Description
Velodrome implements an automated market-maker protocol on Optimism, facilitating token swaps through customizable liquidity pools and vote-escrowed governance. The system distributes VELO token emissions to liquidity providers based on weekly gauge weight voting by veVELO NFT holders. The protocol supports both stable pools for correlated assets and volatile pools for standard pairs, utilizing concentrated liquidity principles for capital efficiency. Trading fees, VELO emissions, and external protocol bribes are distributed to veVELO holders who vote on liquidity pool incentives.