Sirwin
Sirwin

Amplifying Crypto On Velodrome - Strategies To Boost The Yield

By PVM | Mind Puzzle | 28 May 2024


Velodrome Finance is a next-generation AMM that combines the best of Curve, Convex and Uniswap, designed to serve as Optimism's central liquidity hub. Velodrome uses locked $VELO NFTs to vote on token emissions and receive incentives and fees generated by the protocol.

I have to LPs in there, POOL- wETH and wETH - ACX, both farming $VELO at an accelerate pace. The emissions are sweet and the rewards are growing in value due to the Velodrome/Aerodrome success. The $VELO value surged in 2024 and that's a minor consolation! 

cc3f1ffd1962ad12e7a6835e60a48473e2cd0652ba5dc0b5eca8de8c0b053dbf.png

The PoolTogether LP is relatively new, and started with triple digit APR. It went bigger, as I won more and more prizes on PoolTogether! It started as a single drop... and it become a tidal wave! Man... it's been over a year since I used this catchphrase! Who remembers... will remember! 

The Emissions APR stayed above 100% for weeks, and sometimes even better than that. The amount of $VELO farmed was beyond expectations, and the $VELO price pump made the rewards outstanding. Smells Like DeFi Summer...  Feels like DeFi Summer... 

7b41f917a266fff96fa75a5bf57dcb8cf3f70c3ff28efaa5d937ca9be15ec22d.jpg

I am not the biggest Velodrome fan, and you know why, but I have the $VELO locked and I wouldn't leave it idle. Must earn as much as possible to recover from that $35,000 drain I suffered in January. 

One of the locks was made for 4 years, while the majority of $VELO was locked for "only" one year. Both timeframes are like eons in the Cryptoverse, where the time goes ten times quicker. In one year Velodrome could crumble to pieces, or become the number one protocol in the world. Time will tell! 

1103ff8b705d5490253155cc56e9371e049d016fc87298922684b779cb8711f3.png

The key problem with most AMMs was that the emission rate is often tied to liquidity, rather than to trading volume. Any VELO holder can lock their tokens to convert to veVELO, and this was the path that I choose! The longer the lock, the more veVELO the user receives, which grants them more voting power. 

I claimed the emissions from both LPs and I increased the shorter lock with an extra 1,745 $VELO. This boost raised my new estimated voting power to 1,020 veVELO, guaranteeing higher rewards from voting.

228495a65691a1ac0896c59c20cecb11f9852d40227f9b4cf0375246bfb19143.png

The position in locked VELO will be represented as veVELO, a non-fungible token which can then be traded on NFT marketplaces. Rebasing is used to ensure that VELO lockers were not significantly diluted, where veVELO is distributed to VELO lockers, proportionate to their locked amount.

I claimed and locked the rebase as well, making sure both locks are pumped up for better rewards. All I have to do now is to remember to vote every week, choosing the gauges with the highest reward levels. 

f6ca8c89c3b29b3d9636d791fc7665fb258f94e7e5803a789353491ec325059a.jpg

The system is simple and efficient! The user locks $VELO for voting power, and can to use  it to direct liquidity emissions to specific pools. Liquidity emissions from Velodrome are distributed proportionally based on votes received by each pool, and in return the voters receive 100% of all fees and bribes received by the specific pools that they voted for.

Bribes flow to voters which incentivizes them to vote for the pools with the highest combined value of bribes and fees. I set an alarm for Monday, so I don't forget to vote. I always go for the highest rewards and voting APR, obtained from fees and bribes. The estimate helps me decide which pool to vote for, and earning 6-7 dollars a week is a good deal! 

147c1c895212f71a4f3f9580a7214378e593909bbb93a8ae355e2875ee0b4745.png

Residual Income:

Play2Earn: Upland / Splinterlands / Doctor Who

Cashback Cards: Plutus Card / Crypto.com 

Fountains: PipeFlare / GlobalHive ZCash 

Creators bundle: Publish0xHive & Presearch

PVMihalache The Author - My Amazon Books

GrillApp - New Write2Earn Dapp

Claim Your Mode Network Points

733491d3c1c3360ca24c41dc7480369e.png

 

How do you rate this article?

85


PVM
PVM Verified Member

UMA Ambassador 🐔 Across Committee Member 🌉 Horizen Ambassador


Mind Puzzle
Mind Puzzle

Think! ... it's still free! An amalgam of cryptocurrency, science, arts, news and other manifestations of human intellectual will be published on this blog. Sometimes I will add my personal opinions or midnight revelations

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.