructure.
Use Velodrome if: - You're active on Optimism - You want permissionless pool creation - You're providing liquidity to Optimism protocols - You want Superchain governance participation via Aero
Skip Velodrome if: - You're primarily on Base (use Aerodrome) - You want simple swaps (use aggregators) - You're a beginner unfamiliar with ve(3,3) - Governance concentration concerns you
Our Rating: 4.3/5
Bottom Line: Velodrome pioneered ve(3,3) and remains essential Optimism infrastructure. The Aero merger strengthens its position by unifying Superchain liquidity. Slightly lower rating than Aerodrome due to lower TVL and veVELO concentration, but the longer track record and permissionless design are advantages.
For Base liquidity, see our Aerodrome Review. For perpetual trading, see our Hyperliquid Review.
Frequently Asked Questions
Is Velodrome safe?
Velodrome has operated since June 2022 (3+ years) with no major exploits. The codebase is audited by Spearbit and Code4rena, and forms the foundation for Aerodrome. It's the longest-running ve(3,3) DEX, making it one of the more battle-tested options. Bug bounty active on Immunefi.
What are Velodrome fees?
Trading fees are 0.30% for volatile pairs and 0.05% for stable pairs. Slipstream concentrated liquidity pools have variable fees. 100% of all trading fees go to veVELO voters — LPs earn VELO token emissions instead.
What's the difference between Velodrome and Aerodrome?
Same team, same ve(3,3) model, different chains. Velodrome is on Optimism (launched June 2022); Aerodrome is on Base (launched August 2023). In January 2026, they merged under Dromos Labs to create "Aero" — a unified Superchain liquidity platform.
Is veVELO concentration a problem?
The top 100 wallets control approximately 63% of veVELO voting power. This creates governance centralization risk — a small group can significantly influence emission direction. This is common in ve-model protocols but worth monitoring. The merger with Aerodrome may dilute this concentration over time.
Should I use Velodrome or Uniswap on Optimism?
For LP yield and governance participation, Velodrome offers higher potential returns through the ve(3,3) model. For simple swaps, Uniswap or aggregators may be faster. Velodrome has deeper liquidity on many Optimism-native pairs due to protocol bribes.
What is SuperSwaps?
SuperSwaps is Velodrome's cross-chain swap feature enabled by the Superchain architecture. It allows swaps across Optimism and other OP Stack chains without traditional bridging, using the unified Aero liquidity layer.