Velodrome Finance

Name

Velodrome Finance

Legal name

Velodrome Finance

Website

https://velodrome.finance

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Ownership category

akta.pro rank

Product category

Decentralized Exchange Protocol

NAICS

Securities and Commodity Exchanges (52321), Securities and Commodity Exchanges (523210), Securities and Commodity Exchanges (5232)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Spot AMM DEXs (FSADABAA)

akta.pro secondary industries

DEX Liquidity Provision & Market-Making Protocols (FSADABAI), DEX Aggregators & Smart Order Routing (FSADABAC)

Keywords

• Decentralized exchange
• Liquidity provision
• Automated market maker
• Token governance
• Yield farming

Headquarters

HQ city

Forrest City

HQ country

United States

HQ region

North America

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Operations, Personnel, Marketing or Sales

Revenue model

1. Swap Fees: The protocol generates revenue through swap fees charged on trades executed through the DEX. Fees are generated from trading activity across Base, Optimism, and Ethereum mainnet liquidity pools.
2. Native Swap Revenue Distribution: Native swap revenues are redistributed to veAero token holders as a yield mechanism, creating recurring value distribution to governance participants

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Velodrome Finance operates a decentralized exchange (DEX) protocol on the Optimism layer-2 network, providing token swap functionality and liquidity pools for traders and liquidity providers. The protocol uses a veAero governance token model where holders direct liquidity incentives and receive redistributed swap revenues. As part of a planned July 2026 merger with Aerodrome Finance, the protocol will become Aero Protocol, consolidating liquidity across Base, Optimism, and Ethereum mainnet and introducing a Predictive Allocation mechanism.

Product overview

Velodrome Finance operates as a decentralized exchange (DEX) on Optimism and Ethereum layer-2 networks. The company is undergoing a major transformation in July 2026 when it will merge with sister protocol Aerodrome Finance to form Aero Protocol — a unified cross-chain DEX consolidating liquidity across Base, Optimism, and Ethereum mainnet. The combined platform introduces Predictive Allocation, a real-time AI-driven mechanism that forecasts trading demand to optimize liquidity incentive distribution, replacing the traditional weekly gauge voting system. Velodrome has generated over $270 million in swap fees and distributed more than $450 million to token holders as of April 2026.

Differentiator

Problem solved

Functional benefit

Products and services

• Velodrome Finance A decentralized exchange (DEX) protocol on Optimism and Ethereum layer-2 networks that provides token swap functionality and liquidity pools. Users connect wallets to trade tokens, provide liquidity, stake veAero governance tokens, and vote on incentive allocation.
• Aero Protocol The unified protocol formed from the merger of Aerodrome Finance and Velodrome Finance, consolidating liquidity across Base, Optimism, and Ethereum mainnet into a single cross-chain DEX. Includes Predictive Allocation for capital-efficient liquidity incentive distribution.

Quantifiable outcome

• Capital efficiency improvement of up to 80% for professional traders through Predictive Allocation
• +3 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature2 records

Partnerships

Two partnerships are on record, tiered flagship and core.

• Aerodrome FinanceflagshipStrategic or Co-development Partner · 1 July 2026Aerodrome Finance is merging with Velodrome to form the unified Aero Protocol, targeting a July 2026 launch. This merger consolidates the dominant DEX on Base network (Aerodrome) with Velodrome to create a unified cross-chain protocol across Base, Optimism, and Ethereum mainnet.
• Dromos LabscoreStrategic or Co-development Partner · 1 April 2026Dromos Labs acquired and locked 190 million AERO tokens through a buyback program to stabilize tokenomics ahead of the Aerodrome-Velodrome merger. This token acquisition reduces circulating supply and supports price stability during the protocol consolidation.

Scale indicators5 records

Recent moves8 records

Expansion highlights4 records

Others

• 1inch: 1inch is a leading DEX aggregator that routes trades across multiple DEXs including Velodrome. It is an adjacent participant in the same trading ecosystem and a partial competitor for end-user swap volume.

Broad incumbents

• PancakeSwap: PancakeSwap is the largest DEX on BNB Chain and has expanded to multiple chains including Ethereum L2s. Its CAKE token and high-volume AMM model provide a useful comparable for Velodrome's scaling ambition across chains.
• Curve Finance: Curve is a major DEX specializing in stablecoin and like-asset swaps with deep liquidity and ve-token governance. It competes with Velodrome in the LP and governance-token-driven DEX category, particularly on L2 deployments.
• Uniswap: The largest decentralized exchange by trading volume, Uniswap is a direct competitor operating across Ethereum mainnet and multiple L2s including Base and Optimism. It sets the benchmark for AMM-based spot DEX trading against which Velodrome/Aerodrome's L2-focused strategy must compete.

Direct peers

• Balancer: Balancer is a programmable liquidity DEX with weighted pools and veBAL governance, operating across Ethereum mainnet and L2s. It competes directly with Velodrome for liquidity-provider capital and governance-incentivized trading volume.
• Aerodrome Finance: Aerodrome is Velodrome's sister protocol and the dominant DEX on Coinbase's Base network. It shares the same ve(3,3) tokenomics architecture and is actively merging with Velodrome into the unified Aero Protocol, making it the closest direct peer.
• Kyber Network: Kyber Network is a multi-chain DEX aggregator and liquidity hub with KyberDAO governance. It competes with Velodrome for routing and liquidity provision across Ethereum and L2 networks.
• SushiSwap: SushiSwap is a multi-chain AMM DEX with ve-token-style governance (xSUSHI) and cross-chain deployments. It is a directly comparable competitor to Velodrome in the community-governed DEX category.
• Trader Joe: Trader Joe is a community-driven DEX with ve-token governance (veJoe) originally on Avalanche and now expanding to other L2s. Its tokenomics and incentive distribution design are closely comparable to Velodrome's model.

Emerging players

• Maverick Protocol: Maverick is a dynamic-distribution AMM DEX targeting capital efficiency for LPs, deployed on multiple chains including Base. Its differentiated liquidity routing and efficiency focus overlap with Velodrome's Predictive Allocation thesis.

Market position

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/VelodromeFi
• LinkedInlinkedin.com/company/velodromefi

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Velodrome Finance