Velodrome, a decentralised cryptocurrency exchange, has surpassed $100 million in total value locked (TVL) on the Optimism network (layer-2 on Ethereum).
On Thursday, the total value locked on the exchange surpassed $106 million, indicating a rapidly expanding demand among DeFi customers.
This puts it in competition with competitor exchanges on the network, such as Uniswap. While Uniswap has almost double the trading volume of Velodrome on Optimism, the younger upstart currently has a higher TVL and more than twice as many transactions. It currently has the second-largest TVL among all Optimism apps.
Velodrome, released on June 1, is a fork of Solidly, a decentralised exchange created on the Fantom blockchain by Yearn Finance creator Andre Cronje. The primary reason for the increase in TVL is that users have locked their tokens to get weekly incentives.
Velodrome’s vote-escrowed (VE) mechanism incentivises users to stake the VELO governance token. On Velodrome, VELO may be staked for veVELO, another token that entitles its holders to VELO awards and a portion of the protocol costs.
