Thread by @VelodromeFi

✨Exciting News Racers ✨

Velodrome is receiving a 3,000,000 $OP grant from @optimismPBC to accelerate our efforts deepen liquidity and drive value back to the ecosystem.

Want details on the grant and how we'll use it?

Let's go for a quick ride!🚴‍♀️💨

👇

Velodrome is an AMM designed to be the central trading and liquidity marketplace on Optimism.

We operate as a public good, where 100% of fees and bribes goes back to $veVELO lockers.

@optimismPBC bootstrapped us to help solve the biggest barrier to ecosytem growth: liquidity.

Deep liquidity on ecosystem pairs is essential to protocols ability to lure users away from main-net + attract the volume needed to fuel exponential growth.

Users need low fee, low slippage swaps at scale.

And that volume should produce value for the ecosystem, not extract it.

That is why @optimismPBC is using a grant from their "Partner Fund" to accelerate our flywheel.

We'll do this by:
⒈ Incentivizing Long-Term Ecosystem Locking
⒉ Incentivizing Liquidity + Partner Onboarding
⒊ Ensuring Protocol Safety + Security

Let's talk more about each!

❶ Incentivizing Long-Term Ecosystem Locking

$veVELO lockers make a long-term bet on both Velodrome and the Optimism ecosystem.

By allocating $OP rewards to lockers, we can ease the barrier to entry and reduce price volatility.

QTY: 750,000 $OP
Recipients: New/existing lockers

❷ Incentivizing Liquidity and Partner Onboarding

We will offer bribe matching, vote boosts, and $OP token pairing (providing liquidity) for partner tokens.

This will increase incentives for $veVELO lockers, while attracting deep liquidity to key ecosystem pairs.

This will also ease the barrier of entry for new protocols moving to Optimism, ensuring they have a highly capital efficient route to bootstrapping liquidity.

It will kick-start the bribe economy. 💸

QTY: 1,750,000 $OP
Recipients: New/existing lockers, partner protocols

❸ Ensuring Protocol Safety and Security

As the liquidity base-layer of the ecosystem, security and safety is critical as we add new features.

We will offer a robust bug bounty + audit program to ensure protocol / ecosystem security.

QTY: 500,000 $OP
Recipients: Participants

We'll be sharing more details about each of these programs in the weeks ahead.

We expect to begin rolling out the incentives next week contingent on receipt of the funds.

We're so grateful for all the support from the @optimismPBC team and all of our partners.

#OPsummer is 🔥